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March 27, 2020

Delaware District Court Upholds Discharge of Environmental Fines in Chapter 11
Environmental fines are discharged in chapter 11 because they do not result from pecuniary loss.
3rd Circuit, Delaware

March 26, 2020

In the Minority, 8th Circuit BAP Disregards Equitable Considerations in Allowing Default Interest
As long as the rate is legal under state law, considerations of equity will not allow a court to disallow default interest to an oversecured creditor under Section 506(b).
8th Circuit

March 24, 2020

Ninth Circuit BAP Applies Taggart to Violations of the Automatic Stay
Taggart left open the question of whether the ‘no objectively reasonable basis’ standard for discharge violations also applies to contempt of the automatic stay.
9th Circuit
Lawyer for Madoff Customer Slapped with $57,347 Discovery Sanction
Calling the Madoff trustee a liar and basing a discovery motion on facts known to be false resulted in sanctions under Rule 37(a)(5)(B).
2nd Circuit, New York, New York Eastern District

March 23, 2020

Another Case Shows the Need to Provide Remedies for Discharge Violations
Discharge was violated, but sanctions are likely out of reach.
7th Circuit

March 19, 2020

Mortgage Servicer Hit with $300,000 in Actual and Punitive Damages for Stay Violation
The creditor was guilty of an automatic stay violation, but Taggart insulated the creditor from liability for a discharge violation for continuation of the same conduct.
9th Circuit, Nevada

March 18, 2020

Ninth Circuit Equivocates on ‘Collection Injunctions’ in Individual Chapter 11s
Dissenter in the Ninth Circuit says that utilizing provisions in the Bankruptcy Code is not bad faith barring confirmation.
9th Circuit

March 11, 2020

Eighth Circuit Applies Cap on Lease Claims to a Fraudulent Transfer Judgment
Appeals court had sympathy for the debtor by disallowing part but not all of a judgment for receipt of a fraudulent transfer with ‘actual intent.’
8th Circuit

March 10, 2020

Fifth Circuit Rules that the Penalty under the ACA Isn’t a Priority Tax Claim
The exaction for failure to purchase health insurance isn’t an excise tax ‘on a transaction’ under Section 507(a)(8)(E)(i).
5th Circuit

March 03, 2020

Bankruptcy Discharge Cuts Off Future Liability on a Guaranty
Courts are split on whether a personal guaranty survives bankruptcy.
6th Circuit