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ABI Journal

April 06, 2020

Taggart Didn’t Let Corporate Employees Off the Hook for a Stay Violation

Tortious or fraudulent conduct needn’t be shown to hold a corporate employee liable for violating the automatic stay.

1st Circuit, Rhode Island

April 01, 2020

Fifth Circuit Cites ‘Clearly Erroneous’ Findings to Declare a Debt Nondischargeable

Circuit says it’s easy to show reasonable reliance on a false financial statement.

5th Circuit

March 26, 2020

Ninth Circuit Creates a Legal Fiction to Uphold Recovery of an Unauthorized Transfer

Ninth Circuit assumed that transferred property must remain property of the estate after conversion from ‘13’ to ‘7’ before the chapter 7 trustee can avoid an unauthorized transfer under Section 549.

9th Circuit

March 25, 2020

Supreme Court Explains Sovereign Immunity in Bankruptcy Cases

The Supreme Court uses a copyright case to explain why the bankruptcy exception to states’ sovereign immunity is unique under the Constitution.

Supreme Court

March 24, 2020

Ninth Circuit BAP Applies Taggart to Violations of the Automatic Stay

Taggart left open the question of whether the ‘no objectively reasonable basis’ standard for discharge violations also applies to contempt of the automatic stay.

9th Circuit

March 24, 2020

Lawyer for Madoff Customer Slapped with $57,347 Discovery Sanction

Calling the Madoff trustee a liar and basing a discovery motion on facts known to be false resulted in sanctions under Rule 37(a)(5)(B).

2nd Circuit, New York, New York Eastern District

March 23, 2020

Another Case Shows the Need to Provide Remedies for Discharge Violations

Discharge was violated, but sanctions are likely out of reach.

7th Circuit

March 17, 2020

Judge Finds a Workaround to Avoid Using Nunc Pro Tunc Retentions

Judge Grossman finds a way to grant allowances of compensation for services performed before the entry of a retention order.

2nd Circuit, New York, New York Eastern District

March 13, 2020

Ninth Circuit Takes a Hard Line Against Waiving Discharge Inadvertently

The Ninth Circuit may be backing off from Ybarra, a case that waives discharge for attorneys’ fees if the debtor ‘returns to the fray.’

9th Circuit

March 12, 2020

HAVEN Act May Be Employed to Reduce Payments Under a Confirmed Chapter 13 Plan

Judge Shefferly writes a complicated opinion on the retroactivity of the HAVEN Act to cases filed prior to enactment.

6th Circuit, Michigan, Michigan Eastern District