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ABI Journal

March 24, 2022

Defamation and IIED Claims Are Not ‘Personal Injury Torts’

Section 157(b)(5) does not bar the bankruptcy court from trying defamation and IIED claims, Judge Thuma says, siding with Judge Bernstein.

10th Circuit, New Mexico

March 17, 2022

No ‘Excusable Neglect’ for Late Claim if Class Claim Was Denied, Fifth Circuit Says

Fifth Circuit opinion shows that disallowance of a class proof of claim may preclude individual class members from filing late claims.

5th Circuit

March 15, 2022

To Be a Section 544(b)(1) Predicate Claim for a 10-Year Lookback, the Claim Must Be Filed

A claim of the IRS can provide a 10-year lookback for avoidance actions, but the claim must have been filed.

3rd Circuit, Delaware

March 14, 2022

Another New York District Judge Is Hostile to Nondebtor, Third-Party Releases

At the risk of committing error, a district judge in New York reads a third-party release to cover only derivative claims, not direct claims that a creditor may have against a nondebtor.

2nd Circuit, New York, New York Southern District

March 01, 2022

Johnson & Johnson Survives a Motion to Dismiss that Alleged a Bad Faith Filing

Judge in New Jersey explains why chapter 11 is the best alternative for a large company to deal with mass torts.

3rd Circuit, New Jersey

February 11, 2022

Chapter 13 Plan that Cures Arrears Pays Interest on Unpaid Principal, Judge Faris Says

Interest, if any, due on arrears cured under a plan derives from the loan documents and state law.

9th Circuit, Hawaii

January 21, 2022

On Title Loans, a Judge Decides Between Conflicting Eleventh Circuit Opinions

Can a state law properly decree when a debtor’s property drops out of the estate?

11th Circuit

January 19, 2022

Another District Judge Emphatically Rejects a Plan with Non-Debtor Third-Party Releases

A district judge in Virginia holds that third-party, non-debtor releases must be approved by district judge under Stern and must comply with the strictures of Federal Rule 23.

4th Circuit, Virginia, Virginia Eastern District

January 14, 2022

Expanding on Midland Funding, a BAP Disallows Fee-Shifting for Time-Barred Claims

A state statute imposing sanctions for groundless claims is procedural and preempted by federal law with regard to fee-shifting.

9th Circuit

January 11, 2022

Purdue District Judge Authorizes Appeal to the Second Circuit on Non-Debtor Releases

The district judge who overturned confirmation of Purdue’s chapter 11 plan is requiring the debtor to expedite the appeal to the Second Circuit.

2nd Circuit