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ABI Journal

August 08, 2023

Second Circuit Nixes Nationwide Class Actions for Discharge Violations

The Second Circuit split with the First Circuit, which had permitted nationwide class actions because the discharge injunction is statutory.

2nd Circuit

August 03, 2023

J&J’s ‘Baby Powder’ Chapter 11 Case Dismissed a Second Time: No Financial Distress

Bound by the Third Circuit’s first LTL decision, the bankruptcy court found that LTL’s rejiggered second filing suffered from the same defect: no immediate financial distress.

3rd Circuit, New Jersey

July 17, 2023

Lack of Creditor Opposition Isn’t Grounds for Extending an Expiring Automatic Stay

A repeat filer in chapter 13 must show ‘clear and convincing evidence’ of improved financial condition to warrant an extension of the automatic stay under Section 362(c)(3)(B), Chief Judge Taddonio says.

3rd Circuit, Pennsylvania, Pennsylvania Western District

July 05, 2023

A Bankruptcy Petition Automatically Stays the Filing of an Appeal or a Cross Appeal

When the debtor files bankruptcy before the time has elapsed for a creditor to file a cross appeal, the cross appeal is deemed timely when filed within 30 days after the stay terminated, the Tenth Circuit held.

10th Circuit

June 27, 2023

A Supreme Court Arbitration Opinion Could Disrupt Bankruptcies

Split 5/4, the Supreme Court rules that denial of a motion to compel arbitration automatically imposes a stay pending appeal.

Supreme Court

June 23, 2023

A Fourth Circuit Dissenter Opposes Mass-Tort Injunctions Protecting Non-Debtors

The Fourth Circuit majority upheld a preliminary injunction barring tort suits against a debtor’s nonbankrupt affiliates following a Texas divisional merger.

4th Circuit

June 19, 2023

An Alter Ego Suit Doesn’t Violate the Discharge Injunction, BAP Says

At least where nondebtor releases are prohibited, and if Delaware law controls, a suit against an alter ego doesn’t violate the discharge injunction, the Ninth Circuit BAP says.

9th Circuit

May 26, 2023

Lack of a Common Plan or Scheme Means It Isn’t Single Asset Real Estate

A two-story commercial condominium wasn’t ‘single asset real estate,’ Judge Mastando holds.

2nd Circuit, New York, New York Southern District

May 03, 2023

Ultimate Success of the J&J Subsidiary’s Second ‘Talc’ Bankruptcy Is Up in the Air

The bankruptcy judge only gave nondebtor J&J companies a more limited stay in the second LTL chapter 11 case.

3rd Circuit, New Jersey

May 02, 2023

A Writ of Possession Doesn’t Terminate a Lease or Preclude Assumption

A landlord who terminates a lease isn’t entitled to a claim for future rent, at least in Florida, according to a district judge who affirmed Bankruptcy Judge Isicoff.

11th Circuit, Florida, Florida Southern District