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ABI Journal

June 11, 2020

Force Majeure Clause Cut an Illinois Debtor’s Rent by 75%

Chicago judge cut rent by 75% after governor prohibited on-premises dining in the debtor’s restaurant.

7th Circuit, Illinois, Illinois Northern District

June 02, 2020

Liquidating in Chapter 11 Won’t Stop an EEOC Suit for Employment Discrimination

Magistrate judge decided that the regulatory power exception to the automatic stay allows the EEOC to proceed, but he stayed the suit by the former employee seeking damages.

11th Circuit, Georgia, Georgia Northern District

May 29, 2020

Postpetition Default on a Mortgage Is a Prepetition Debt for Setoff Purposes

The obligation on a mortgage is incurred when the mortgage is granted, even though the payment default may occur after filing, Judge Thuma says.

10th Circuit, New Mexico

May 15, 2020

Judge Christopher Klein Takes Sides on a Circuit Spilt Coming to the Supreme Court

Judge Klein’s opinion reads like an amicus brief urging the Supreme Court to grant ‘cert’ and resolve a circuit split by taking sides with the majority on Section 362(c)(3)(A).

9th Circuit, California, California Eastern District

May 06, 2020

May a Bankruptcy Court Annul the Automatic Stay after Acevedo?

Bankruptcy Judge Grossman explores the extent to which the Supreme Court’s Acevedo decision bars courts from granting relief retroactively.

2nd Circuit, New York, New York Eastern District

April 21, 2020

Justices Postpone Argument in Fulton until the Supreme Court’s Next Term

Supreme Court won’t decide until late this year or early 2021 whether the automatic stay requires creditors to turn over repossessed property without a turnover action.

Supreme Court

April 20, 2020

Courts Must Rule on ‘Comfort Orders’ When Requested, BAP Says

ABI Consumer Commission recommended that ‘comfort orders’ be obtained through motion practice, not adversary proceedings.

9th Circuit

April 06, 2020

Taggart Didn’t Let Corporate Employees Off the Hook for a Stay Violation

Tortious or fraudulent conduct needn’t be shown to hold a corporate employee liable for violating the automatic stay.

1st Circuit, Rhode Island

March 24, 2020

Ninth Circuit BAP Applies Taggart to Violations of the Automatic Stay

Taggart left open the question of whether the ‘no objectively reasonable basis’ standard for discharge violations also applies to contempt of the automatic stay.

9th Circuit

February 11, 2020

Section 362(k)(1) Sanctions Apply to Automatic Stay Violation Continuing After Discharge

Almost $35,000 in actual and punitive damages was imposed on a judgment creditor and its collection law firm for failing to vacate a garnishment following notice of bankruptcy and discharge.

9th Circuit, California, California Eastern District