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ABI Journal

October 14, 2021

Refusing to Release an Attachment After Filing Is No Stay Violation Following Fulton

Pennsylvania’s Judge Conway hints that failure to stop proceedings after bankruptcy can be an automatic stay violation, even after Fulton.

3rd Circuit, Pennsylvania, Pennsylvania Middle District

October 01, 2021

Third Circuit Makes Strict Rules Before Subrogation Rights Kick In

There can be no question about whether the beneficiary of a surety bond has been ‘paid in full’ before the surety has subrogation rights.

3rd Circuit

September 30, 2021

A Claim Objection Can Head Off Election of a Permanent Chapter 7 Trustee

A creditor can’t elect a trustee to pick its adversary in a lawsuit, Bankruptcy Judge Gunn says.

D.C. Circuit

September 22, 2021

Third Circuit Makes More Rules on the Proper Scope of Asbestos Channeling Injunctions

The Third Circuit made more rules to decide whether an insurance company can be insulated from failure-to-warn claims by the channeling injunction in a chapter 11 ‘asbestos’ plan.

3rd Circuit

September 21, 2021

Texas Judge Disagrees with Second Circuit on Sanctions for Violating Rule 3002.1

Bankruptcy Judge Eduardo Rodriguez explained why the Second Circuit was wrong in ruling that violators of Rule 3002.1 are only liable for compensatory damages.

2nd Circuit, New York, New York Southern District

September 17, 2021

Affirmance Shows that Merit Management Has Been Gutted in the Second Circuit

Properly structuring a leveraged refinancing in the Second Circuit can avoid attack as a fraudulent transfer despite the Supreme Court’s effort at narrowing the ‘safe harbor.’

2nd Circuit, New York, New York Southern District

September 15, 2021

Appeal from a ‘PPP’ Loan Dismissed as Equitably Moot

Would Section 364(c) validate a “PPP” loan even if an order compelling the SBA to make the loan was reversed on appeal?

9th Circuit, Arizona

September 02, 2021

Bankruptcy Courts Aren’t Prohibited from Entering Mareva Injunctions

The Supreme Court’s Grupo Mexicano decision doesn’t bar a bankruptcy court from freezing a defendant’s assets prior to judgment in a fraud action, Judge Sontchi says.

3rd Circuit, Delaware

August 11, 2021

NC Appellate Court Rules Plans Must Be Unambiguous to Hold a Creditor in Civil Contempt, Citing Taggart

After Taggart v. Lorenzen, plans, orders and injunctions must be highly specific to hold an offending creditor in contempt.

4th Circuit, North Carolina, North Carolina Eastern District

August 09, 2021

‘Cert’ Petitions Raise Equitable Mootness and Federal Preemption in the Supreme Court

‘Cert’ petitions presenting two bankruptcy issues worthy of review by the Supreme Court will be considered by the justices at the ‘long conference’ on September 27.

Supreme Court