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ABI Journal

January 07, 2020

Second Circuit Again Applies the ‘Safe Harbor’ to Protect Selling Shareholders in an LBO

The Supreme Court’s Merit Management opinion fails to persuade the Second Circuit to change the result in Tribune.

2nd Circuit

January 03, 2020

Holding a Contempt Hearing May Be Ok, but the Remedy Might Violate Automatic Stay

A contempt hearing fell under the ‘criminal’ exception to the automatic stay, but jailing a debtor to coerce payment of a prepetition debt violated the stay, Judge Grossman ruled.

2nd Circuit, New York, New York Eastern District

December 26, 2019

The Texas UFTA Has No ‘Futility Defense’ When a Transferee Is on Inquiry Notice

The Texas UFTA Has No ‘Futility Defense’ When a Transferee Is on Inquiry Notice

5th Circuit

December 26, 2019

Divided Fifth Circuit Again Permits Third-Party Injunctions in Stanford Receivership

Fifth Circuit should decide en banc whether nondebtor releases are permissible in receiverships but not in bankruptcy cases.

5th Circuit

December 23, 2019

Third Circuit Finds Constitutional Power to Grant Releases in Confirmation Orders

Third Circuit emphasizes the limitation of nonconsensual, third-party releases to ‘exceptional’ cases.

3rd Circuit

December 19, 2019

Supreme Court Grants ‘Cert’ to Decide Whether Inaction Violates the Automatic Stay

Virginia case highlights the damage that will be done to debtor protections if affirmative action is required for a stay violation.

4th Circuit, Virginia, Virginia Eastern District

December 13, 2019

Supreme Court Update: No Decision Soon on Extraterritorial Fraudulent Transfers

The Supreme Court wants the government’s opinion about comity and the extraterritorial application of Sections 548 and 550.

Supreme Court

December 10, 2019

Supreme Court Might Allow FDCPA Suits More than a Year After Occurrence

The ‘fraud-specific discovery rule’ might permit FDCPA suits filed more than one year after the occurrence that gives rise to the claim.

Supreme Court

December 06, 2019

Seventh Circuit Limits Punitive Damages to Total Compensatory Damages of $582,000

Despite atrocious mortgage servicing, the circuit court cut a jury’s $3 million award of punitive damages to $582,000.

7th Circuit

December 05, 2019

The Supreme Court May Duck a Case Involving Federal Common Law vs. State Law

At oral argument, the justices seemed to recognize that Rodriguez v. FDIC does not raise the question of whether the lower courts relied on federal common law in deciding the ownership of a tax refund.

Supreme Court