November 02, 2022
A Security Deposit Is an Unsecured Loan, Unless State Law or the Lease Says Otherwise
If a tenant’s security deposit was swept by the landlord’s secured creditor but was not held in trust, the tenant has no recourse other than to file an unsecured claim.
2nd Circuit, New York, New York Southern DistrictOctober 21, 2022
Second Circuit Says Orderly Liquidation Value Is Proper for a Retailer in Chapter 11
The Second Circuit adapts Rash to value the lender’s collateral in chapter 11 where there was a going-concern sale.
2nd CircuitOctober 20, 2022
Possibly Dicta, the Fifth Circuit Disallows Make-Wholes
Creating a circuit split, the Fifth Circuit holds that the solvent-debtor exception to the allowance of post-petition interest survived adoption of the Bankruptcy Code.
5th CircuitOctober 19, 2022
It’s Virtually Impossible to Waive Discharge as an Affirmative Defense, Judge Tucker Says
Waiting four years to raise discharge as a defense does not invoke equitable estoppel or laches.
6th Circuit, Michigan, Michigan Eastern DistrictOctober 18, 2022
Otherwise Valid Post-Petition Claims Sometimes Won’t Qualify for Administrative Status
Judge Sarah Hall declined to expand the exception in Reading for post-petition claims to have administrative status.
10th Circuit, Oklahoma, Oklahoma Western DistrictOctober 17, 2022
Debtor Can’t Compel Arbitration on an Involuntary Petition
A creditor can’t be compelled to arbitrate the validity of a claim before the bankruptcy court decides whether the involuntary petitioner’s claim is subject to a bona fide dispute.
6th Circuit, Tennessee, Tennessee Middle DistrictOctober 05, 2022
When Renewed Pre-Petition Contracts Can and Can’t Have Administrative Status
Claims under pre-petition contracts extended after bankruptcy can have administrative status if there was benefit to the estate, district judge says, reversing the bankruptcy court.
2nd Circuit, New York, New York Southern DistrictOctober 04, 2022
New York Judge Splits with Colleagues on Redaction of Crypto Customers’ Names
Judge Glenn allowed the redaction of individual crypto customers’ home and email addresses, but requires the disclosure of their names and the amount of their claims. No redactions for business customers.
2nd Circuit, New York, New York Southern DistrictSeptember 20, 2022
Claims Agents Aren’t Junior Judges Ruling on the Validity of Claim Transfers
The transferee of a claim doesn’t have standing to object to recording the transfer of a claim to it on the claims docket, Judge Garrity says.
September 15, 2022
Second Circuit Definitively Defines ‘Inquiry Notice’ Under New York Law
Saving Revlon’s bank $500 million, the Second Circuit holds that the law of restitution allows a bank to recover payments made mistakenly when the recipient had no right to receive the payment.
2nd Circuit