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ABI Journal

August 21, 2024

New York Court Holds that ‘Future’ Asbestos Claims Can Be Discharged Without a Trust

Professors disagree on whether latent asbestos claims can be discharged without a trust for future claimants.

2nd Circuit, New York, New York Southern District

August 15, 2024

Another Bankruptcy Judge Decided that Sub V Classes with No Votes Aren’t Accepting

Bankruptcy Judge Paul Bonapfel differed with two judges in Houston by holding that a nonaccepting class in Subchapter V means that a plan must be confirmed in cramdown.

11th Circuit, Georgia, Georgia Northern District

August 14, 2024

Preserving Defensive Setoff Rights Doesn’t Require Filing a Claim, Judge Glenn Says

Defensive setoff rights are not discharged by chapter 11 confirmation, even when no proof of claim was filed.

2nd Circuit, New York, New York Southern District

August 13, 2024

Denial of a Debtor’s Motion to Dismiss a Petition Isn’t Appealable, Second Circuit Says

In practical effect, the Second Circuit’s opinion means that a chapter 7 debtor may never appeal denial of a motion to dismiss a petition.

2nd Circuit

August 12, 2024

Supreme Court’s Jarkesy Opinion Clarifies Granfinanciera on Jury Trial Rights

A Supreme Court nonbankruptcy decision means there is no right to a jury trial in the claims-allowance process in bankruptcy.

Supreme Court

August 09, 2024

Nondischargeability Is a ‘Thing’ for Corporate Subchapter V Debtors, Judge Thorne Says

The tide is turning against corporate Sub V debtors. Two bankruptcy judges now side with two circuits in holding that debts of corporate debtors can be nondischargeable.

7th Circuit, Illinois, Illinois Northern District

August 08, 2024

Circuit Says Retaining Jurisdiction Not Required to Impose Fees Under Section 303(i)

Motions for fees must be made within 14 days of the entry of judgment.

1st Circuit

August 07, 2024

Fifth Circuit Tells Us What Ritzen and Travelers Mean and Don’t Mean

To revisit denial of a lift-stay motion, the prior order denying modification of the stay isn’t required to say ‘without prejudice.’

5th Circuit

August 02, 2024

Split Fourth Circuit Panel Bars Use of Equity to Correct an Oversight in Retention

The majority in the Fourth Circuit based a bright-line rule on the presence of the word ‘the’ in Section 327(a).

4th Circuit

July 31, 2024

Tyler Applied Retroactively to Set Aside a Judgment of Tax Foreclosure

Tyler was applied retroactively because the debtor’s efforts to set aside a tax foreclosure judgment were ‘in the pipeline’ when bankruptcy began.

3rd Circuit, New Jersey