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ABI Journal

March 09, 2020

To Avoid U.S. Trustee Fees, Court Liberally Allows Closing a Case After Confirmation

Pending adversary proceedings don’t preclude a finding that the chapter 11 case has been ‘fully administered,’ thus allowing entry of a final decree and cutting off further fees owing to the U.S. Trustee Program.

2nd Circuit, Connecticut

February 25, 2020

Supreme Court Uses a Bankruptcy Case to Limit the Use of Federal Common Law

High court rules that federal courts may make federal common law only to protect ‘uniquely’ federal interests.

Supreme Court

February 24, 2020

Fifth Circuit’s Seminal Reed Decision Not Followed in Chapter 13

Bankruptcy judge finds no statutory power for a chapter 13 trustee to prosecute a lawsuit that the debtor was judicially estopped for pursuing.

5th Circuit, Louisiana, Louisiana Eastern District

February 19, 2020

District of Columbia Rejects the Jewel Doctrine, Joining California and New York

Lawyers leaving a bankrupt firm are not required to pay over profits on hourly matters they take to their new firms.

D.C. Circuit

February 18, 2020

Bankruptcy Court Still Has Power to Enter Final Judgments by Default after Wellness

Failure to respond to a well-pleaded complaint implies consent for the bankruptcy court to enter final judgment in an avoidance action, Judge Glenn rules.

2nd Circuit, New York, New York Southern District

February 17, 2020

Bankruptcy Court Had ‘Core’ Jurisdiction over Third-Party Dispute, Third Circuit Says

The bankruptcy court had ‘core’ jurisdiction over a dispute between two nondebtor third parties because the litigation involved the interpretation of a financing order.

3rd Circuit

February 13, 2020

Seventh Circuit: Reclamation Claims Are Subordinate to DIP Financing

The 2005 amendments to Section 546(c) departed from state law under UCC § 2-702 by creating a federal rule making reclamation claims subordinate to existing secured claims and DIP financing.

7th Circuit

January 22, 2020

Reservation of Rights Won’t Prevent Waiver of Right to Jury Trial

The general rule in Langenkamp calling for the waiver of Seventh Amendment rights prevails over the unique facts of a case.

5th Circuit, Texas, Texas Western District

January 13, 2020

Supreme Court Won’t Hear a Case to Compel Paying Puerto Rico Bondholders Currently

Supreme Court let a First Circuit opinion stand that barred bondholders from compelling payment during Puerto Rico’s restructuring under PROMESA.

Supreme Court

January 10, 2020

Fifth Circuit Stretches Equitable Notions to Bend Plain Language

A nonprecedential opinion applies Fifth Circuit authority to achieve a result that’s equitable for the debtor and creditors, and maybe also for a personal injury defendant.

5th Circuit