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ABI Journal

August 16, 2021

A Trustee Can’t Always Avoid and Preserve an Unrecorded Mortgage for the Estate

Here’s an example of how state law prevents bankruptcy law from being uniform throughout the U.S.

1st Circuit

August 11, 2021

NC Appellate Court Rules Plans Must Be Unambiguous to Hold a Creditor in Civil Contempt, Citing Taggart

After Taggart v. Lorenzen, plans, orders and injunctions must be highly specific to hold an offending creditor in contempt.

4th Circuit, North Carolina, North Carolina Eastern District

August 10, 2021

Eighth Circuit Comes Near to Abolishing Equitable Mootness

Circuit Judge Loken predicts the Supreme Court will abolish equitable mootness if the lower courts don’t cut back and start reviewing the merits of confirmed chapter 11 plans.

8th Circuit

August 09, 2021

‘Cert’ Petitions Raise Equitable Mootness and Federal Preemption in the Supreme Court

‘Cert’ petitions presenting two bankruptcy issues worthy of review by the Supreme Court will be considered by the justices at the ‘long conference’ on September 27.

Supreme Court

August 06, 2021

Statutory Mootness of Sale Orders Even Overrides Alleged Due Process Violations

Fifth Circuit rejects technical arguments aimed at skirting Section 363(m) and statutory mootness of a sale order.

5th Circuit

August 05, 2021

Second Circuit Makes Taggart Applicable to All Contempt Citations in Bankruptcy Court

Even for egregious, repeated violations of Bankruptcy Rule 3002.1, the bankruptcy court may only award recovery of economic losses, never punitive damages.

2nd Circuit

August 02, 2021

A Motion to Dismiss as of Right Doesn’t Bar the Court from Dismissing with Prejudice

Ninth Circuit BAP doesn’t require a formal motion to dismiss with prejudice when a debtor files a voluntary motion to dismiss as of right under Section 1307(b).

9th Circuit

July 29, 2021

Circuits Split on Allowing Debtors to Cure Chapter 13 Plan Defaults After Five Years

Tenth Circuit splits with the Third and Seventh Circuits on allowing a debtor to cure defaults after a five-year plan has ended.

10th Circuit

July 26, 2021

General Default Judgment Didn’t Satisfy Requirements of Issue Preclusion, Circuit Says

If the complaint was properly plead, a general default judgment might invoke issue preclusion to bar discharge of a debt.

11th Circuit

July 22, 2021

Circuits Split on Finality of Rule 2004 Discovery Orders in Chapter 15 Cases

Citing Ritzen as the reason, the Eleventh Circuit disagreed with the Second Circuit regarding the finality of Rule 2004 discovery orders in chapter 15 cases.

11th Circuit