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ABI Journal

September 14, 2022

A Flatfooted Mistake Isn’t Remedied by Equity or Relation Back, BAP Says

Absent a good excuse for misfiling a complaint, the bankruptcy court properly dismissed a complaint as untimely.

9th Circuit

September 13, 2022

Being Tossed Off a Committee Doesn’t Confer Appellate Standing, District Judge Says

Being removed from an official committee doesn’t harm the former member’s pecuniary interests and therefore doesn’t confer appellate standing.

5th Circuit, Louisiana, Louisiana Eastern District

September 12, 2022

Does Mootness Arising on Appeal Strip the Lower Court Decision of Precedential Value?

Not reaching the merits, the Ninth Circuit nonetheless vacated a BAP decision because the case became moot during the appeal.

9th Circuit

September 09, 2022

Indiana Bankruptcy Judge Narrowly Reads the Section 546(e) Safe Harbor

Although a stock purchase and a loan payoff were only one month apart, the two transactions lacked a sufficient nexus to invoke the safe harbor, Bankruptcy Judge James Carr said.

7th Circuit, Indiana, Indiana Southern District

September 06, 2022

Judge Predicts Seventh Circuit Wouldn’t Halt Earplug Lawsuits Against Nondebtor 3M

Judge Graham in Indianapolis sees the Seventh Circuit as interpreting ‘related to’ jurisdiction narrowly and not inclined to halt lawsuits against nondebtors without a direct effect on the bankrupt estate.

7th Circuit, Indiana, Indiana Southern District

September 02, 2022

Collateral Estoppel Can Bar Use of Federal Rule 45 to Quash a Subpoena, Circuit Says

Third Circuit says: You can object to a Rule 2004 discovery motion or move to quash a subpoena under Federal Rule 45, but not both.

3rd Circuit

August 31, 2022

Solvent Debtor’s Unimpaired Creditors Get Higher Interest Rate, Ninth Circuit Says

Dissenter in the Ninth Circuit would have held that unimpaired creditors of a solvent debtor get no interest whatsoever, although impaired creditors are entitled to interest.

9th Circuit

August 25, 2022

Bankruptcy Judge Finds Liability for a Municipality’s Denial of Due Process Rights

A local government removed a lawsuit to bankruptcy court, but the bankruptcy judge turned around and slam-dunked the government for violating the plaintiff’s Fourteenth Amendment rights.

2nd Circuit, New York, New York Eastern District

August 19, 2022

Fifth Circuit Holds that Surety Bonds Are Not Executory Contracts

The Fifth Circuit said in dicta that courts might apply the ‘functional approach’ rather than the Countryman test in deciding whether a triangular contract is executory.

5th Circuit

August 18, 2022

After Siegel, Tenth Circuit Mandates Refunds for Overpayment of U.S. Trustee Fees

The Tenth Circuit is the first appeals court to rule on remedy after the Supreme Court said that the 2018 increase in U.S. Trustee fees was unconstitutional.

10th Circuit