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ABI Journal

July 14, 2021

Being an ‘Officer’ Disqualifies Someone from a KERP, New York District Judge Says

Officers are presumptively disqualified from KERPs, “absent a strong showing that they do not perform any significant role in management,” a district judge in New York says.

2nd Circuit, New York, New York Southern District

June 08, 2021

Federal Common Law Doesn’t Define a Business Trust Eligible for Chapter 11

Recent Supreme Court authority supports the conclusion by Delaware’s Judge Sontchi that law from the jurisdiction of incorporation, not federal common law, determines what is or isn’t a business trust eligible for chapter 11.

3rd Circuit, Delaware

January 11, 2021

Guarantee of a Lease Survives Rejection if the Tenant Remains in Possession

District judge explains why veil-piercing is easier to prove in Michigan than elsewhere.

6th Circuit

January 07, 2021

Dissolved Corporation May Not File to Reorganize in Chapter 11, Only to Liquidate

Dissolved by forfeit, a corporation cannot reinstate a charter and may resort to bankruptcy only to liquidate, Judge Eduardo Rodriguez says.

5th Circuit, Texas, Texas Southern District

December 01, 2020

A Zombie Was Sufficiently Alive to Make Affiliates Liable for ERISA Underfunding

The Eleventh Circuit makes federal common law to nail companies for a deceased affiliate’s pension underfunding.

11th Circuit

December 02, 2019

First Circuit Explains How to Avoid Liability for an Underfunded Pension Plan

To avoid liability for an underfunded pension plan, the First Circuit describes a structure for investors to employ when buying a sick company

1st Circuit

September 23, 2019

Circuit Finds No Successor Liability from Buying Assets and Continuing the Business

Continuing the business after buying the assets from the lender at a foreclosure sale doesn’t bring successor liability.

8th Circuit

July 24, 2019

Veto Right Made All Directors Liable for Bad Decisions by a Few Directors

Business judgment rule failed to protect directors of a Georgia bank for approving bad loans.

11th Circuit

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

August 29, 2018

A Receiver Can Bar the Old Board from Filing a Bankruptcy Petition

By removing the incumbent board, a receiver can bar the old board from filing a bankruptcy petition, the Ninth Circuit holds.

9th Circuit