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ABI Journal

January 25, 2024

Avoidance Actions Are Estate Property that May Be Sold, the Fifth Circuit Says

The Fifth Circuit answered one of the two questions being posed at this year’s Duberstein Moot Court Competition.

5th Circuit

January 05, 2024

U.S. Trustee Dodged Payment of Attorneys’ Fees Under the Equal Access to Justice Act

The Sixth Circuit holds that a debtor cannot recover attorneys’ fees from the U.S. Trustee under the EAJA in a contested matter, but leaves open the possibility of liability for counsel fees in a losing adversary proceeding.

6th Circuit

January 04, 2024

With Reservations, a Chapter 11 Debtor with No Financial Distress Avoids Dismissal

Bankruptcy Judge Whitley says that a no-opt-out plan for a solvent debtor might violate creditors’ due process and jury trial rights.

4th Circuit, North Carolina, North Carolina Western District

December 11, 2023

Finality of a Contempt Order Drawn into Question in the Eleventh Circuit

Some authority from the Supreme Court suggests that a contempt order without imposition of attorneys’ fees would not be final in a bankruptcy case.

11th Circuit

December 05, 2023

Supreme Court Seems Dubious About Purdue’s Nonconsensual, Nondebtor Releases

At oral argument, the justices were focused on whether the word “appropriate” in Section 1123(b)(6) allows chapter 11 plans to include nonconsensual, nondebtor third-party releases.

Supreme Court

November 29, 2023

Dispute over Part of a Claim Disqualifies an Involuntary Petitioner

The 2005 amendment to Section 303(b)(1) disqualifies an involuntary petitioner if there is a dispute as to even part of the creditor’s claim.

2nd Circuit, New York, New York Southern District

November 13, 2023

In MOAC on Remand, the Second Circuit Vacates the Order Assigning the Lease

The Second Circuit is remanding to district court for a ruling on the relief available to the landlord, given that the sale closed years ago.

2nd Circuit

November 09, 2023

Setoff Can’t Be Raised as a Defense to Receipt of a Fraudulent Transfer

The Madoff case makes more law: A claim against a bankrupt estate can’t be set off against liability for receipt of a fraudulent transfer because one arose before bankruptcy and the other arose after.

2nd Circuit, New York, New York Southern District

October 25, 2023

Bankruptcy Judge Refuses to Enforce an Arbitration Agreement

An exculpation clause in a chapter 11 plan protected the owner’s counsel from a malpractice suit.

6th Circuit, Ohio, Ohio Southern District

October 23, 2023

Labor Union Beats Back a Motion to Transfer Venue to the Bankruptcy Court

A district judge, who had been a bankruptcy and BAP judge, narrowly interpreted 28 U.S.C. § 1412 as being inapplicable to pending suits only “related to” the bankruptcy.

10th Circuit, Kansas