August 16, 2016

Bankruptcy Court Sometimes Lacks Jurisdiction over Tax Disputes, Judge Rules

‘Related to’ jurisdiction arises only if unsecured creditors are affected, judge holds.

7th Circuit, Indiana, Indiana Southern District

August 15, 2016

Gift Cards Denied Priority Status in Delaware, Contravening Prior Delaware Decision

Delaware’s Judge Kevin Gross declines to follow prior decision by visiting judge.

3rd Circuit, Delaware

August 10, 2016

Courts Split on Per-Plan or Per-Debtor Acceptance for Cramdown Confirmation

Section 1111(b) election does not require a due-on-sale clause in a restructured mortgage.

9th Circuit, Arizona

August 08, 2016

Stern Objections Always Must Be Raised to Avoid Potential Malpractice

The lawyer who lost Wellness International may be facing malpractice liability.

7th Circuit, Illinois, Illinois Northern District

August 08, 2016

Calculation of Punitive Damages Did Not Consider Amount of Attorneys’ Fees

$50,000 in punitive damages held excessive when actual damages were $1,500.

11th Circuit, Alabama, Alabama Middle District

August 04, 2016

Preference May Be Offset by an Unpaid Administrative Claim, Judge Carey Rules

Automatic disallowance under Section 502(d) held not applicable to administrative claims.

3rd Circuit, Delaware

August 02, 2016

Section 303(a) Precludes Substantive Consolidation Among Religious Institutions

Pleading hierarchical control is insufficient for substantive consolidation.

8th Circuit, Minnesota

August 01, 2016

Third Circuit Precludes WARN Act Liability for Acquirers in Typical LBOs

Common ownership and management aren’t enough to prove ‘single employer’ liability.

3rd Circuit

August 01, 2016

New York District Judge Lays Down Lenient Standard for Imputing Fraudulent Intent

Former Bankruptcy Judge Gerber reversed in Lyondell for being too strict, then for being too lenient.

2nd Circuit, New York, New York Southern District

July 29, 2016

Circuits Split on Invoking Safe Harbor Whenever a Bank Serves as Conduit

Seventh Circuit won’t immunize an LBO from fraudulent transfer just by using a bank conduit.

7th Circuit