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ABI Journal

August 28, 2020

Third Circuit Backtracks; Malice Not Required for Punies on a Dismissed Involuntary

Even when after a finding of bad faith, the court retains discretion to deny punitive damages, Third Circuit says. Compensatory damages are not available if the debtor was failing anyway.

3rd Circuit

August 27, 2020

Fourth Circuit Stands Alone in Limiting Chapter 13 Plan Modifications

Eleventh Circuit joins the majority of circuits by holding that unforeseen, changed circumstances are not required to modify a chapter 13 plan.

11th Circuit

August 25, 2020

Sanctions of $150,000 Upheld Against Nationwide Consumer Firm

When $50,000 in sanctions were not enough to coerce compliance with the Code and Rules, the Eleventh Circuit upheld $150,000 in sanctions for a second violation.

11th Circuit

August 20, 2020

Bankruptcy Court Alone May Decide Whether a Claim Is Estate Property, BAP Says

Bankruptcy Court Alone May Decide Whether a Claim Is Estate Property, BAP Says

10th Circuit

August 18, 2020

No ‘Core’ Jurisdiction to Protect Nondebtors with Injunctions, N.Y. District Judge Says

New York district judge differs with the Third Circuit on a bankruptcy court’s constitutional power to issue nondebtor, third-party releases.

2nd Circuit, New York, New York Southern District

August 13, 2020

Florida Judge Bars Redesignation Under the SBRA When Deadlines Have Already Lapsed

With deadlines already elapsed, Judge Grossman disagrees with three judges who allowed redesignation under subchapter V of chapter 11.

11th Circuit, Florida, Florida Southern District

August 12, 2020

The Automatic Stay Is a Get-Out-of-Jail Free Card in Chicago

The Seventh and Ninth Circuits may not be on the same page when it comes contempt citations falling under the Section 362(b)(4) exception to the automatic stay.

7th Circuit, Illinois, Illinois Northern District

August 11, 2020

Seventh Circuit Bars ‘Objector Blackmail’ in a Class Settlement

The Seventh Circuit uses broad equitable powers to prevent one member of a class from receiving a settlement when appealing an issue applicable to the entire class.

7th Circuit

August 07, 2020

Creditors Have Standing but Not Authority to Pursue Estate Claims, Third Circuit Says

Third Circuit’s Judge Bibas says that courts use the wrong nomenclature when they say that creditors lack standing to pursue claims belonging to the estate. It’s a question of statutory authority, he said, not standing.

3rd Circuit

August 06, 2020

Seven-Year Chapter 13 Stretchout Isn’t Available for Plans Confirmed After March 27

Two judges agree that the CARES Act amendment allowing chapter 13 plans to run for seven years is applicable only to plans confirmed before March 27.

6th Circuit, Michigan, Michigan Eastern District