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ABI Journal

January 06, 2023

Ninth Circuit Says: A Sale Order Can’t Alter the Terms of the Contract

A surprising opinion by the Ninth Circuit was nonprecedential.

9th Circuit

January 04, 2023

It Wasn’t a Good Idea for 3M Corp. to Call Its Multidistrict Litigation a ‘Failure’

District judge remonstrates a solvent parent company for seeking the protections of bankruptcy without filing chapter 11 itself.

11th Circuit, Florida, Florida Northern District

December 21, 2022

Failure to Exercise a Purchase Option Is Not a Transfer, Third Circuit Says

The failure to convert a contingent interest into ownership is not a transfer that could be avoided as a fraudulent transfer.

3rd Circuit

December 06, 2022

The Ninth Circuit BAP Revisits the First Semester of Law School Contracts

Agreement on the price and nothing else short of an enforceable contract.

9th Circuit

December 01, 2022

The Bankruptcy Code Doesn’t Invalidate Transfer Restrictions in an Operating Agreement

The transfer restrictions in an LLC’s operating agreement are enforceable in a bankruptcy sale, the Tenth Circuit BAP says.

10th Circuit

November 22, 2022

Chapter 7 Estate Takes Post-Petition Appreciation on Conversion from Chapter 13

Joining the ‘slight minority,’ Judge Fenimore rules that post-petition appreciation in the value of a homestead goes to the chapter 7 estate when the chapter 13 case converts.

8th Circuit, Missouri, Missouri Western District

November 08, 2022

Claiming ‘100% of FMV,' Debtors Keep Postpetition Appreciation in Exempt Assets

Ninth Circuit BAP interprets Taylor and Schwab to mean that a trustee cannot revisit the value of an exempt asset if the debtor claimed ‘100% of FMV’ and there was no timely objection.

9th Circuit

October 27, 2022

Fifth Circuit Interprets Section 363(m) More Broadly than Other Circuits

Anything that is ‘integrally related’ to a sale is moot in the Fifth Circuit, according to a New Orleans district judge.

5th Circuit, Louisiana, Louisiana Eastern District

October 21, 2022

Second Circuit Says Orderly Liquidation Value Is Proper for a Retailer in Chapter 11

The Second Circuit adapts Rash to value the lender’s collateral in chapter 11 where there was a going-concern sale.

2nd Circuit

October 06, 2022

Property Held in a Joint Tenancy Leaves the Estate on the Debtor’s Death

If a debtor owns property as a joint tenant with right of survivorship, the trustee has nothing to sell if the debtor dies.

7th Circuit, Illinois, Illinois Northern District