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ABI Journal

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 District

October 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 Circuit

October 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 Circuit

October 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 District

October 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 District

October 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 District

October 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 District

October 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 District

September 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.

2nd Circuit, New York, New York Southern District

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