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ABI Journal

September 17, 2019

Second Circuit Explains when Default Judgments Qualify for Issue Preclusion

Discovery abuse in a prior lawsuit can result in nondischargeability in a later bankruptcy.

2nd Circuit

September 11, 2019

Non-Debtor’s Creditors Must Have Notice of Substantive Consolidation, Circuit Says

Equitable nature of substantive consolidation requires notice to creditors of non-debtors who might be affected.

9th Circuit

September 10, 2019

Immediately Withdrawing the Reference Is ‘Absurd,’ District Judge Says

Defendants in lawsuits by Lehman Brothers are stuck in bankruptcy court until the cases are ready for a jury trial.

2nd Circuit, New York, New York Southern District

September 09, 2019

Ninth Circuit Sides with the FDIC over Ownership of Tax Refunds

An appeal in the Ninth Circuit did not reach the issue to be decided by the Supreme Court in <em>Rodriguez</em>.

9th Circuit

September 06, 2019

May a Trustee Recover Proceeds from Fraudulently Transferred Property?

Courts disagree on whether a trustee may recover proceeds of a fraudulent transfer from a later transferee, not only the fraudulently transferred property itself.

10th Circuit, Kansas

August 30, 2019

Taggart’s Effect Evident in Eleventh Circuit Ruling on Discharge Violation

An action that could violate the FDCPA may not be a violation of the discharge injunction.

11th Circuit

August 29, 2019

‘Related To’ Jurisdiction Is Measured When the Suit Is Filed, Not Later, Circuit Says

Even though subject matter jurisdiction persists when there is no longer an effect on the estate, the court may exercise discretion to dismiss, the Fifth Circuit says.

5th Circuit

August 26, 2019

Absolute Priority Doesn’t Require an Individual Debtor to Pay for Exempt Property

BAP holds that an individual in chapter 11 isn’t required to contribute new value to retain exempt property.

9th Circuit

August 22, 2019

Homestead Exemption Upheld on a House Neither Taxed nor Zoned for Residential Use

Occupancy and intent to be a permanent residence are all that’s needed for a homestead exemption, even if the house violates local ordinances.

11th Circuit

August 21, 2019

Chapter 7 Debtor’s Counsel Permitted to Defend Creditors in Avoidance Suits

Bankruptcy Judge Carol A. Doyle parses the limited duties of a chapter 7 debtor to the estate.