Rochellel's Daily Wire

September 10, 2020

Student Loan Servicer Sanctioned $378,000 for Civil Contempt by New York Judge

Bankruptcy Judge Martin Glenn imposed civil contempt sanctions for ignoring court orders over five years.

2nd Circuit, New York, New York Southern District

September 02, 2020

Trustee Ordered to Disgorge Fees for Failing to Pay the U.S. Trustee’s Fees

The power to order disgorgement of fees arose under Section 105(a), not from Sections 330 or 331.

2nd Circuit, New York, New York Eastern District

August 18, 2020

No ‘Core’ Jurisdiction to Protect Nondebtors with Injunctions, N.Y. District Judge Says

New York district judge differs with the Third Circuit on a bankruptcy court’s constitutional power to issue nondebtor, third-party releases.

2nd Circuit, New York, New York Southern District

August 14, 2020

Second Circuit Holds that Flip Clauses in Swaps Are Enforceable

Even if flip clauses are ipso facto clauses, the Second Circuit holds that enforcement is permitted by the safe harbor in Section 560.

2nd Circuit

July 29, 2020

Using a Casino’s ATM Makes the Casino the Initial Transferee, Not a ‘Mere Conduit’

New York judge gives casinos the responsibility for assuring that a gambler’s use of a corporate ATM card is not a fraudulent transfer.

2nd Circuit, New York, New York Southern District

July 22, 2020

Second Circuit Broadly Caps Wage Claims Accelerated Before Bankruptcy

Second Circuit prevents ‘artful drafting’ from evading the cap on golden parachutes under Section 502(b)(7).

2nd Circuit

July 21, 2020

Majority of Courts Still Permit Small-Dollar Avoidance Suits in the Debtor’s Home Court

New York district judge agrees with the ABI Journal: Congress did not succeed in requiring trustees to file small-dollar avoidance actions in the defendant’s district.

2nd Circuit, New York, New York Eastern District

July 15, 2020

Fines for Defrauding Consumers Are Dischargeable in a Corporate Chapter 11 Plan

Courts are divided on discharging fines in a corporate chapter 11 case when the government itself was not defrauded.

2nd Circuit, New York, New York Southern District

July 06, 2020

The Date of Service of a Writ of Garnishment Is the Date of Transfer of a Preference

Circuits are split on the date of transfer resulting from a garnishment.

2nd Circuit, Connecticut

June 30, 2020

Saving a Failing Company Doesn’t Entail ‘Defalcation’ Regarding Union Obligations

A properly drafted union contract still failed to leave a company officer with a nondischargeable debt for failing to make employer contributions to a union welfare fund.

2nd Circuit, New York, New York Eastern District