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ABI Journal

September 07, 2023

Stop Punishing the Innocent: Congress Should Fix the Doll/Evans Problem

What will become of the chapter 13 system if standing trustees must refund all fees collected in cases dismissed before confirmation? The answer is perhaps unexpected: Unsecured creditors in confirmed chapter 13 cases will pay the administrative expenses of cases that fail.

9th Circuit

September 01, 2023

If Bankruptcy Occurs on the Eve of Trial, Is There ‘Cause’ to Modify the Stay?

Delaware’s Judge Craig Goldblatt makes a ‘common-sense judgment’ in deciding whether to allow a prepetition lawsuit to proceed in state court.

3rd Circuit, Delaware

August 31, 2023

A RICO Case Shows that Final Fee Allowances Don’t Confer Immunity

The RICO suit by Jay Alix Against McKinsey mostly survived a motion to dismiss.

2nd Circuit, New York, New York Southern District

August 28, 2023

Four Circuits Agree: Debtors Get Refunds for Overpayment of U.S. Trustee Fees

With four circuits in agreement, the Supreme Court isn’t likely to grant cert to rule on whether chapter 11 debtors are entitled to refunds for overpayment of U.S. Trustees fees that were held unconstitutional in Siegel.

9th Circuit

August 17, 2023

Fifth Circuit Adheres to ‘Person Aggrieved’ for Appellate Standing in Bankruptcy

Bankruptcy courts can have subject matter jurisdiction to approve settlements between nondebtors.

5th Circuit

August 07, 2023

Default Rates Imposed Before Filing Must Be Cured to Assume a Loan Agreement

Monetary defaults, including default rates and fees, must be cured before a debtor may assume a loan agreement, New York’s Judge Bentley rules.

2nd Circuit, New York, New York Southern District

August 03, 2023

J&J’s ‘Baby Powder’ Chapter 11 Case Dismissed a Second Time: No Financial Distress

Bound by the Third Circuit’s first LTL decision, the bankruptcy court found that LTL’s rejiggered second filing suffered from the same defect: no immediate financial distress.

3rd Circuit, New Jersey

August 01, 2023

Government Asks the Supreme Court to Halt Consummation of Purdue’s Chapter 11 Plan

Rebuffed in the Second Circuit, the Solicitor General is asking the Supreme Court to stay issuance of the mandate that would allow Purdue Pharma to consummate its chapter 11 plan.

Supreme Court

August 01, 2023

Ninth Circuit: Trial Subpoenas Can’t Compel Zoom Testimony More than 100 Miles Away

The court’s ability to compel trial testimony by video doesn’t eradicate the 100-mile limitation on issuance of trial subpoenas.

9th Circuit

July 31, 2023

Section 105(a) Doesn’t Give Rise to a Private Right of Action for Abuse of Process

With claims for abuse of process not available in a bankruptcy case, the offended party must pursue contempt or other sanctions created by the Bankruptcy Code, a California district judge says.

9th Circuit, California, California Central District