February 02, 2017

Fourth Circuit Follows Pre-Code Law Despite Contrary Legislative History

A bank deposit is only a substitution, not a transfer of property, circuit holds.

4th Circuit

February 01, 2017

District Courts Collide Head-On over Maritime Liens for ‘Necessaries’

Circuit split over maritime liens appears headed for the Supreme Court.

11th Circuit, Florida, Florida Northern District

January 31, 2017

A Proper Foreclosure Sale Can Never Be a Preference, Judge Holds

Despite gaining more than through chapter 7, purchasing at foreclosure is no preference.

3rd Circuit, Pennsylvania, Pennsylvania Western District

Paying for a Car in Full and Having Exclusive Possession Don’t Result in Ownership

Strict adherence to Michigan law required for ownership of an automobile.

6th Circuit, Michigan, Michigan Eastern District

January 30, 2017

Bankruptcy Management Solutions’ Exclusive Banking Arrangement Upheld in Seventh Circuit

Circuit Judge Posner finds no Bank Holding Company Act violation in exclusive use of Rabobank NA.

7th Circuit

January 26, 2017

Explicit Provision Required to Maintain Secured Status in a Plan

Creditor lost secured status by sloppy drafting.

7th Circuit, Illinois, Illinois Northern District

January 25, 2017

No Subordination in Ninth Circuit for a Stock Conversion Claim

Sympathy for the creditor arguably drove appeals court not to invoke subordination.

9th Circuit

Assets Are Sold Free & Clear of Debtor’s Insurance Experience Rating

New Hampshire judge follows the First Circuit BAP in keeping down a buyer’s insurance premiums.

1st Circuit, New Hampshire

January 24, 2017

Georgia Court Differs with Circuit Opinions on PBGC Claim Calculation

Court says circuit opinions on PBGC claims before Supreme Court’s Raleigh opinion are no longer good law.

11th Circuit, Georgia, Georgia Southern District

Litigation Funding Could Be Champertous in Some States

Financing litigation is champertous if the lender exercises control.

4th Circuit, North Carolina, North Carolina Western District