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ABI Journal

August 15, 2022

Sixth Circuit Defines Res Judicata Liberally

Res judicata can bar a claim in a later lawsuit if it wasn’t raised in bankruptcy court, given a bankruptcy court’s broad jurisdiction.

6th Circuit

August 12, 2022

Channeling ‘Asbestos’ Claims Is a Legitimate Use of Chapter 7, District Judge Says

Reversing the bankruptcy court, a district judge ruled that a company may file in chapter 7 even when there are no operations and no assets aside from insurance.

2nd Circuit, Connecticut

August 10, 2022

Bankruptcy Removal Isn’t the Same as General Removal, Fifth Circuit Explains

Fifth Circuit finds ‘related to’ jurisdiction in a lawsuit between two third parties who were neither debtors nor creditors.

5th Circuit

August 08, 2022

First Circuit BAP Limits the Student Loan ‘Borrower Defense’

The First Circuit BAP suggests that invocation of the borrower defense with regard to dischargeability of student loans requires exhaustion of administrative remedies in the Department of Education.

1st Circuit

August 03, 2022

The PBGC Isn’t a ‘Triggering Creditor’ for a Section 544(b) Suit by a Trustee

If the government isn’t suing on a claim originally owing to the U.S., a trustee can’t use the six-year statute of limitations in the FDCPA.

4th Circuit, North Carolina, North Carolina Western District

August 02, 2022

Courts Disagree on a Trustee’s Ability to Use the IRS’s Longer Statute of Limitations

Two or three years from now, the Tenth Circuit may have a chance to agree or disagree with the Fifth Circuit on an important question under Section 544(b).

10th Circuit, Kansas

August 01, 2022

A Judgment for Punitive Damages Might Not Support Nondischargeability Automatically

Jury instructions and a special verdict form can determine whether issue preclusion automatically results in nondischargeability.

5th Circuit, Texas, Texas Southern District

July 27, 2022

No De Novo Review of Discovery Sanctions After the Reference Is Withdrawn

An adverse inference sanction for spoliation of evidence is reviewed for abuse of discretion by the district court after withdrawal of the reference.

8th Circuit, Minnesota

July 25, 2022

FERC Strikes Out a Third Time in the Fifth Circuit on Rejecting Power Contracts

FERC tried the patience of the Fifth Circuit by arguing again that the agency can bar a chapter 11 debtor from rejecting a filed-rate contract.

5th Circuit

July 18, 2022

Rule 11 Motion for Sanctions May Be Filed After Final Judgment, Eleventh Circuit Says

A motion for sanctions may be filed after judgment, as long as the 21-day safe harbor has elapsed before judgment.

11th Circuit