Skip to main content
ABI Journal

July 10, 2024

A Partial Ethical Wall Didn’t Give Rise to Disinterestedness, Judge Kenney Said

Expedience is no substitute for disinterestedness when it comes to retention of a chapter 11 debtor’s general counsel.

4th Circuit, Virginia, Virginia Eastern District

July 09, 2024

First Nixing $240,000 for Contempt, Fifth Circuit Approves $450,000 for Civil Contempt

Having previously set aside a $240,000 sanction as criminal contempt, the Fifth Circuit affirmed $450,000 in civil contempt against the same contemnor in the same bankruptcy case.

5th Circuit

July 08, 2024

Courts Are Now Split on Ignoring Nonvoting Classes in Subchapter V Plans

Disagreeing with two bankruptcy courts in Houston, Miami’s Judge Isicoff holds that a Sub V plan with a nonvoting class can be confirmed only as a nonconsensual plan.

11th Circuit, Florida, Florida Southern District

July 05, 2024

A Claim Is Unliquidated if It Requires the Exercise of Judgment or Discretion

Tort claims are usually unliquidated, but a contract claim is liquidated if it’s precisely determinable by agreement or operation of law, Judge Lori Vaughan says.

11th Circuit, Florida, Florida Middle District

July 01, 2024

Supreme Court to Rule on Waiver of Sovereign Immunity for Suits Under Section 544(b)(1)

To resolve a circuit split, the Supreme Court has agreed to decide whether a trustee can sue the government to recover a fraudulent transfer under state law when sovereign immunity would bar an ‘actual creditor’ from suing.

Supreme Court

June 28, 2024

Supreme Court Reverses Purdue: No Nondebtor, Third-Party, Nonconsensual Releases

Justice Gorsuch for the majority bans third-party releases broader than a discharge for those who don’t surrender all their assets to the court.

Supreme Court

June 27, 2024

Misleading Ads to Poach a Debtor’s Customers Is No Stay Violation, Circuit Says

The Second Circuit gives competitors license to mount false advertising unless it’s ‘virtually certain’ to affect a debtor’s customer contracts or goodwill.

2nd Circuit

June 26, 2024

Payments Made with Insurance Nevertheless Were Preferences, District Judge Says

Payments from insurance must be properly structured to avoid preference liability.

5th Circuit, Texas, Texas Southern District

June 20, 2024

Corporate Debts in Sub V Can Be Nondischargeable, Judge Says, Differing with His BAP

Bankruptcy Judge Hercher agreed with the results in the Fourth and Fifth Circuits but disagreed with some of the appeals courts’ logic.

9th Circuit, Oregon

June 18, 2024

An ‘Admin’ Claim Isn’t Mandated for Nonpayment of Rent Before Automatic Rejection

To align with congressional intent underpinning Section 365(d)(3), Judge Gravelle gave the landlord an administrative claim for base rent due after filing and before automatic rejection.

3rd Circuit, New Jersey