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ABI Journal

April 05, 2021

Filing a Timely Extension Motion Won’t Extend a Deadline Without an Order

Creditors’ lawyers shot themselves in the foot by having the bankruptcy judge moot a motion for an extension of the dischargeability deadline.

5th Circuit, Texas, Texas Western District

March 30, 2021

General Discharge Barred Suing the Debtor to Collect a Nondischargeable Debt

The Eleventh Circuit narrowed its Jet Florida rule that allowed suing a discharged debtor as nominal defendant.

11th Circuit

March 25, 2021

Certified Mail Can Be an Inferior Method for Serving a Summons and Complaint

Serving a summons and complaint by certified mail is ineffective without a return receipt.

4th Circuit, West Virginia, West Virginia Southern District

March 18, 2021

Third Circuit Resurrects an ‘Admin’ Claim When the Stalking Horse Had No Breakup Fee

The Third Circuit found loopholes in the purchase agreement permitting the buyer to assert an administrative claim, even though the breakup fee was disallowed.

3rd Circuit

March 15, 2021

Individual Chapter 11 Debtors Have Standing to Raise Thirteenth Amendment Claims

The Eleventh Circuit was ‘skeptical’ about a violation of the anti-slavery amendment resulting from the appointment of a chapter 11 trustee to oust an individual chapter 11 debtor in possession.

11th Circuit

March 12, 2021

Trustees Don’t Need a Pecuniary Interest to Have Standing to Appeal, Fifth Circuit Says

Fee allowances aren’t made with the benefit of hindsight, the Fifth Circuit says.

5th Circuit

March 09, 2021

Equitable Mootness Doesn’t Violate Due Process, First Circuit Says

Constitutional arguments don’t entitle the creditor to stay relief.

1st Circuit

March 08, 2021

Split Grows on Whether a Subchapter V Debtor Must Be ‘Currently’ Engaged in Business

The owner of defunct businesses was held ineligible to be a small business debtor because he was no longer the owner of an operating business. Being a non-owner executive of an operating business didn’t qualify him.

5th Circuit, Texas, Texas Northern District

March 03, 2021

Second Circuit Ducks a Critical Vendor Appeal

An appeal from a critical vendor order was dismissed as equitably moot.

2nd Circuit

March 01, 2021

Circuits Split on Applying Derivative Jurisdiction to a Lack of Personal Jurisdiction

In a removed action, nationwide service under Bankruptcy Rule 7004 can give a district court personal jurisdiction, even though the state court would lack personal jurisdiction.

11th Circuit