September 07, 2021
Chapter 11 Plans May Discharge Post-Confirmation ‘Admin’ Claims, Third Circuit Says
Although Section 1141(d)(1) sets a default rule only discharging claims that arose before confirmation, Circuit Judge Ambro says that a plan may alter the default rule and allow discharge of administrative claims arising after confirmation.
3rd CircuitSeptember 02, 2021
Bankruptcy Courts Aren’t Prohibited from Entering Mareva Injunctions
The Supreme Court’s Grupo Mexicano decision doesn’t bar a bankruptcy court from freezing a defendant’s assets prior to judgment in a fraud action, Judge Sontchi says.
3rd Circuit, DelawareJuly 27, 2021
Critical Vendor Status Is No Defense to a Preference Claim
Critical vendor status is a defense to a preference claim only when the defendant was specifically named in an order, stipulation or agreement requiring full payment of the creditor’s prepetition claim, Judge Dorsey says.
3rd Circuit, DelawareJuly 09, 2021
Amended Chapter 13 Plan Allowed to Cure Post-Petition Mortgage Defaults
Courts are split on whether a debtor may amend a chapter 13 plan to cure post-petition defaults on a principal residence.
3rd Circuit, New JerseyJuly 07, 2021
Contingency Fees Under a Trust Indenture May Not Result in a Claim, Judge Shannon Says
A standard provision in a trust indenture meant no recovery for the indenture trustee’s attorneys.
3rd Circuit, DelawareJuly 02, 2021
Sovereign Immunity Prevailed Because a Slot Machine License Isn’t ‘Property’
In Pennsylvania, a gaming license isn’t ‘property.’ It’s a revocable license that can’t be owned.
3rd CircuitJuly 01, 2021
Judge Sontchi Cuts Off U.S. Trustee Fees on Confirmation of a Chapter 11 Plan
Closing a chapter 11 case after confirmation to avoid U.S. Trustee fees won’t be necessary if the ruling by Judge Sontchi holds up.
3rd Circuit, DelawareJune 09, 2021
Increasing Debtor’s Profit or Revenue Isn’t Required to Establish an ‘Admin’ Claim
An administrative creditor isn’t a ‘guarantor’ of the success of the project, Delaware’s Bankruptcy Judge Goldblatt says.
3rd Circuit, DelawareJune 08, 2021
Federal Common Law Doesn’t Define a Business Trust Eligible for Chapter 11
Recent Supreme Court authority supports the conclusion by Delaware’s Judge Sontchi that law from the jurisdiction of incorporation, not federal common law, determines what is or isn’t a business trust eligible for chapter 11.
3rd Circuit, DelawareMay 28, 2021
Third Circuit Finds Broad Waiver of Sovereign Immunity for Suits Augmenting the Estate
Circuit Judge Ambro generously interprets Katz to mean that ratification of the Constitution waived state sovereign immunity broadly for suits to augment a bankrupt estate.
3rd Circuit