November 08, 2023

A Dischargeability Complaint Filed Without Investigation Resulted in Sanctions

We focus on ethics two days in a row, given the recent disturbing events in Houston.

9th Circuit, California, California Eastern District

November 07, 2023

Lawyer Must Disclose a Client’s Misconduct, Even When It’s ‘Uncomfortable’

Lawyers aren’t guarantors for a client’s misconduct, but they may be sanctioned for a coverup.

3rd Circuit, Pennsylvania, Pennsylvania Western District

November 02, 2023

Judge Goldblatt on the Imputation of Fraudulent Intent to a Delaware Corporation

The fraudulent intent of an individual who controls a corporation can be imputed to the corporation itself, even if the board is unaware of fraud.

3rd Circuit, Delaware

November 01, 2023

A Debtor Can’t Assign Only Part of an Executory Contract, Fifth Circuit Says

Indemnification rights in an executory contract can’t be assigned without assuming and assigning the entire contract.

5th Circuit

October 31, 2023

It’s Ok for Lenders to ‘Manufacture’ a Favorable Venue, Delaware Judge Says

A Delaware opinion states that debtors can’t reincorporate to manufacture venue, but it’s permissible for lenders to do so.

3rd Circuit, Delaware

October 30, 2023

Judge Faris Explains Why a Hypothetical Chapter 7 Sale Isn’t Necessarily ‘FMV’

A chapter 7 trustee’s obligation to sell can mean that chapter 7 prices don’t fit the ordinary definition of fair market value.

9th Circuit, Hawaii

October 26, 2023

Issue Preclusion Saddles Alex Jones with $1.2 Billion in Nondischargeable Debt

Bankruptcy Judge Christopher Lopez of Houston will hold trials that could result in more nondischargeable debt for Alex Jones.

5th Circuit, Texas, Texas Southern District

October 25, 2023

Bankruptcy Judge Refuses to Enforce an Arbitration Agreement

An exculpation clause in a chapter 11 plan protected the owner’s counsel from a malpractice suit.

6th Circuit, Ohio, Ohio Southern District

October 24, 2023

In Sub V, a Class with No Votes Isn’t Considered in Confirming a Chapter 11 Plan

Former Bankruptcy Judge David R. Jones disagreed with a colleague, who had held that a non-voting class is considered as having voted against a plan.

5th Circuit, Texas, Texas Southern District

October 23, 2023

Labor Union Beats Back a Motion to Transfer Venue to the Bankruptcy Court

A district judge, who had been a bankruptcy and BAP judge, narrowly interpreted 28 U.S.C. § 1412 as being inapplicable to pending suits only “related to” the bankruptcy.

10th Circuit, Kansas