November 10, 2021

Eleventh Circuit Differentiates the Two Standards for Approval of Non-Debtor Releases

The Eleventh Circuit has two standards for non-debtor releases: One for free-standing settlements and another for releases engrafted into chapter 11 reorganization plans

11th Circuit

October 26, 2021

Bar Date Notice by Email Is Insufficient, Delaware’s Judge Goldblatt Says

Notice by email may satisfy due process but doesn’t comply with notice by ‘mail’ under Bankruptcy Rule 2002.

3rd Circuit, Delaware

October 25, 2021

Barton Didn’t Stop Creditors from Garnishing a Chapter 13 Trustee After Dismissal

The debtor’s bad faith chapter 13 filings convinced Judge Hall to allow garnishment of funds held by the trustee after dismissal.

10th Circuit, Oklahoma, Oklahoma Western District

October 22, 2021

Fourth Circuit Would Discharge CERCLA Claims if Pollution Occurred Before Filing

Maryland district judge predicts that the Fourth Circuit would adopt a debtor-friendly rule more broadly discharging environmental claims when the acts occurred before chapter 11.

4th Circuit

October 21, 2021

Disclosing a Lawsuit Only in the SOFA Won’t Result in Abandonment, Circuit Says

Disclosing a lawsuit in the SOFA and discussing the suit with the trustee was no substitute for listing the suit among a debtor’s assets, the Ninth Circuit held.

9th Circuit

October 14, 2021

Refusing to Release an Attachment After Filing Is No Stay Violation Following Fulton

Pennsylvania’s Judge Conway hints that failure to stop proceedings after bankruptcy can be an automatic stay violation, even after Fulton.

3rd Circuit, Pennsylvania, Pennsylvania Middle District

October 05, 2021

Surety Bonds Aren’t Executory Contract and Can’t Be Assumed, District Judge Says

An irrevocable surety bond isn’t executory because it gives the bonding company no further obligations to the debtor.

5th Circuit, Louisiana

October 04, 2021

On an ‘Involuntary,’ Denial of Summary Judgment Doesn’t Mean the Claim Is Disputed

The Iqbal and Twombly standards don’t apply to involuntary petitioners who are required to use Official Form 105.

5th Circuit, Texas, Texas Southern District

October 01, 2021

Third Circuit Makes Strict Rules Before Subrogation Rights Kick In

There can be no question about whether the beneficiary of a surety bond has been ‘paid in full’ before the surety has subrogation rights.

3rd Circuit

September 30, 2021

A Claim Objection Can Head Off Election of a Permanent Chapter 7 Trustee

A creditor can’t elect a trustee to pick its adversary in a lawsuit, Bankruptcy Judge Gunn says.

D.C. Circuit