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ABI Journal

May 17, 2022

Importance of the Supreme Court’s Upcoming Bartenwerfer Decision Seen in Florida Case

The decision by the Supreme Court next term in Bartenwerfer will tell us whether debts can be automatically nondischargeable, even when the debtor is without fault.

11th Circuit, Florida, Florida Southern District

May 12, 2022

An Initial ‘Recipient’ of a Fraudulent Transfer Isn’t Always Liable Under § 550(a)(1)

The Second Circuit says that an initial ‘recipient’ isn’t automatically an initial ‘transferee’ liable for an avoidable transfer under Section 550(a)(1).

2nd Circuit

May 10, 2022

Circuits More Deeply Split on Waiver of Sovereign Immunity for Native American Tribes

Over a vigorous dissent, the First Circuit Joins the Ninth Circuit by holding that Section 106(a) waives tribes’ sovereign immunity.

1st Circuit

May 04, 2022

Cert Granted to Decide: Is a Principal’s Liability for an Agent’s Fraud Nondischargeable?

The circuits are split on whether an innocent debtor’s liability is automatically nondischargeable when an agent or partner committed fraud.

Supreme Court

May 02, 2022

Liens on Impounded Cars Are Judicial Liens that May Be Avoided, Seventh Circuit Says

The City of Chicago argued unsuccessfully that liens on cars are statutory because they arise automatically when the car is impounded.

7th Circuit

April 22, 2022

Fourth Circuit Rules Emphatically that Taggart Applies to All Contempt in Bankruptcy

Reliance on advice of counsel is not a complete defense to contempt citations.

4th Circuit

April 19, 2022

Judge Brown Finds a Loophole Where Debtors Get Discharges Despite Nondisclosure

Had Congress considered the facts that were before Bankruptcy Judge Elizabeth Brown, it surely would have written the statute differently, this writer believes.

10th Circuit, Colorado

April 15, 2022

Target of Lawsuit Doesn’t Have Standing to Appeal a Litigation Funding Agreement

The Eleventh Circuit explained how prudential (or ‘person aggrieved’) standing is a higher standard more difficult to meet than constitutional (or ‘Article III’) standing.

11th Circuit

April 11, 2022

BAP Describes When a Nonbankruptcy Court’s Order Does or Does Not Violate the Stay

If a proceeding is sub judice when the defendant files bankruptcy, the plaintiff should figure out whether a decision after bankruptcy would violate the automatic stay.

9th Circuit

April 08, 2022

‘Reasonable Possibility’ of a Surplus Gives a Debtor Standing in Chapter 7

Due process considerations mean it’s not harmless error if a debtor was denied standing improperly.

6th Circuit, Tennessee, Tennessee Middle District