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ABI Journal

March 22, 2023

Renewing a Title Loan Just Before Chapter 13 Didn’t Make the Filing in Bad Faith

Ruling the other way would have barred chapter 13 filings after renewing title loans.

11th Circuit, Alabama, Alabama Middle District

March 14, 2023

Oversecured Creditor Granted ‘Default’ Interest on a Loan Purchased at Discount

District judge in Connecticut upheld an award of ‘default’ interest, even though the fully secured lender had opposed the chapter 11 process and resisted the use of its cash collateral.

2nd Circuit, Connecticut

March 07, 2023

Revlon Says: Creditors Lack Standing to Assert Claims of ‘General Interest to the Estate’

A creditor with ‘derivative’ claims based on preference or fraudulent transfer can’t convert them to ‘direct’ claims by asking for equitable relief.

2nd Circuit, New York, New York Southern District

March 01, 2023

First Circuit Writes a Treatise on the Elements of Judicial Estoppel

Disputed facts can defeat invocation of judicial estoppel on summary judgment.

1st Circuit

February 28, 2023

Ninth Circuit Panel Splits on Counting Creditors for an Involuntary Petition

The majority and the dissenter disagreed on whether the judgment merged individual creditors’ claims into one claim.

9th Circuit

February 16, 2023

Losing a Motion to Reopen a Case Can Be a Victory for the Debtor (Sometimes)

An act of Congress that waived sovereign immunity for Marines at Camp Lejeune meant that personal injury tort claims did not arise when the injury was sustained.

4th Circuit, Virginia, Virginia Eastern District

February 09, 2023

Electric Power Held Not to Be Goods with a 20-Day Priority Under Section 503(b)(9)

An Oregon power company appears headed for the Ninth Circuit to decide whether electric power qualifies as “goods” to be accorded the 20-day priority.

9th Circuit, Oregon

February 08, 2023

For the Cap on Lease Rejection Claims, Judge in the SDNY Adopts the ‘Time Approach’

Bankruptcy Judge Michael Wiles differed with his colleagues who in previous years had employed the ‘time approach’ in calculating a landlord’s rejection damages under Section 502(b)(6).

2nd Circuit, New York, New York Southern District

February 01, 2023

A UCC Lien on ‘Accounts’ Won’t Attach to a Postpetition Sale of Real Property

Although a UCC lien on ‘accounts’ would attach outside of bankruptcy to proceeds from the sale of real property, Section 552(b) cuts off attachment if the sale occurs after filing

5th Circuit, Texas, Texas Southern District

January 25, 2023

Fourth and Third Circuits Give Priority to Obamacare’s Individual Mandate Penalty

The Fourth Circuit sides with the Third on the Affordable Care Act’s ‘individual mandate.’ Majority says it was a tax measured by income, thus giving the IRS a priority tax claim.

4th Circuit