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

February 01, 2019

Puerto Rico Retirement System Bondholders Win Their Security Interest Back

First Circuit reverses, upholding the validity of bondholders’ security interests in $2.9 billion of collateral.

1st Circuit

January 31, 2019

Judge Declines to Apply ‘Earmarking’ Defense to a GM Lien Avoidance

‘Old’ GM lenders lose again while attempting to avoid the consequences of a $1.5 billion mistake.

2nd Circuit, New York, New York Southern District

January 29, 2019

Fifth Circuit Differentiates Between Derivative Claims and Claims Belonging to a Creditor

Sometimes, a third party’s action can harm the debtor, but a creditor can still prosecute an independent claim against the third party.

5th Circuit

January 25, 2019

Newly Filed Certiorari Petitions Raise Circuit Splits on ‘Finality’ and the Automatic Stay

The Supreme Court is invited to resolve a circuit split and decide whether inaction can violate the automatic stay.

Supreme Court

January 24, 2019

The Emily Litella Principle Governs the Withdrawal of Proofs of Claim

Withdrawing a proof of claim will not divest the bankruptcy court of jurisdiction to try an avoidance action without a jury, Judge Bernstein says.

2nd Circuit, New York, New York Southern District

January 23, 2019

Disallowing Part of a Claim Doesn’t Make the Claim Impaired, Fifth Circuit Says

Newly appointed circuit judge uses ancient English law to illuminate the Bankruptcy Code.

5th Circuit