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ABI Journal

May 15, 2023

‘Person Aggrieved’ Isn’t the Proper Standard for Bankruptcy Appeals, Circuit Says

Ninth Circuit says that the ‘person aggrieved’ standard for appellate standing was superseded by Article III standing on adoption of the Bankruptcy Code in 1978.

9th Circuit

May 12, 2023

Courts May Bypass Equitable Mootness to Rule on the Merits, Fifth Circuit Says

Even if an appeal is equitably moot, the appellate court nonetheless has appellate jurisdiction. Equitable mootness is prudential, not jurisdictional.

5th Circuit

May 10, 2023

Denial of Withdrawal of the Reference Isn’t a Final, Appealable Order, Circuit Says

An appeal from an interlocutory order can’t be made final by the district court’s entry of judgment on the first appeal.

10th Circuit

May 05, 2023

‘Preponderance’ Replaced ‘Clear and Convincing’ on Adoption of the Bankruptcy Code

The Seventh Circuit explained how preponderance of the evidence became the standard of proof for turnovers and dischargeability when the Bankruptcy Code replaced the Bankruptcy Act.

7th Circuit

April 26, 2023

Supreme Court Hears Oral Argument on Tribal Sovereign Immunity

It appears as though the Supreme Court will decide Lac du Flambeau based entirely on textual analysis of Section 106(a), which does not explicitly abrogate sovereign immunity as to Native American tribes.

Supreme Court

April 25, 2023

Lack of Reliance on Representation Isn’t a Defense to a Constructive Fraudulent Transfer

Damages for a constructively fraudulent transfer were the difference between what the buyer paid and what the business was really worth, based on accurate income and expenses.

2nd Circuit, New York, New York Eastern District

April 24, 2023

Rule 2004 Discovery Is Available to Creditors in Chapter 15 Cases, California Judge Says

Judge Bason of Los Angeles would permit a creditor in ‘limited circumstances’ to undertake Rule 2004 discovery in a chapter 15 case to further the court’s ‘assistance of the foreign main proceeding.’

9th Circuit, California

April 19, 2023

Supreme Court Holds: § 363(m) Isn’t Jurisdictional; It’s a Limitation on Appellate Relief

The Supreme Court’s MOAC decision contains language casting doubt on the validity of the doctrine of equitable mootness.

Supreme Court

April 18, 2023

Notification of Bankruptcy Requires Lifting Garnishment of Post-Petition Income

Although the automatic stay does not require turning over property garnished before bankruptcy, a creditor may not continue garnishing property after filing, Judge Burgess says.

11th Circuit, Florida, Florida Middle District

March 29, 2023

A Trust Didn’t Defeat a Prior, Perfected Security Interest in Accounts Receivable

The district court characterized the agreement not as creating a trust but as a device designed to win priority over a prior, perfected security interest.

5th Circuit, Texas, Texas Northern District