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ABI Journal

June 18, 2021

Barton Protection Ends When the Bankruptcy Case Closes, Eleventh Circuit Says

Eleventh Circuit splits with four other circuits by holding that the Barton doctrine doesn’t protect trustees once the bankruptcy is over.

11th Circuit

June 17, 2021

Treble Damages for ‘Willfulness’ Won’t Automatically Result in Nondischargeability

The lack of specific findings of fact by the arbitrator meant that a treble damage award for willful breach of contract was dischargeable.

2nd Circuit, New York, New York Eastern District

June 16, 2021

Acevedo Doesn’t Bar Compensation for Services Before Entry of a Retention Order

So long as there was no delay in filing the retention application, Judge Tighe identified statutory and practical reasons for allowing compensation for services rendered before entry of a retention order.

9th Circuit, California, California Central District

June 11, 2021

Sixth Circuit Creates a Split by Requiring Dismissal of an Abusive Chapter 13 Filing

Disagreeing with two other circuits, the Sixth Circuit finds no power in the bankruptcy court to avoid dismissing a chapter 13 case even if the debtor filed repeatedly in bad faith to avoid foreclosure.

6th Circuit

June 07, 2021

In ‘Related To’ Jurisdiction, District Court Applies the Bankruptcy Rules, Circuit Says

If the district court is adjudicating a suit with “related to” jurisdiction under 28 U.S.C. § 1334(b), the district court applies the Bankruptcy Rules, not the Federal Rules, the First Circuit says.

1st Circuit

June 04, 2021

Arbitration Clause Results in Temporary Stay of ‘Core’ Proceedings in Bankruptcy Court

Decision by Bankruptcy Judge Michelle Harner demonstrates the flaw in the Fourth Circuit’s rule requiring parallel proceedings in bankruptcy court and in arbitration when disputes are both core and non-core.

4th Circuit, Maryland

June 01, 2021

Debt from a Defunct Business Can Help to Qualify for Subchapter V

Part-time self-employment, coupled with debt from a defunct business, qualified the debtor for reorganization under Subchapter V of chapter 11.

4th Circuit, North Carolina, North Carolina Middle District

May 27, 2021

Circuits Are Now Split on the Constitutionality of the 2018 Increase in U.S. Trustee Fees

The Second Circuit split with the Fourth and Fifth Circuits by holding that the increase in fees for the U.S. Trustee system was unconstitutional because it was not imposed simultaneously in the two states with bankruptcy administrators.

2nd Circuit

May 20, 2021

U.S. Suit Dismissed After German Defendant Files Insolvency in Germany

Filing a chapter 15 petition wasn’t required for a U.S. district court to dismiss a civil action against a German company undergoing insolvency in Germany.

2nd Circuit, New York, New York Southern District

May 19, 2021

West Virginia Judge Allows Conversion to Subchapter V After Deadlines Passed

When drafting a statute, Congress cannot ‘think of every single esoteric possibility,’ Judge Mignault says.

4th Circuit, West Virginia, West Virginia Southern District