January 24, 2023

Bankruptcy Judge Reflects on ‘Leverage-Shifting’ In Denying a Nondebtor Injunction

Bankruptcy Judge William Lafferty declined (for now) to halt suits against nondebtor affiliates for lack of an adequate record to justify a preliminary injunction.

9th Circuit, California, California Northern District

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 15, 2022

Like Willful Violations, Technical Stay Violations Are Void, Not Just Voidable

California bankruptcy judge doubts the Ninth Circuit will adopt the BAP’s dicta by holding that technical stay violations are only voidable, not void.

9th Circuit, California, California Eastern District

October 13, 2022

Misleading Advertising to Poach a Debtor’s Customers Is No Stay Violation

False advertising that violates non-bankruptcy law isn’t necessarily a violation of the automatic stay, New York district judge says.

2nd Circuit, New York, New York Southern District

October 11, 2022

Court Halts States’ Police and Regulatory Suits against Non-Debtor Johnson & Johnson

In spreading the automatic stay, the bankruptcy court again employed the traditional analysis without recognition that the non-debtors are solvent.

3rd Circuit, New Jersey

September 27, 2022

Judge McAffee Agrees with Former Judge Sontchi on Authorized Corporate Actions

The automatic stay does not bar increasing authorized shares when the debtor is a minority shareholder.

4th Circuit, North Carolina, North Carolina Eastern District

September 26, 2022

Stay Violation Upheld Despite ‘Ambiguity’ About the Debtor’s Interest in the Property

Is doubt about whether the debtor has an interest in property sufficient to invoke Taggart and bar the finding of a willful stay violation?

9th Circuit, Washington, Washington Western District

July 08, 2022

Second Circuit Bright-Line Rule: It’s Always a Stay Violation if Debtor Is a Defendant

Second Circuit exercises ‘hypothetical’ appellate jurisdiction when finality is murky.

2nd Circuit

June 29, 2022

Lender Defaulted on the Merits for ‘Prolonged, Extraordinary’ Discovery Violations

Despite contrary Second Circuit dicta, retiring Judge Robert Drain certified a nationwide class in a suit for violation of the discharge injunction.

2nd Circuit, New York, New York Southern District

May 27, 2022

Bankruptcy Didn’t Block Contempt Proceedings in District Court Against a Debtor

In a case headed for the Tenth Circuit, upholding the dignity of the court overcame the automatic stay.

10th Circuit, Utah