December 05, 2023
Supreme Court Seems Dubious About Purdue’s Nonconsensual, Nondebtor Releases
At oral argument, the justices were focused on whether the word “appropriate” in Section 1123(b)(6) allows chapter 11 plans to include nonconsensual, nondebtor third-party releases.
Supreme CourtDecember 01, 2023
Sub V Plan with Nondebtor Release Approved over Opposition from the Affected Class
A decision from a New York bankruptcy court makes nondebtor releases easier to obtain in Subchapter V than in large, mass tort chapter 11 cases.
2nd Circuit, New York, New York Southern DistrictNovember 29, 2023
Dispute over Part of a Claim Disqualifies an Involuntary Petitioner
The 2005 amendment to Section 303(b)(1) disqualifies an involuntary petitioner if there is a dispute as to even part of the creditor’s claim.
2nd Circuit, New York, New York Southern DistrictNovember 28, 2023
Ninth Circuit: State Law Can’t Require More than What Rule 3001 Requires for Claim Validity
Reversing the BAP, the Ninth Circuit (erroneously) holds that state law cannot demand more documentation for a proof of claim than Bankruptcy Rule 3001 requires for prima facie validity.
9th CircuitNovember 21, 2023
Actual Damages Not Required to Recover Attorneys’ Fees for a Stay Violation
Judge Goldblatt slaps creditors with $665,000 in damages for violating the automatic stay.
3rd Circuit, DelawareNovember 16, 2023
Is an Option an Executory Contract or Not?
When there is a recorded option to purchase real estate, Prof. Westbrook would have analyzed the specific performance rights of the holder of the option under state law, not the question of whether the option was executory.
7th Circuit, Indiana, Indiana Southern DistrictNovember 15, 2023
Two Judges Agree: A Class with No Votes Isn’t Considered in Confirming a Sub V Plan
One month apart, two Houston bankruptcy judges held that a non-voting class is not deemed to have voted against a plan.
5th Circuit, Texas, Texas Southern DistrictNovember 14, 2023
Rooker-Feldman Only Applies to Someone Who Was a Party in State Court
Rooker-Feldman is applied narrowly these days and isn’t a substitute for collateral estoppel.
11th Circuit, Florida, Florida Middle DistrictNovember 13, 2023
In MOAC on Remand, the Second Circuit Vacates the Order Assigning the Lease
The Second Circuit is remanding to district court for a ruling on the relief available to the landlord, given that the sale closed years ago.
2nd CircuitNovember 10, 2023
Georgia Judge Approves a Chapter 11 Plan with Nonconsensual, Nondebtor Releases
Although the Supreme Court will soon rule on the permissibility of nonconsensual releases, Bankruptcy Judge Sigler approved a plan with nondebtor releases under existing Eleventh Circuit precedent.
11th Circuit, Georgia, Georgia Northern District