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ABI Journal

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 District

September 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 Circuit

September 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, Delaware

September 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, Delaware

August 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 District

August 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 Circuit

August 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 Circuit

August 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 Circuit

August 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. Circuit

August 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