December 28, 2021
Delaware Judge Issues Comprehensive Opinion on Makewholes and Unmatured Interest
Split grows on allowance of makewholes and what constitutes disallowed, unmatured interest.
3rd Circuit, DelawareDecember 21, 2021
Owner of a Long-Defunct Business Didn’t Qualify for Subchapter V
Being an ordinary employee didn’t mean that the debtor was engaged in business to qualify for Subchapter V.
3rd Circuit, Pennsylvania, Pennsylvania Western DistrictDecember 08, 2021
Delaware Bankruptcy Judge Dismisses a Lawsuit for Forum Non Conveniens
Although a chapter 11 plan can bind parties throughout the world, Judge Sontchi wouldn’t let a foreign debtor sue a foreign bank in the Delaware bankruptcy court over a transaction that occurred in England.
3rd Circuit, DelawareOctober 26, 2021
Bar Date Notice by Email Is Insufficient, Delaware’s Judge Goldblatt Says
Notice by email may satisfy due process but doesn’t comply with notice by ‘mail’ under Bankruptcy Rule 2002.
3rd Circuit, DelawareOctober 14, 2021
Refusing to Release an Attachment After Filing Is No Stay Violation Following Fulton
Pennsylvania’s Judge Conway hints that failure to stop proceedings after bankruptcy can be an automatic stay violation, even after Fulton.
3rd Circuit, Pennsylvania, Pennsylvania Middle DistrictOctober 01, 2021
Third Circuit Makes Strict Rules Before Subrogation Rights Kick In
There can be no question about whether the beneficiary of a surety bond has been ‘paid in full’ before the surety has subrogation rights.
3rd CircuitSeptember 27, 2021
Issue and Claim Preclusion Didn’t Bar Challenging a Lien Previously Considered Valid
Newly applicable law permitted a chapter 13 debtor to cram down a lien that the debtor previously had considered to be valid.
3rd Circuit, DelawareSeptember 22, 2021
Third Circuit Makes More Rules on the Proper Scope of Asbestos Channeling Injunctions
The Third Circuit made more rules to decide whether an insurance company can be insulated from failure-to-warn claims by the channeling injunction in a chapter 11 ‘asbestos’ plan.
3rd CircuitSeptember 16, 2021
Good Faith Is No Defense to an Allegedly Willful Stay Violation, Third Circuit Says
Lack of authority on point is no defense to a willful violation of the automatic stay, according to the Third Circuit.
3rd CircuitSeptember 14, 2021
Chapter 13 Debtor Keeps a Whopping Increase in the Value of a Home
On a question where the courts are split, a New Jersey bankruptcy judge allowed the chapter 13 debtor to retain a $100,000 increase in value when he sold his home.
3rd Circuit, New Jersey