October 06, 2021

Over-the-Top Allegations of Stay Violation Bring $10,000 Sanction for Violating Rule 11

Counsel sanctioned $10,000 for making allegations about an intentional or malicious stay violation without having performed an investigation to justify the claims.

4th Circuit, South Carolina

October 05, 2021

Surety Bonds Aren’t Executory Contract and Can’t Be Assumed, District Judge Says

An irrevocable surety bond isn’t executory because it gives the bonding company no further obligations to the debtor.

5th Circuit, Louisiana

October 04, 2021

On an ‘Involuntary,’ Denial of Summary Judgment Doesn’t Mean the Claim Is Disputed

The Iqbal and Twombly standards don’t apply to involuntary petitioners who are required to use Official Form 105.

5th Circuit, Texas, Texas Southern District

September 30, 2021

A Claim Objection Can Head Off Election of a Permanent Chapter 7 Trustee

A creditor can’t elect a trustee to pick its adversary in a lawsuit, Bankruptcy Judge Gunn says.

D.C. Circuit

September 29, 2021

Objections to Priority Claims May Follow Confirmation of a Chapter 13 Plan

Confirming a chapter 13 plan on the assumption that a claim was entitled to priority didn’t bar the debtors from later objecting to the priority of the claim.

7th Circuit, Wisconsin, Wisconsin Eastern District

September 28, 2021

Time Limits for Effecting Service of Process Can Be Flexible, Eleventh Circuit Says

Under unusual circumstances, a two-year delay in completing service of process was not fatal in the Eleventh Circuit.

11th Circuit

September 24, 2021

Estate Claims Can’t Be Sold for Trivial Recovery by Unsecured Creditors

Had the purchaser of estate claims offered to waive its own unsecured claim, the sale might have been approved.

2nd Circuit, New York, New York Eastern District

September 23, 2021

Bankruptcy Court Doesn’t Have Exclusive Jurisdiction over Fraudulent Transfer Suits

The Nevada Supreme Court correctly unpacked the confusing notions of bankruptcy jurisdiction and the division of authority between district and bankruptcy courts.

9th Circuit, Nevada

September 21, 2021

Texas Judge Disagrees with Second Circuit on Sanctions for Violating Rule 3002.1

Bankruptcy Judge Eduardo Rodriguez explained why the Second Circuit was wrong in ruling that violators of Rule 3002.1 are only liable for compensatory damages.

2nd Circuit, New York, New York Southern District

September 20, 2021

Split Heading to the Tenth Circuit on Sovereign Immunity for Section 544(b) Claims

The Tenth Circuit will likely take sides on a split between the Ninth and Seventh Circuits on Section 544(b) state-law claims brought by a trustee in the shoes of an actual creditor.

10th Circuit, Utah