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ABI Journal

February 22, 2022

Rule 11 Sanctions Coming for Madoff Customers Refusing to Give Up ‘Fictitious Profits’

Two district judges are becoming incensed by ‘net winners’ in the Madoff Ponzi scheme who continue litigating and losing on the same issues.

2nd Circuit, New York, New York Southern District

February 16, 2022

Consent Orders Strictly Enforced in the Fifth Circuit, Even if the Result Is Unreasonable

Although averse to third-party releases in chapter 11 plans, the Fifth Circuit will allow bankruptcy courts to enforce releases given by one third party to another.

5th Circuit

February 04, 2022

Opinion Shows the Fault in Barring Barton Protection When a Case Is Closed

The Eleventh Circuit has subjected its trustees to the risk of expensive litigation in a faraway court unfamiliar with what happened in the bankruptcy case.

11th Circuit, Florida, Florida Southern District

January 20, 2022

Eleventh Circuit Takes Sides on Circuit Split by Upholding the 2018 Increase in U.S. Trustee Fees

On an issue the Supreme Court will decide this spring, the Eleventh Circuit broke the tie among the circuits by finding no unconstitutional lack of uniformity when the 2018 increase in U.S. Trustee fees was not immediately applicable in two states with Bankruptcy Administrators.

11th Circuit

January 14, 2022

Expanding on Midland Funding, a BAP Disallows Fee-Shifting for Time-Barred Claims

A state statute imposing sanctions for groundless claims is procedural and preempted by federal law with regard to fee-shifting.

9th Circuit

January 13, 2022

Bar to Challenging Taxes in Bankruptcy Court Isn’t Retroactive, Eleventh Circuit Says

The Eleventh Circuit opinion has important dicta on whether or not the tort of ‘continuous trespass’ exists in New York.

11th Circuit

January 12, 2022

Supreme Court to Resolve Circuit Split on the 2018 Increase in U.S. Trustee Fees

The Supreme Court granted certiorari to decide whether the 2018 increase in U.S. Trustee fees violated the Bankruptcy Clause because it was not immediately applicable in two states with Bankruptcy Administrators.

Supreme Court

January 10, 2022

BAP Says that a Rule 41 Voluntary Dismissal Can Incorporate Discovery Sanctions

The BAP decision on voluntary dismissal under Rule 41 adds credence to the idea that bankruptcy courts can attach conditions to a debtor’s voluntary dismissal under Section 1307(b).

6th Circuit

December 23, 2021

Creating a Split, Second Circuit Says that Section 363(m) Is Jurisdictional

The new decision from the Second Circuit is based on prior opinions where the appeals court said there was no “jurisdiction” when it would have been correct to say there was no “power.”

2nd Circuit

December 22, 2021

Circuit Judge Finds No Constitutional or Statutory Right to Free PACER Access

At the courthouse, the public is only entitled to free access to papers filed in that district.

6th Circuit