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ABI Journal

August 13, 2025

Liquidating Trustee Ousted for an Undisclosed Litigation Funding Agreement

The pricey litigation funding agreement had not been disclosed to creditors before confirmation.

Texas Northern District

August 11, 2025

Bestwall Concurrence Believes in ‘Liberalization’ of Bankruptcy Powers

The concurring opinion in Bestwall could be read to suggest that Circuit Judge G. Steven Agee might have an open mind if a confirmed plan comes to the Fourth Circuit on appeal.

4th Circuit

August 08, 2025

Bestwall Dissenting Opinion Reads Like Dismissal of LTL Mgmt for a Bad Faith Filing

The Bestwall dissenter understands the Bankruptcy Clause as having the 18th century definition of ‘bankruptcy,’ thus requiring insolvency or inability to pay debts.

4th Circuit

August 07, 2025

Fourth Circuit Rules on Jurisdiction, not ‘Financial Distress’ for a Chapter 11 Debtor

Fourth Circuit majority and dissenting opinions might be read to suggest that Bestwall could have tough sledding on an appeal from confirmation since the debtor is solvent.

4th Circuit

August 06, 2025

Trial-Ready Case Remanded to State Court, Not Transferred to Bankruptcy Court

District judge was reluctant to have the bankruptcy court decide whether a suit removed to federal court should be remanded to the state trial court.

Connecticut

August 05, 2025

No Substitutes for a Stay Pending Appeal to Avoid Mootness of a Sale Order

The appeal involved the sale of defensive appellate rights but wasn’t grounds for the decision by the Eighth Circuit.

8th Circuit

July 24, 2025

Delaware’s Judge Silverstein Writes an Opinion with Stuff on Practice and Procedure

A trustee could sue on behalf of a dissolved Delaware corporation.

July 23, 2025

Second Circuit Courts Narrowly View Finality of Bankruptcy Appeals

A district court in New York holds that denial of a settlement motion is not final and not appealable.

New York Eastern District

July 21, 2025

Paying a Post-Petition Retainer Without Advance Approval Was Ok

Approving a retainer after the fact was a sensible exercise of the court’s discretion when the new lawyer’s services were necessary to avoid dismissal of the Subchapter V case.

New York Northern District

July 01, 2025

‘Serious Concerns’ About a Conflict Aren’t Enough to Disqualify a Trustee’s Counsel

A firm wasn’t disqualified when attorneys who left the firm long ago had represented an adversary in a possibly similar engagement.

11th Circuit, Florida, Florida Southern District