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ABI Journal

August 29, 2023

Eleventh Circuit Narrowly Reads a State Fee-Shifting Statute

The lawsuit was under federal law, not state law, even though Section 544(b)(1) incorporated state fraudulent transfer law.

11th Circuit

August 25, 2023

Eighth Circuit Definitively Holds: Avoidance Actions Are Estate Property and Can Be Sold

Now a circuit judge, a former bankruptcy judge makes quick work of a troublesome issue about property of the estate.

8th Circuit

August 22, 2023

Three Circuits Agree: The ACA’s ‘Penalty’ Is Actually a Tax Entitled to Priority

Looking beyond the label assigned by the Affordable Care Act, three circuits have now held that failure to pay the ‘individual mandate’ for purchasing health insurance gave rise to a tax entitled to priority in bankruptcy.

6th Circuit

August 21, 2023

Government Bar Date Applies to DOE Loans Even When the Servicer Is Private

As long as the student loan is owing to the government, the Fifth Circuit holds that the government bar date applies even when the servicer is a private company.

5th Circuit

August 15, 2023

Another Article III Judge Won’t Let Bankruptcy Stop Suits Against Nondebtors

The same day the Supreme Court decided to hear Purdue, a district judge on Long Island, N.Y., sent dozens of long-stayed sexual abuse cases back to state court where the debtor is not a named defendant.

2nd Circuit, New York, New York Eastern District

August 09, 2023

Till Doesn’t Require Starting with the Prime Rate, Eighth Circuit Says

The Treasury rate and prime rate are both proper starting points for pegging post-petition interest rates, but starting with Treasurys requires a larger risk premium.

8th Circuit

August 07, 2023

Default Rates Imposed Before Filing Must Be Cured to Assume a Loan Agreement

Monetary defaults, including default rates and fees, must be cured before a debtor may assume a loan agreement, New York’s Judge Bentley rules.

2nd Circuit, New York, New York Southern District

August 01, 2023

Government Asks the Supreme Court to Halt Consummation of Purdue’s Chapter 11 Plan

Rebuffed in the Second Circuit, the Solicitor General is asking the Supreme Court to stay issuance of the mandate that would allow Purdue Pharma to consummate its chapter 11 plan.

Supreme Court

July 27, 2023

All Future Liability on a Lease Counted for Subchapter V Eligibility

Future liability on a lease was counted as a liquidated, noncontingent debt in calculating whether the Subchapter V debtor had more than $7.5 million in debt.

4th Circuit, Virginia, Virginia Eastern District

July 25, 2023

Section 959(a) Isn’t an Exception to the Barton Doctrine, 9th Circuit BAP Says

Section 959(a) doesn’t permit suing a trustee for breach of fiduciary duty outside of bankruptcy court.

9th Circuit