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ABI Journal

August 26, 2025

Second Circuit Extends the Section 546(e) Safe Harbor to Cover Foreign Law

Second Circuit dismisses the last of 300 lawsuits by foreign liquidators to recover $6 billion for defrauded Madoff investors.

2nd Circuit

August 21, 2025

A Disappointed Bidder Didn’t Have Prudential Standing in a Chapter 7 Case

In a chapter 7 case, a disappointed bidder wasn’t required to show Article III standing but was still required to demonstrate prudential standing as falling within the class of persons protected by Section 363.

New Mexico

August 19, 2025

Allowed Claim Can’t Be Used Offensively, Second Circuit Says

Second Circuit barred offensive use of claim preclusion based on ‘fairness’ but hinted that offensive claim preclusion might never be permitted.

2nd Circuit

August 06, 2025

Trial-Ready Case Remanded to State Court, Not Transferred to Bankruptcy Court

District judge was reluctant to have the bankruptcy court decide whether a suit removed to federal court should be remanded to the state trial court.

Connecticut

August 04, 2025

On a Split, the Deadline for Withdrawals Is 30 Days, not the 90 Days in Rule 9027

The time to withdraw a lawsuit to bankruptcy court is governed by a general federal statute that doesn’t refer to bankruptcy, not the Bankruptcy Rule that specifically governs withdrawals to bankruptcy cases, a district judge says.

Texas Northern District

July 31, 2025

A Suit Nominally Against a Debtor Does/Doesn’t Violate the Discharge Injunction

In the Tenth Circuit, there’s a workaround for courts that believe it’s not possible to modify the statutory discharge injunction.

Kansas

July 02, 2025

A Promise Not to Enforce a Judgment Meant There Was No Discharge Violation

The inability to modify a Section 524(a) discharge put the Ninth Circuit BAP in a bind.

9th Circuit

July 01, 2025

‘Serious Concerns’ About a Conflict Aren’t Enough to Disqualify a Trustee’s Counsel

A firm wasn’t disqualified when attorneys who left the firm long ago had represented an adversary in a possibly similar engagement.

11th Circuit, Florida, Florida Southern District

June 27, 2025

Debtor Granted Absolution for a 10-Day Delay in Serving a $40 Million Preference Suit

Although there wasn’t ‘good cause’ to excuse late service of a summons and complaint, the bankruptcy court salvaged a large preference by exercising discretion and granting a 10-day expansion of the 90-day deadline.

2nd Circuit, New York, New York Southern District

June 25, 2025

Comparative Fault Doesn’t Require Reduced Attorneys’ Fees for Discharge Violations

Seventh Circuit holds that comparative fault requires a reduction in compensatory damages for a discharge violation but not for a debtor’s attorneys’ fees.

7th Circuit