May 09, 2019

Creditors of LPs or LLCs Can’t Sue for Breach of Fiduciary Duty

Creditors lack standing in Delaware and other states for derivative liability suits against officers and managers of LPs and LLCs.

3rd Circuit, Delaware

May 08, 2019

Appellate Jurisdiction Doesn’t Terminate on Dismissal of the Underlying Bankruptcy

New Orleans district judge finds discretion in Fifth and Ninth Circuit authority for jurisdiction over an appeal after dismissal of the underlying bankruptcy case.

5th Circuit, Louisiana, Louisiana Eastern District

April 19, 2019

Is a Notice of Removal Filed in Bankruptcy Court Ok? Courts Are Split

Judge in Mississippi remands a suit to state court because the notice of removal was filed with the bankruptcy clerk, not the district court clerk.

5th Circuit, Mississippi, Mississippi Southern District

April 13, 2019

Sovereign Immunity Doesn’t Insulate States from Lien Stripping

For three independent reasons, Judge Taddonio rules that states are not immune from stripping down or stripping off tax liens.

3rd Circuit, Pennsylvania, Pennsylvania Western District

April 05, 2019

Final Orders Allowed in Preference Suits Against Defendants Who Didn’t File Claims

Following dicta in Bellingham, Judge Collins finds no power to enter a final order in a fraudulent transfer suit against a defendant who did not consent.

9th Circuit, Arizona

April 03, 2019

Courts Divided on Venue for Small-Dollar Avoidance Actions

Judges Pappas and Teel permit avoidance actions for small amounts to be prosecuted in the debtors’ bankruptcy courts.

D.C. Circuit

March 15, 2019

Reading Stern Narrowly, Delaware Judge to Issue Final Order in Fraudulent Transfer Suit

Judge Sontchi declines to rule that 28 U.S.C. § 157 is unconstitutional by denominating fraudulent transfer suits as ‘core’ proceedings.

3rd Circuit, Delaware

March 14, 2019

Adversary Proceeding to Enjoin FERC Remains in Bankruptcy Court

District judge won’t withdraw the reference when PG&E rejects power purchase agreements.

9th Circuit, California, California Northern District

February 18, 2019

First Circuit Cans the Puerto Rico Oversight Board as Unconstitutionally Appointed

The appeals court is attempting to avoid chaos despite ruling that the appointment of Puerto Rico Oversight Board members violated the Appointments Clause of the Constitution.

1st Circuit

February 13, 2019

An Objection to Third-Party Releases Must Be Raised in Bankruptcy Court

A non-objecting creditor is bound by a third-party release even if the release may have been improper.

5th Circuit, Texas, Texas Southern District