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ABI Journal

April 05, 2022

A Client Can Be Liable for Sanctions from the Lawyer’s Violation of Rule 9011

Judge Klein let a lawyer off the hook for violating Rule 9011 because the lawyer had already been punished enough.

9th Circuit, California, California Eastern District

April 04, 2022

A Contempt Finding that’s Not ‘Final’ Can’t Be Appealed, Second Circuit Says

A prevailing party can’t appeal arguably erroneous findings.

2nd Circuit

April 01, 2022

Delaware District Judge Says: Don’t Use ‘Nunc Pro Tunc’ When You Mean ‘Retroactive’

Submitting a retention order with the wrong word resulted in a pivotal issue on appeal.

3rd Circuit, Delaware

March 23, 2022

Circuit Split Widens Sovereign Immunity for Section 544(b) Claims

The circuits are now split 2/1 on the waiver of sovereign immunity under Section 544(b) for lawsuits by a trustee based on claims that could have been made by an actual creditor.

4th Circuit

March 18, 2022

Second Circuit Holds that Debtors Are Properly Barred from Receiving PPP Loans

The first court of appeals to reach the issue decides that the SBA properly interpreted the CARES Act to bar chapter 11 debtors from receiving PPP ‘loans.’

2nd Circuit

March 17, 2022

No ‘Excusable Neglect’ for Late Claim if Class Claim Was Denied, Fifth Circuit Says

Fifth Circuit opinion shows that disallowance of a class proof of claim may preclude individual class members from filing late claims.

5th Circuit

March 11, 2022

California Judge Splits with his BAP; Subpoenas Require Court Approval Under Barton

Someone seeking to issue a subpoena to a trustee is the proper party to seek leave under the Barton doctrine, Judge Clarkson says.

9th Circuit, California, California Central District

February 28, 2022

Bad Faith Filings in Chapter 15 Can Be Entitled to ‘Foreign Main Recognition,’ BAP Says

The bankruptcy court has no discretion to deny recognition in chapter 15 if the requirements of Section 1517(a) have been met.

9th Circuit

February 25, 2022

The Two-Year Complaint Deadline Can’t Be Extended Without Notice to Defendants

Equitable tolling can extend the two-year deadline for filing complaints, but the deadline can’t be extended without notice to the defendants, even if they are unknown or unknowable.

9th Circuit, California, California Central District

February 24, 2022

Disregarding Scheduling Orders Can Waive Jury Trials and Objections to Final Orders

Sometimes, demanding a jury trial in answering a complaint comes too late to withdraw the reference.

11th Circuit, Florida, Florida Southern District