August 19, 2022

Fifth Circuit Holds that Surety Bonds Are Not Executory Contracts

The Fifth Circuit said in dicta that courts might apply the ‘functional approach’ rather than the Countryman test in deciding whether a triangular contract is executory.

5th Circuit

August 08, 2022

First Circuit BAP Limits the Student Loan ‘Borrower Defense’

The First Circuit BAP suggests that invocation of the borrower defense with regard to dischargeability of student loans requires exhaustion of administrative remedies in the Department of Education.

1st Circuit

August 05, 2022

Ninth Circuit Invited to Sit En Banc Regarding Dischargeability of Disciplinary Costs

The Ninth Circuit again questions the Supreme Court’s ‘atextual’ analysis of Section 523(a)(7).

9th Circuit

August 04, 2022

Caymans Recognized as the ‘COMI’ for a Property Company Operating in China

A country that was ineligible to host a nonmain foreign proceeding was nonetheless held to have the foreign main proceeding.

2nd Circuit, New York, New York Southern District

August 01, 2022

A Judgment for Punitive Damages Might Not Support Nondischargeability Automatically

Jury instructions and a special verdict form can determine whether issue preclusion automatically results in nondischargeability.

5th Circuit, Texas, Texas Southern District

July 21, 2022

First and Ninth Circuits Split on Discharge of Takings Clause Claims

Splitting with the Ninth Circuit, the First Circuit holds that claims under the Takings Clause cannot be discharged in a municipal bankruptcy.

1st Circuit

July 19, 2022

Corporate Officer Has a Nondischargeable Debt from the Company’s Fraud

Tenth Circuit insinuates that a debtor may have a nondischargeable debt even if the debtor did not personally benefit from fraud.

10th Circuit

June 29, 2022

Lender Defaulted on the Merits for ‘Prolonged, Extraordinary’ Discovery Violations

Despite contrary Second Circuit dicta, retiring Judge Robert Drain certified a nationwide class in a suit for violation of the discharge injunction.

2nd Circuit, New York, New York Southern District

June 27, 2022

A Deceased Chapter 13 Debtor Can Still Obtain a Discharge, Judge Parker Says

Death is a reason for waiving the requirement for completing a financial management course.

5th Circuit, Texas, Texas Western District

June 14, 2022

Published Notice Doesn’t Result in Discharge of Some Types of Lease Claims

Status as a ‘known’ or ‘unknown’ creditor misses the point when a lease was either assumed or rode through the chapter 11 case, Judge Jernigan says.

5th Circuit, Texas, Texas Northern District