March 30, 2018
District Court Endorses Opt-Out to Confirm Substantive Consolidation Plans
Augie/Restivo problems are avoided by including opt-out provisions in a substantive consolidation chapter 11 plan.
2nd Circuit, New York, New York Southern DistrictMarch 29, 2018
State Law, Not Filing Date, Governs Distributions to Co-Owners, Fifth Circuit Says
The distributive share to co-owners is not fixed as of the filing date under Section 363(j).
5th CircuitMarch 28, 2018
Madoff Opinions Ease Pleading Requirements in Suits Against Subsequent Transferees
Bankruptcy Judge Vyskocil holds that alter ego need not be alleged to recover from a corporation’s sole shareholder as the beneficiary of a fraudulent transfer.
2nd Circuit, New York, New York Southern DistrictMarch 27, 2018
SIPA Bars General Unsecured Claims for Failure to Transfer Accounts Before Filing
The trustee for a bankrupt broker can ignore an individual customer’s request to transfer securities to a solvent broker and may instead transfer customer accounts in bulk.
2nd Circuit, New York, New York Southern DistrictMarch 23, 2018
‘Snarky’ or Factually Incorrect Emails Are Not Grounds for Rule 9011 Sanctions
Neither oral statements nor emails are sanctionable under Rule 9011, Judge Pappas says.
March 21, 2018
Federal Common Law of Constructive Trust Works When State Law Won’t
Delaware judge shows sympathy for a creditor being stiffed by the debtor.
3rd Circuit, DelawareMarch 20, 2018
Flip Clauses in Swaps Held Enforceable by District Judge in New York
For swaps, the Section 560 safe harbor overrides the anti-ipso facto provisions in the Bankruptcy Code.
2nd Circuit, New York, New York Southern DistrictMarch 16, 2018
Judge Harner Pens a Primer on the Elements of an Executory Contract
Unperformed obligations must be ‘material’ for a contract to be executory.
4th Circuit, MarylandMarch 12, 2018
‘Local vs. National’ Rate Controversy Reemerges in a Catholic Diocese Reorganization
Montana judge cuts committee counsel’s interim allowance to rates charged by debtor’s counsel.
9th Circuit, MontanaMarch 09, 2018
Second Circuit Bars Arbitration in a Class Action for Violating the Discharge Injunction
New case seems inconsistent with Second Circuit’s prior opinion compelling arbitration over an automatic stay violation.
2nd Circuit