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ABI Journal

July 28, 2023

A Contract to Produce a TV Series Wasn’t a Personal Services Contract

Contracts with corporations aren’t likely to be personal services contracts.

2nd Circuit, New York, New York Southern District

July 27, 2023

All Future Liability on a Lease Counted for Subchapter V Eligibility

Future liability on a lease was counted as a liquidated, noncontingent debt in calculating whether the Subchapter V debtor had more than $7.5 million in debt.

4th Circuit, Virginia, Virginia Eastern District

July 24, 2023

Fifth Circuit Reaffirms ‘Person Aggrieved’ as the Standard for Appellate Standing

The Fifth Circuit declined to follow the Ninth Circuit in questioning ‘person aggrieved’ as being inconsistent with recent Supreme Court authority.

5th Circuit

July 21, 2023

Ninth Circuit Won’t Give Pro Se Litigants Slack About Consent to Final Adjudication

Wellness International may have undercut prior Second Circuit authority giving pro se litigants a loophole for arguing there was no implied consent to final adjudication by an Article I judge.

9th Circuit

July 19, 2023

A Trustee Receives Statutory Commissions Unless the Amount Is ‘Offensive’

A trustee’s commissions can’t be based on a percentage of disbursements to the trustee’s own counsel, so says a New Jersey district judge.

3rd Circuit, New Jersey

July 14, 2023

Ninth Circuit Cited for Barring So-Called Critical Vendor Orders

A bankruptcy judge in Oregon was unable to follow renowned Bankruptcy Judges ‘Burt’ Lifland and ‘Mike’ Lynn, who granted critical vendor motions.

9th Circuit, Oregon

July 12, 2023

Bartenwerfer Doesn’t Apply if the Debtor Isn’t a Partner or Agent, Bankruptcy Judge Says

Bankruptcy Judge Klinette H. Kindred declined to expand Bartenwerfer by imputing fraud or larceny when the debtor wasn’t a partner or agent.

4th Circuit, Virginia, Virginia Eastern District

July 11, 2023

Ninth Circuit BAP Holds that Debts of Corporate Sub V Debtors Can’t Be Nondischargeable

Disputing the Fourth Circuit line by line and raising the possibility of a circuit split, the BAP and six bankruptcy courts have held that there’s no such thing as nondischargeability for corporate Sub V debtors.

9th Circuit

July 10, 2023

Government to Seek Supreme Court Review of Purdue’s Third-Party, Nondebtor Releases

In a motion to stay the issuance of the mandate, the government has announced that it will be filing a petition for certiorari asking the Supreme Court to review the Second Circuit’s Purdue decision allowing bankruptcy courts to issue releases to nondebtors.

Supreme Court

July 07, 2023

No Sales Free and Clear of a Lien on a Nondebtor Co-owner’s Interest

Although a court may sell a nondebtor’s interest in jointly owned property, the Ninth Circuit BAP won’t permit selling free and clear of lien on the nondebtor’s interest in the property being sold.

9th Circuit