September 19, 2017

Fee Cap in Section 502(b)(4) Seldom Applies to Contingencies, Ninth Circuit Holds

Ninth Circuit ringingly endorses allowance of prepetition contingent fee arrangements.

9th Circuit

September 18, 2017

Delaware Judge Narrows Jevic to Prohibit Only End-of-Case Priority Skipping

Priority skipping permitted as part of final approval of DIP financing.

3rd Circuit, Delaware

September 15, 2017

Reperfecting a Mortgage Isn’t Grounds for a Fraudulent Transfer

Mistakenly cancelling a mortgage can result in a preference but not a fraudulent transfer if the cancellation is later rescinded.

7th Circuit, Illinois, Illinois Northern District

September 14, 2017

Third-Party Releases Approved Without Awaiting the Outcome of Merit Management

Third-party releases would have been approved even if there were no ‘safe harbor’ defense.

3rd Circuit, Pennsylvania, Pennsylvania Western District

September 11, 2017

Receivership May Not Preclude a Board’s Ability to File Bankruptcy

A receiver who is not ‘disinterested’ can justify putting a company in bankruptcy.

3rd Circuit, Pennsylvania, Pennsylvania Western District

September 05, 2017

Ninth Circuit Splits with Seventh on Sovereign Immunity and Derivative Suits by a Trustee

Ninth Circuit criticizes the Seventh for making the sovereign immunity waiver meaningless for Section 544(b)(1) suits.

9th Circuit

September 01, 2017

Tax Sales Can Be Avoided as Preferences, New Jersey Judge Rules

Federalism concerns do not protect tax foreclosures like they do mortgage foreclosures, Judge Gravelle says.

3rd Circuit, New Jersey

August 31, 2017

Eighth Circuit Broadly Interprets the FDCPA to Protect Consumers

The Eighth Circuit bars clever litigation tactics designed to evade the FDCPA on suits to collect time-barred claims.

8th Circuit

August 30, 2017

Third Party Liability for Debtor’s Counsel Fees Precludes a Charging Lien

Third party liability for attorneys’ fees can leave debtor’s counsel in a worse position following nonpayment.

2nd Circuit, New York, New York Southern District

August 29, 2017

Defamation Claim Is Not a Personal Injury Tort, New York Judge Rules

California’s anti-SLAPP statute is substantive, but not entirely enforceable in federal court.

2nd Circuit, New York, New York Southern District