June 06, 2019

Electric Utility’s Customers Denied Official Committee Status in Chapter 11

Are utility customers entitled to an official committee because they will fund the reorganization plan? Judge Montali says ‘no.’

9th Circuit, California, California Northern District

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

April 22, 2019

Standards for a Future Claimants’ Representative Are Those for a Guardian Ad Litem

Prior service as a future claimants’ representative was reason for a new appointment, not a disqualification, Judge Bonapfel says.

11th Circuit, Georgia, Georgia Northern District

January 08, 2019

Sixth Circuit Enforces a ‘Carveout’ for Professionals after Conversion to Chapter 7

The appeals court barred the secured lenders from renegotiating a carveout when a chapter 11 reorganization failed.

6th Circuit

April 30, 2018

Non-Bankrupt Nonprofit Entities Are Not Subject to Substantive Consolidation

Eighth Circuit insulates parishes and church schools from substantive consolidation.

8th Circuit

March 12, 2018

‘Local vs. National’ Rate Controversy Reemerges in a Catholic Diocese Reorganization

Montana judge cuts committee counsel’s interim allowance to rates charged by debtor’s counsel.

9th Circuit, Montana

January 02, 2018

Delaware District Judge Seemingly Splits with Second Circuit on the Safe Harbor

Delaware district and bankruptcy judges now disagree with the Second Circuit’s holding that the federal safe harbor preempts state fraudulent transfer law.

3rd Circuit, Delaware

November 10, 2017

No Punitive Damages Under Delaware Law to Remedy a Fraudulent Transfer

Choice of law isn’t an affirmative defense that can be waived, Judge Gross says.

3rd Circuit, Delaware

November 08, 2017

Fraudulent Transfer Claims Aren’t Capped by Creditors’ Losses

Delaware’s Judge Gross pens another controversial opinion in PAH Litigation Trust.

3rd Circuit, Delaware

October 19, 2017

Using a U.S. Bank Precludes a Foreigner from Winning Dismissal Based on Comity

Stay violation and turnover suits held proper extraterritorial application of U.S. law.

2nd Circuit, New York, New York Southern District