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ABI Journal

July 02, 2019

Third Circuit Expands the Flexible Notion of ‘Finality’ on Bankruptcy Appeals

The Third Circuit’s new opinion on ‘finality’ will be cast in doubt depending on how the Supreme Court rules in Ritzen.

3rd Circuit

June 28, 2019

LLC Managers Cannot Jettison Duties of Good Faith and Fair Dealing

Arizona Supreme Court allows LLCs to sue managers and members for violation of fiduciary duties.

June 26, 2019

First Circuit Nixes Another Attempt at Unraveling Puerto Rico’s Debt Arrangement

The logical court to challenge the constitutionality of PROMESA isn’t the PROMESA court itself.

1st Circuit

June 21, 2019

Seventh Circuit Solidifies a Circuit Split on the Automatic Stay

Disagreeing with the Tenth and D.C. Circuits and siding with four other circuits, the Seventh Circuit rules that passively holding estate property violates the automatic stay.

7th Circuit

June 19, 2019

Rule 2004 Discovery Barred for Use in Litigation Outside Bankruptcy Court

Judge Sean Lane publishes an opinion to nip an improper discovery tactic in the bud.

2nd Circuit, New York, New York Southern District

June 18, 2019

Failure to Petition the Circuit Court for a Direct Appeal Requires Dismissal

Overruling its own precedent, the Seventh Circuit dismissed an appeal when the appellant had not filed a motion in the appeals court for permission to undertake a direct appeal, even though the bankruptcy court had certified the question to the circuit.

7th Circuit

June 12, 2019

San Francisco Judge Slaps Down FERC on Rejection of Power Purchase Agreements

Judge Montali accuses FERC of a power grab to take the bankruptcy court’s right to rule on the rejection of executory contracts.

9th Circuit, California, California Northern District

June 05, 2019

Delay in Appointment of a Foreign Representative Isn’t Fatal to Chapter 15 Recognition

Allegedly repudiating U.S. dollar obligations won’t preclude a finding of property in the U.S., Judge Lane rules.

2nd Circuit, New York, New York Southern District

June 04, 2019

Fifth Circuit Muses on the Split over Pleading Standards for Fraudulent Schemes

Fifth Circuit generally holds that heightened pleading standards in Rule 9(b) do not apply to claims that don’t rely on fraudulent activity, even though the overall scheme may be fraudulent.

5th Circuit

June 03, 2019

Supreme Court Rejects Strict Liability for Discharge Violations

‘No objectively reasonable basis’ is the high court standard to find civil contempt for violating the discharge injunction.

Supreme Court