March 20, 2019

An Adroitly Drafted Makewhole Is Allowable in Bankruptcy, New York Judge Says

Judge Bernstein distinguishes a Second Circuit opinion to rule that a makewhole premium is allowable in bankruptcy.

2nd Circuit, New York, New York Southern District

Nonjudicial Foreclosure Is Not Subject to the FDCPA, Supreme Court Rules

Supreme Court says that activities not required by state law in nonjudicial foreclosure may be covered by the FDCPA.

Supreme Court

March 19, 2019

The Rule 3001(f) Presumption of Claim Validity Doesn’t Include the Value of Collateral

California judge differs with the Third Circuit regarding the presumption of collateral value flowing from a lender’s proof of secured claim.

9th Circuit, California, California Eastern District

March 11, 2019

A Pension Withdrawal Claim Arises Before Withdrawal Occurs, Manhattan Judge Says

Bankruptcy Judge Wiles politely says that the Sixth Circuit reached the correct result for the wrong reason.

2nd Circuit, New York, New York Southern District

March 07, 2019

Defectively Executed Mortgages Are [Still] Avoidable in Ohio

Sixth Circuit distinguishes between a trustee’s powers as a bona fide purchaser compared to a hypothetical judicial lienholder.

6th Circuit

February 21, 2019

Solvent Debtor Required to Pay Default Interest 9% Above Prime

Equity didn’t favor chopping down the default rate when the debtor emerged from bankruptcy with substantial equity and all creditors were paid in full.

2nd Circuit, New York, New York Southern District

February 20, 2019

Huge Liquidated Damages Held Unenforceable in an Aircraft Lease

Although the parties were sophisticated, New York judge finds that a liquidated damages clause was actually an unenforceable penalty.

2nd Circuit, New York, New York Southern District

February 13, 2019

An Objection to Third-Party Releases Must Be Raised in Bankruptcy Court

A non-objecting creditor is bound by a third-party release even if the release may have been improper.

5th Circuit, Texas, Texas Southern District

February 12, 2019

Another Circuit Allows an Unsecured Claim for Contractual Attorneys’ Fees

The circuits agree, but the lower courts disagree, on the allowance of post-petition attorneys’ fees based on contract.

4th Circuit

February 05, 2019

A Judgment Lien on Entireties Property Is Avoidable in Missouri, Eighth Circuit Says

A judicial lien impairing an exemption is avoidable in some states under Section 522(f), but not in others.

8th Circuit