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ABI Journal

August 11, 2020

Seventh Circuit Bars ‘Objector Blackmail’ in a Class Settlement

The Seventh Circuit uses broad equitable powers to prevent one member of a class from receiving a settlement when appealing an issue applicable to the entire class.

7th Circuit

August 07, 2020

Creditors Have Standing but Not Authority to Pursue Estate Claims, Third Circuit Says

Third Circuit’s Judge Bibas says that courts use the wrong nomenclature when they say that creditors lack standing to pursue claims belonging to the estate. It’s a question of statutory authority, he said, not standing.

3rd Circuit

July 30, 2020

Federal Income Taxes for a ‘Straddle Year’ Are Administrative Priority Claims

On an issue with no appellate authority, a Delaware district judge rules that federal income taxes are administrative claims if filing occurs before the year’s end.

3rd Circuit, Delaware

July 28, 2020

The 2005 Amendments to Section 546(c) Limited the Remedies of Reclamation Creditors

Reclamation creditors no longer have liens or administrative claims if a secured lender sucks up all the value in reclaimed goods.

8th Circuit, Nebraska

July 22, 2020

Second Circuit Broadly Caps Wage Claims Accelerated Before Bankruptcy

Second Circuit prevents ‘artful drafting’ from evading the cap on golden parachutes under Section 502(b)(7).

2nd Circuit

July 15, 2020

Fines for Defrauding Consumers Are Dischargeable in a Corporate Chapter 11 Plan

Courts are divided on discharging fines in a corporate chapter 11 case when the government itself was not defrauded.

2nd Circuit, New York, New York Southern District

July 10, 2020

Eighth Circuit Won’t Impose Unwritten Requirements on Service of a Claim Objection

In the Bankruptcy Rules, a claim objection isn’t treated like a motion for all purposes, the Eighth Circuit says.

8th Circuit

July 08, 2020

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

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

9th Circuit

June 16, 2020

Ninth Circuit Criticizes the Supreme Court’s Kelly v. Robinson

Discovery sanctions are dischargeable under Section 523(a)(7), even when incorporated into a bar disciplinary suspension.

9th Circuit

June 08, 2020

Eleventh Circuit Holds that a Chapter 13 Plan Alone Can’t Assume a Lease or Contract

In the first court of appeals decision on the topic, the Eleventh Circuit holds that the chapter 13 trustee alone has power to assume a lease or contract.

11th Circuit