January 28, 2025
Debtor Not Compelled to Arbitrate Automatic Stay or Discharge Violations
A district court in Minnesota left the door open for sometimes compelling debtors to arbitrate claims arising in a bankruptcy case.
8th Circuit, MinnesotaJanuary 23, 2025
Fourth Circuit Upholds a $31 Million Default Judgment for Discovery Abuses
Long Island’s Judge Grossman warns lawyers that they may be paid nothing if they file chapter 11 cases just to delay a secured creditor, with no legitimate strategy for selling the property, refinancing or confirming a plan.
4th CircuitJanuary 10, 2025
District Courts Disagree on Enforcing an ‘Automatic Stay’ Protecting Nondebtors
A district judge in Ohio declined to sit as an appellate court by deciding whether a bankruptcy court in another state had properly ‘spread’ the automatic stay.
6th Circuit, Ohio, Ohio Northern DistrictDecember 24, 2024
Ninth Circuit Primed to Decide Whether Emotional Distress Damages Survived Taggart
The Ninth Circuit BAP eased the burden on debtors needing to prove that a lender violated Section 524(i) by failing to credit payments made under a plan.
9th CircuitDecember 20, 2024
Bankruptcy Has No General Exception to an Automatic Stay After Denial of Arbitration
A Delaware bankruptcy judge says there could be circumstances when automatic stays will not be enforced after the court has denied a motion to compel arbitration.
3rd Circuit, DelawareDecember 17, 2024
Forcing Sale of a Debtor’s Milk Quota Is No Stay Violation, First Circuit Says, Reversing District Court
The First Circuit applied the ‘collateral order doctrine’ to allow an appeal by the government when a private party would be stuck with a nonappealable, interlocutory order.
1st CircuitDecember 10, 2024
A Magistrate Judge Refuses to Enforce an Order Staying Actions Against Nondebtors
A magistrate judge decided that a bankruptcy court’s order from another district halting suits against nondebtors was unenforceable because it was not an ‘injunction’ made under Section 105(a).
6th Circuit, Michigan, Michigan Eastern DistrictDecember 03, 2024
Purdue Preliminary Injunction Protecting Nondebtors Upheld on Appeal
The same district judge who correctly predicted that Purdue’s nonconsensual releases were prohibited has nonetheless upheld a preliminary injunction barring suits against nondebtors.
2nd Circuit, New York, New York Southern DistrictNovember 22, 2024
Proceedings on a Confession of Judgment Can’t Be Removed as ‘Related To’
At least in New York, proceedings on a confession of judgment are neither a ‘claim’ nor a ‘cause of action’ and can’t be removed under 28 U.S.C. § 1452(a).
2nd Circuit, New York, New York Southern DistrictNovember 14, 2024
Barring Use of an Online Payment Platform Was an Automatic Stay Violation
Bankruptcy Judge Michelle Harner decided that a mortgage servicer must allow a chapter 13 debtor’s continued use of an online payment platform.
4th Circuit, Maryland