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ABI Journal

April 20, 2018

Fully Encumbered Property Is Not a Debtor’s Asset, First Circuit Says

Perplexing opinion may only apply to the status of assets before bankruptcy.

1st Circuit

April 19, 2018

Interest at the State Rate Applies to Pre-Petition Judgments Found Nondischargeable

The rate of post-judgment interest on a nondischargeable debt depends on whether there was a judgment before or after filing, the Ninth Circuit BAP says.

9th Circuit

April 12, 2018

Tribune Creditors Seek Reconsideration on Implied Preemption by the ‘Safe Harbor’

Following a suggestion made by two Supreme Court justices, Tribune creditors ask the Second Circuit to recall the mandate and remand for reconsideration in district court.

Supreme Court

April 04, 2018

Supreme Court’s Second ‘Safe Harbor’ Case Is in Limbo

Two justices recommend that the Second Circuit reconsider the ‘Tribune’ safe harbor decision in light of Merit Management.

Supreme Court

March 29, 2018

State Law, Not Filing Date, Governs Distributions to Co-Owners, Fifth Circuit Says

The distributive share to co-owners is not fixed as of the filing date under Section 363(j).

5th Circuit

March 28, 2018

Madoff Opinions Ease Pleading Requirements in Suits Against Subsequent Transferees

Bankruptcy Judge Vyskocil holds that alter ego need not be alleged to recover from a corporation’s sole shareholder as the beneficiary of a fraudulent transfer.

2nd Circuit, New York, New York Southern District

March 27, 2018

Rule 3001(c)(2)(D) Sanction Was 16 Times the Amount in Controversy

Innocent mistake turns into a $6,000 sanction for ‘willful failure to cooperate.’

10th Circuit, Kansas

March 21, 2018

Federal Common Law of Constructive Trust Works When State Law Won’t

Delaware judge shows sympathy for a creditor being stiffed by the debtor.

3rd Circuit, Delaware

March 20, 2018

Flip Clauses in Swaps Held Enforceable by District Judge in New York

For swaps, the Section 560 safe harbor overrides the anti-ipso facto provisions in the Bankruptcy Code.

2nd Circuit, New York, New York Southern District

March 13, 2018

Unlicensed Debt Collectors May File Proof of Claim Despite State Law

Midland Funding expanded to allow unlicensed debt collectors to file claims.

4th Circuit, Maryland