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ABI Journal

July 21, 2021

Circuit Split on U.S. Trustee Fees Likely Won’t Reach the Supreme Court Until Fall 2022

Judge Hoffman sets up Sixth Circuit to opine on the circuit split regarding the constitutionality of the 2018 increase in fees for the U.S. Trustee system.

6th Circuit, Ohio, Ohio Southern District

July 16, 2021

Publication Notice Won’t Suffice for Creditors with Recorded Property Interests

Actual notice is required even for contingent liabilities not shown on financial statements, the Sixth Circuit holds.

6th Circuit

July 13, 2021

IRA Withdrawals Aren’t Protected from Madoff Fraudulent Transfer Judgments

Madoff defendant socked with $280,000 in prejudgment interest for relitigating issues decided long ago.

2nd Circuit, New York, New York Southern District

July 12, 2021

Liquidating a Defunct Corporation Qualifies for the SBRA, Judge Lopez Says

Increasingly, courts are allowing defunct corporations to proceed under the SBRA while individual owners of defunct businesses aren’t being treated as small business debtors in chapter 11.

5th Circuit, Texas, Texas Southern District

July 06, 2021

Maryland Decision Shows the Hardship Imposed on Debtors by Student Loans

Judge Harner does the best she can to ease the burden imposed on a debtor by student loans.

4th Circuit, Maryland

July 02, 2021

Sovereign Immunity Prevailed Because a Slot Machine License Isn’t ‘Property’

In Pennsylvania, a gaming license isn’t ‘property.’ It’s a revocable license that can’t be owned.

3rd Circuit

June 30, 2021

Concurrence Doubts Ninth Circuit Precedent Barring a Creditor from Enforcing the Stay

Two judges appointed to the Ninth Circuit by President Trump disagree about the ability of a creditor to enforce the automatic stay for its benefit or to protect the estate.

9th Circuit

June 29, 2021

Supreme Court Majority Deals a Blow to Enforcement of Consumer Protection Laws

Supreme Court narrows Spokeo by holding that violation of a statute won’t always give rise to standing and the right to sue for damages.

Supreme Court

June 28, 2021

Judgment for Sexual Discrimination Automatically Made the Debt Nondischargeable

Although the arbitrator didn’t explicitly find willful and malicious injury, the nature of a successful claim for sexual discrimination supplied the required findings for nondischargeability.

9th Circuit

June 24, 2021

The Pleading and Proof Required for Claims Against a Subsequent Transferee

Read Judge Grossman’s opinion as though it were a final exam question to see how many issues you spot and whether you come up with the correct answers.

2nd Circuit, New York, New York Eastern District