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ABI Journal

February 07, 2020

First Circuit Reverses the BAP for Fact-Finding on Appeal

First Circuit requires detailed fact-finding by the bankruptcy court on the credibility of witnesses and the elements of nondischargeability for false representations.

1st Circuit

February 05, 2020

Stay Violation Order Is Final Even Before Attorneys’ Fees Are Awarded, Circuit Says

First Circuit rules that an order finding a stay violation must be appealed before the bankruptcy court grants an award of attorneys’ fees.

1st Circuit

January 31, 2020

U.S. Receivership Court Had No Jurisdiction over Foreign Liquidators

District judge decides that he lacked jurisdiction to enforce a cross-border protocol against foreign liquidators.

5th Circuit, Texas, Texas Northern District

January 29, 2020

Four-Year Statute of Limitations Can Stretch to at Least Seven Years, Judge Owens Says

The one-year discovery clause in UFTA allows a debtor or trustee to file an avoidance suit even if the ordinary four-year statute has elapsed.

3rd Circuit, Delaware

January 27, 2020

Circuit Judge Questions Applicability of Veil Piercing and Alter Ego to Trusts

Sixth Circuit upholds dismissal of claims for reverse veil piercing and reverse alter ego.

6th Circuit

January 24, 2020

Incorporating AAA Rules by Reference Won’t Work with Consumers

Courts are split on the question of whether the incorporation of AAA rules by reference allows arbitrators to decide threshold questions of arbitrability and validity of an agreement to arbitrate.

4th Circuit, South Carolina

January 23, 2020

Stays Are Automatic from Denial of a Motion to Dismiss for Sovereign Immunity

Courts are divided on whether the district court loses jurisdiction to stay proceedings in bankruptcy court after the filing of a notice of appeal.

3rd Circuit, Delaware

January 15, 2020

A Prior BAP Opinion Is Virtually Binding on a Later BAP Panel

A later First Circuit BAP panel should follow BAP authority unless the prior opinion seems “dead wrong.”

1st Circuit

January 13, 2020

Supreme Court Won’t Hear a Case to Compel Paying Puerto Rico Bondholders Currently

Supreme Court let a First Circuit opinion stand that barred bondholders from compelling payment during Puerto Rico’s restructuring under PROMESA.

Supreme Court

January 08, 2020

A Pennsylvania Gambling License Isn’t ‘Property’ Recoverable as a Fraudulent Transfer

Sovereign immunity required dismissal of a suit to recover the value of a gambling license because the suit wasn’t an ancillary exercise of the bankruptcy court’s in rem jurisdiction over a res.

3rd Circuit, Pennsylvania, Pennsylvania Eastern District