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ABI Journal

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 Court

December 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 District

November 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 District

November 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 Circuit

November 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, Delaware

November 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 District

November 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 District

November 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 District

November 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 Circuit

November 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