April 05, 2019

Final Orders Allowed in Preference Suits Against Defendants Who Didn’t File Claims

Following dicta in Bellingham, Judge Collins finds no power to enter a final order in a fraudulent transfer suit against a defendant who did not consent.

9th Circuit, Arizona

March 29, 2019

Puerto Rico Bondholders Can’t Compel Payment During Bankruptcy, First Circuit Says

First Circuit interprets chapter 9 and PROMESA to permit but not compel payments to special revenue bondholders during debt arrangement proceedings.

1st Circuit

March 28, 2019

Circuit Upholds Dismissal of Suits to Restrict Puerto Rico’s Use of Tax Revenue

First Circuit bars use of declaratory judgments restricting Puerto Rico’s use of tax revenues.

1st Circuit

March 22, 2019

After 12 Losses, Will Madoff Customers Stop Pursuing Claims Belonging to the Estate?

New York district judge is the most recent court to uphold an injunction implementing a $7.2 billion Madoff settlement.

2nd Circuit, New York, New York Southern District

March 20, 2019

Nonjudicial Foreclosure Is Not Subject to the FDCPA, Supreme Court Rules

Supreme Court says that activities not required by state law in nonjudicial foreclosure may be covered by the FDCPA.

Supreme Court

March 15, 2019

Reading Stern Narrowly, Delaware Judge to Issue Final Order in Fraudulent Transfer Suit

Judge Sontchi declines to rule that 28 U.S.C. § 157 is unconstitutional by denominating fraudulent transfer suits as ‘core’ proceedings.

3rd Circuit, Delaware

March 14, 2019

Adversary Proceeding to Enjoin FERC Remains in Bankruptcy Court

District judge won’t withdraw the reference when PG&E rejects power purchase agreements.

9th Circuit, California, California Northern District

March 07, 2019

Defectively Executed Mortgages Are [Still] Avoidable in Ohio

Sixth Circuit distinguishes between a trustee’s powers as a bona fide purchaser compared to a hypothetical judicial lienholder.

6th Circuit

March 06, 2019

A Creditor Must Tell a Non-Bankruptcy Court to Stop Violating the Stay

A creditor must attempt to stop a state court from violating the stay, the Sixth Circuit BAP holds.

6th Circuit

March 05, 2019

Seventh Circuit Rules that Section 363(m) Doesn’t Render Appeals Moot

Seventh Circuit overrules two precedents holding that Section 363(m) renders appeals moot.

7th Circuit