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ABI Journal

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

September 13, 2019

‘Close Nexus’ Test Doesn’t Apply to Liquidating Trusts After Confirmation

‘Conceivable effect’ test for ‘related to’ jurisdiction continues to apply to liquidating trusts after confirmation of a chapter 11 plan.

10th Circuit

August 27, 2019

Location of Assets in the U.S. Doesn’t Defeat COMI in the Cayman Islands

Madoff feeder fund allowed to conduct primary liquidation in the Cayman Islands.

July 25, 2019

Fifth Circuit Bars Creditors’ Own Claims Against Settling Defendants

Fifth Circuit permits bar orders in receiverships while blocking nonconsensual, third-party releases in chapter 11 plans.

5th Circuit

June 20, 2019

Receiver’s Settlement Powers Aren’t Greater than a Bankruptcy Trustee’s, Circuit Says

Fifth Circuit overturns a settlement that barred officers and directors from accessing insurance policies.

5th Circuit

June 04, 2019

Fifth Circuit Muses on the Split over Pleading Standards for Fraudulent Schemes

Fifth Circuit generally holds that heightened pleading standards in Rule 9(b) do not apply to claims that don’t rely on fraudulent activity, even though the overall scheme may be fraudulent.

5th Circuit

May 30, 2019

Texas Supreme Court to Rule on the ‘Futility’ Defense to a Fraudulent Transfer

Having previously made an ‘Erie’ guess finding no good faith defense to a fraudulent transfer, the Fifth Circuit now certifies the issue to the Texas Supreme Court.

5th Circuit

March 22, 2019

After 12 Losses, Will Madoff Customers Stop Pursuing Claims Belonging to the Estate?

New York district judge is the most recent court to uphold an injunction implementing a $7.2 billion Madoff settlement.

2nd Circuit, New York, New York Southern District

February 27, 2019

Second Circuit Allows Extraterritorial Application of Sections 548 and 550

Neither comity nor the presumption against extraterritorial application of U.S. statutes bars trustees from suing to recover subsequent transfers made abroad.

2nd Circuit

February 15, 2019

Bankruptcy Judge OKs Four Years of Jailing for Civil Contempt

An appellate court will decide whether four years of jailing means that civil incarceration has become futile.

9th Circuit, California, California Central District