April 08, 2020
Critical Vendor Motion Heads for the Second Circuit
New York district court upholds a typical critical vendor order.
2nd Circuit, New York, New York Southern DistrictApril 07, 2020
Barton Doctrine Didn’t Protect a Special Master from a Preference Suit
Judge Brown of Denver elucidates a third exception to the Barton doctrine barring suits against court-appointed officials.
10th Circuit, ColoradoApril 03, 2020
Claims Subject to Bona Fide Dispute Are Included in Deciding Eligibility for Chapter 13
If a creditor objects to chapter 13 eligibility in good faith, the court may look behind the debtor’s schedules to decide whether the debt exceeds the cap.
9th CircuitMarch 30, 2020
Puerto Rico Bondholders Lose Another Appeal in the First Circuit
The First Circuit shows no inclination to allow creditors to bust out of the PROMESA restructuring of Puerto Rico’s debt.
1st CircuitMarch 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, DelawareMarch 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 CircuitMarch 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 CircuitMarch 24, 2020
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 DistrictMarch 23, 2020
Another Case Shows the Need to Provide Remedies for Discharge Violations
Discharge was violated, but sanctions are likely out of reach.
7th CircuitMarch 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