May 14, 2024

Federal Government Doesn’t Have Sovereign Immunity to Avoid Contempt Sanctions

Bankruptcy Judge Scott Clarkson nailed the government with $38,000 in sanctions for a ‘willful’ violation of a discovery order shown by ‘clear and convincing evidence.’

9th Circuit, California, California Central District

May 13, 2024

Three Circuits Now Say ‘13’ Trustees Aren’t Paid if Dismissal Precedes Confirmation

The same question has been sub judice in the Second Circuit for 15 months. Is the Second Circuit on the cusp of making a circuit split?

7th Circuit

April 22, 2024

Lawyer Hit with $47,000 in Sanctions for Filing Fictitious Schedules

A lawyer was found to have committed fraud on the court for filing schedules claiming ownership of property that another court had found not to be the debtor’s property.

2nd Circuit, New York, New York Southern District

April 16, 2024

Judges Plead with Congress to Fix the Mess Created by Lamie

Sitting en banc, three judges in St. Louis effectively barred bifurcated fee arrangements in the Eastern District of Missouri.

8th Circuit, Missouri, Missouri Eastern District

April 10, 2024

District Court Disregards the Bankruptcy Court’s Authority over Post-Petition Fees

Seemingly in conflict with Section 329, a district court decided that a chapter 7 debtor’s attorneys could sue for post-petition fees, even though the firm never disclosed the fee arrangement as required by Section 329 and Rule 2016.

3rd Circuit, New Jersey

April 05, 2024

Barton Doctrine Protected a Receiver from an Automatic Stay Violation

The district court properly reversed and dismissed for lack of subject matter jurisdiction under Barton.

5th Circuit, Texas, Texas Southern District

March 27, 2024

Bankruptcy Courts Have Jurisdiction and Power to Compel Payment of Counsel Fees

The Ninth Circuit BAP says that 28 U.S.C. § 1334(e)(2) gives bankruptcy courts exclusive jurisdiction with regard to disputes over fee allowances.

9th Circuit

March 14, 2024

Creditor Hit with $826,000 in Sanctions for Filing a Meritless Proof of Claim

Refusing to withdraw a meritless claim with prejudice contributed to the decision by Judge Jernigan to impose high-six-figure sanctions.

5th Circuit, Texas, Texas Northern District

February 21, 2024

Supreme Court Won’t Decide Whether ‘13’ Trustees Are Paid When Plans Aren’t Confirmed

Any day now, the Second Circuit could create a split of circuits importuning the Supreme Court to decide whether chapter 13 trustees are paid fees even if no plan is confirmed.

Supreme Court

February 20, 2024

Shareholder Standing Scrutinized in a Case that Presages Truck Insurance

Can Section 327(c) be unconstitutional as applied if it deprives shareholders of standing when the estate might be solvent?

3rd Circuit, Delaware