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ABI Journal

August 14, 2024

Preserving Defensive Setoff Rights Doesn’t Require Filing a Claim, Judge Glenn Says

Defensive setoff rights are not discharged by chapter 11 confirmation, even when no proof of claim was filed.

2nd Circuit, New York, New York Southern District

August 01, 2024

Ninth Circuit Employs Equity to Avoid Following the Supreme Court’s Taylor and Schwab

Claiming 100% of FMV didn’t enable debtors to exempt more than the statutory cap when there had been no objection to the exemption claim.

9th Circuit

July 25, 2024

Releases, a/k/a Exculpations, of Insiders Barred Under a Chapter 11 Plan

Bankruptcy Judges Wiles in New York decided that insiders were not entitled to releases under Section 503(c), but not for the reasons contained in Purdue.

3rd Circuit, New Jersey

July 08, 2024

Courts Are Now Split on Ignoring Nonvoting Classes in Subchapter V Plans

Disagreeing with two bankruptcy courts in Houston, Miami’s Judge Isicoff holds that a Sub V plan with a nonvoting class can be confirmed only as a nonconsensual plan.

11th Circuit, Florida, Florida Southern District

July 05, 2024

A Claim Is Unliquidated if It Requires the Exercise of Judgment or Discretion

Tort claims are usually unliquidated, but a contract claim is liquidated if it’s precisely determinable by agreement or operation of law, Judge Lori Vaughan says.

11th Circuit, Florida, Florida Middle District

July 02, 2024

Judicial Estoppel Barred the Debtor from Filing an Undisclosed ‘PI’ Claim, Circuit Says

Eighth Circuit holds that a chapter 13 debtor, not the trustee, has standing to bring personal injury claims.

8th Circuit

June 28, 2024

Supreme Court Reverses Purdue: No Nondebtor, Third-Party, Nonconsensual Releases

Justice Gorsuch for the majority bans third-party releases broader than a discharge for those who don’t surrender all their assets to the court.

Supreme Court

June 14, 2024

Supreme Says: No Refunds for Overpayment of Unconstitutional U.S. Trustee Fees

Although there was no split of circuits, the Supreme Court decided that Congress provided a sufficient remedy by requiring uniform fees going forward.

Supreme Court

June 07, 2024

Three Years Is the ‘Default’ Duration for a Subchapter V Plan, Judge Robinson Says

The Code doesn’t contain any rules specifying when a Subchapter V plan should have a five-year duration rather than three years.

5th Circuit, Texas, Texas Western District

June 07, 2024

Supreme Court Says that Insurance Neutrality Doesn’t Deprive an Insurer of Standing

Reversing the Fourth Circuit, the Supreme Court gives a flexible interpretation to traditional notions of constitutional standing in bankruptcy cases and appeals.

Supreme Court