September 18, 2023
The Absolute Priority Rule Is Alive and Well in Individual Chapter 11 Cases
The BAPCPA amendments in 2005 did not abrogate the absolute priority rule for individuals in chapter 11, Bankruptcy Judge Russin says.
11th Circuit, Florida, Florida Southern DistrictSeptember 12, 2023
Deferred Settlement Agreements Aren’t Executory Contracts and Can’t Be Assumed
The Ninth Circuit BAP affirms that a deferred settlement agreement can’t be assumed under Section 365.
9th CircuitSeptember 06, 2023
Contesting the Election of a ‘Permanent’ Trustee Is Compensable, Judge Goldblatt Says
Contesting the election of a chapter 7 trustee isn’t like defending a fee application, which Baker Botts held to be noncompensable.
3rd Circuit, DelawareSeptember 01, 2023
If Bankruptcy Occurs on the Eve of Trial, Is There ‘Cause’ to Modify the Stay?
Delaware’s Judge Craig Goldblatt makes a ‘common-sense judgment’ in deciding whether to allow a prepetition lawsuit to proceed in state court.
3rd Circuit, DelawareAugust 31, 2023
A RICO Case Shows that Final Fee Allowances Don’t Confer Immunity
The RICO suit by Jay Alix Against McKinsey mostly survived a motion to dismiss.
2nd Circuit, New York, New York Southern DistrictAugust 29, 2023
Eleventh Circuit Narrowly Reads a State Fee-Shifting Statute
The lawsuit was under federal law, not state law, even though Section 544(b)(1) incorporated state fraudulent transfer law.
11th CircuitAugust 28, 2023
Four Circuits Agree: Debtors Get Refunds for Overpayment of U.S. Trustee Fees
With four circuits in agreement, the Supreme Court isn’t likely to grant cert to rule on whether chapter 11 debtors are entitled to refunds for overpayment of U.S. Trustees fees that were held unconstitutional in Siegel.
9th CircuitAugust 23, 2023
Fourth Circuit: State Law Claims for Discharge Violations Are Not Preempted
The Fourth Circuit declined to follow the First and Sixth Circuits on preemption of automatic stay violations by expanding the ban to redress for discharge violations.
4th CircuitAugust 18, 2023
State Law Requiring Exhaustion of Administrative Remedies Won’t Divest Jurisdiction
Neither a contract nor state law requiring exhaustion of administrative remedies can divest the bankruptcy court of ‘core’ jurisdiction, even after plan confirmation.
D.C. CircuitAugust 17, 2023
Fifth Circuit Adheres to ‘Person Aggrieved’ for Appellate Standing in Bankruptcy
Bankruptcy courts can have subject matter jurisdiction to approve settlements between nondebtors.
5th Circuit