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ABI Journal

December 05, 2024

Supreme Court Hears Argument on Allowing a Trustee to Sue the IRS for Fraudulent Transfers

Most justices seemed inclined to believe that the waiver of sovereign immunity in Section 106(a) does not abrogate the “actual creditor” requirement in Section 544(b)(1).

Supreme Court

November 15, 2024

Sub V Trustee in Chapter 11 Can’t Be Enlisted to Pursue Avoidance Actions

District judge decides that an individual debtor has standing to appeal conversion from Subchapter V of chapter 11 to chapter 7.

2nd Circuit, New York, New York Southern District

November 06, 2024

Sufficiency of Preference and Fraudulent Transfer Complaints Described by Judge Goldblatt

To defeat motions to dismiss, preference and fraudulent transfer complaints need not contain all the information to be learned in discovery, Bankruptcy Judge Craig Goldblatt says.

3rd Circuit, Delaware

September 20, 2024

The Time Has Come to Reconsider Whether Trustees Are Subject to In Pari Delicto

Bound by circuit precedent, the Eighth Circuit held that a prior receivership does not cleanse the bankruptcy estate of the in pari delicto defense.

8th Circuit

September 19, 2024

Fraudulent Transfer Suit Does Not Require Injury to Creditors, Circuit Says

A trustee has standing and a claim for fraudulent transfer just because a fraudulent transfer erodes assets of the bankrupt estate.

9th Circuit

September 03, 2024

Ninth Circuit Upholds the ‘Ponzi Scheme’ Presumption over a Dissent

A Ninth Circuit dissenter would require the trier of fact to make a finding that the fraudster acted with actual intent to defraud.

9th Circuit

August 22, 2024

Imputed Knowledge Kills the Good Faith Defense of a Subsequent Transferee, Circuit Says

Criminal activities of an agent don’t take the agent’s actions outside of the scope of authority.

5th Circuit

August 20, 2024

Judge Barnes Explained Why Bankruptcy Stays Don’t Require Personal Jurisdiction

Chicago’s Bankruptcy Judge Timothy Barnes explained eight years ago why bankruptcy stays do not require personal jurisdiction, unlike injunctions in receiverships.

7th Circuit, Illinois, Illinois Northern District

August 16, 2024

Fifth Circuit Receivership Opinion Raises Questions About the Automatic Stay

Fifth Circuit says that the court must have obtained personal jurisdiction over a third party in a receivership to enforce an injunction. Is the same true for the automatic stay and the discharge injunction in bankruptcy? Is there no injunction before there’s personal jurisdiction?

5th Circuit

August 12, 2024

Supreme Court’s Jarkesy Opinion Clarifies Granfinanciera on Jury Trial Rights

A Supreme Court nonbankruptcy decision means there is no right to a jury trial in the claims-allowance process in bankruptcy.

Supreme Court