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ABI Journal

January 17, 2020

Technicalities Insulated a Lawyer from Liability for Misusing an IOLA

A creditor lost a dischargeability suit by failing to call the right witnesses to prove that a lawyer’s trust account was used to hide assets.

2nd Circuit, New York, New York Eastern District

January 13, 2020

Debt of $46,000 Discharged Despite a Flagrantly False Loan Application

Even though the debtor defaulted, Judge Christopher Klein held a trial and ruled that the lender had not relied on a false loan application.

9th Circuit, California, California Eastern District

January 10, 2020

Fifth Circuit Stretches Equitable Notions to Bend Plain Language

A nonprecedential opinion applies Fifth Circuit authority to achieve a result that’s equitable for the debtor and creditors, and maybe also for a personal injury defendant.

5th Circuit

December 26, 2019

Divided Fifth Circuit Again Permits Third-Party Injunctions in Stanford Receivership

Fifth Circuit should decide en banc whether nondebtor releases are permissible in receiverships but not in bankruptcy cases.

5th Circuit

December 26, 2019

The Texas UFTA Has No ‘Futility Defense’ When a Transferee Is on Inquiry Notice

The Texas UFTA Has No ‘Futility Defense’ When a Transferee Is on Inquiry Notice

5th Circuit

December 13, 2019

Supreme Court Update: No Decision Soon on Extraterritorial Fraudulent Transfers

The Supreme Court wants the government’s opinion about comity and the extraterritorial application of Sections 548 and 550.

Supreme Court

December 04, 2019

Law v. Segal Allowed a Fraudster to Retain $30,000

Eighth Circuit was compelled to overrule its own precedent that permitted the bankruptcy court to bar a debtor from amending schedules based on bad faith.

8th Circuit

November 20, 2019

A Fugitive’s Civil Bankruptcy Appeal Can Be Dismissed, Sometimes

The ‘fugitive disentitlement doctrine’ does not allow a federal court to dismiss an appeal because of a fugitive’s contempt of a state court order, the First Circuit rules.

1st Circuit

November 15, 2019

First Circuit Starkly Holds that Tuition for an Adult Child Is a Fraudulent Transfer

The case in the appeals court apparently did not involve a student account structured to prevent the college from being the initial recipient of a fraudulent transfer.

1st Circuit

November 12, 2019

First and Second Circuits Agree: Trustees Alone May Sue Ponzi Scheme Net Winners

Rulings by the First and Second Circuits ensure that recoveries by a Ponzi scheme trustee will be distributed to all victims, not just those who sue on their own.

1st Circuit