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ABI Journal

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 District

April 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, Colorado

April 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 Circuit

March 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 Circuit

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

March 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 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