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ABI Journal

May 31, 2019

One Preference Won’t Prevent Another from Being a Preference

A joint check agreement signed in the preference window is a preference, two Virginia judges say.

4th Circuit, Virginia, Virginia Eastern District

May 21, 2019

Supreme Court Agrees to Rule on What Is or Is Not a ‘Final, Appealable’ Order

For now, the high court ducks an important automatic stay question for chapter 13 debtors.

Supreme Court

May 20, 2019

Did Segal Survive Butner in Defining Property of the Estate?

Judge Perkins in Illinois says the ‘sufficiently rooted’ test from Segal v. Rochelle did not survive Butner and the adoption of the Bankruptcy Code.

7th Circuit, Illinois, Illinois Central District

May 20, 2019

Licensee May Continue Using a Trademark after Rejection, Supreme Court Rules

Supreme Court gets around to overruling Lubrizol almost 35 years later.

Supreme Court

May 14, 2019

Circuits Split on Bankruptcy Jurisdiction for Social Security, Medicare Suits

Fifth Circuit rejects the ‘recodification canon’ to divest bankruptcy courts of jurisdiction over Social Security suits.

5th Circuit

May 10, 2019

Disclosing an Asset in the Wrong Place Won’t Invoke Judicial Estoppel, Circuit Says

Second Circuit won’t give a defendant a windfall if the debtor scheduled the lawsuit in the wrong place but told the trustee and the court.

2nd Circuit

May 09, 2019

Creditors of LPs or LLCs Can’t Sue for Breach of Fiduciary Duty

Creditors lack standing in Delaware and other states for derivative liability suits against officers and managers of LPs and LLCs.

3rd Circuit, Delaware

May 01, 2019

Equity Can’t Alter the Three Petitioning Creditors Requirement, First Circuit Rules

Even if a debtor has committed fraud, at least three creditors still must join an involuntary petition if the debtor has 12 or more creditors.

1st Circuit

April 30, 2019

Ninth Circuit Bars Third Parties from Seeking Damages for Dismissal of an ‘Involuntary’

If the involuntary corporate debtor was deadlocked and unable to act, the dissenter would have permitted a 50% shareholder to seek damage for dismissal of the petition.

9th Circuit

April 26, 2019

Mothers Owed Child Support Weren’t Entitled to Notice in Father’s Bankruptcy, Circuit Says

Fifth Circuit in substance says that state law overcomes the Bankruptcy Code’s broad definition of who’s a creditor entitled to notice.

5th Circuit