October 19, 2022

It’s Virtually Impossible to Waive Discharge as an Affirmative Defense, Judge Tucker Says

Waiting four years to raise discharge as a defense does not invoke equitable estoppel or laches.

6th Circuit, Michigan, Michigan Eastern District

October 18, 2022

Otherwise Valid Post-Petition Claims Sometimes Won’t Qualify for Administrative Status

Judge Sarah Hall declined to expand the exception in Reading for post-petition claims to have administrative status.

10th Circuit, Oklahoma, Oklahoma Western District

October 17, 2022

Debtor Can’t Compel Arbitration on an Involuntary Petition

A creditor can’t be compelled to arbitrate the validity of a claim before the bankruptcy court decides whether the involuntary petitioner’s claim is subject to a bona fide dispute.

6th Circuit, Tennessee, Tennessee Middle District

October 14, 2022

Another Court Holds that a Debtor Has a Property Interest in Contracts, Not Customers

Once the debtor loses the right to do business, taking customers for no consideration isn’t a fraudulent transfer, Judge Isgur holds.

5th Circuit, Texas, Texas Southern District

October 13, 2022

Misleading Advertising to Poach a Debtor’s Customers Is No Stay Violation

False advertising that violates non-bankruptcy law isn’t necessarily a violation of the automatic stay, New York district judge says.

2nd Circuit, New York, New York Southern District

October 12, 2022

The War Between National and Local Rates Continues in Eastern Virginia

Counsel run the risk of being paid lower local rates in ‘mega’ cases filed in the Eastern District of Virginia.

4th Circuit, Virginia, Virginia Eastern District

October 11, 2022

Court Halts States’ Police and Regulatory Suits against Non-Debtor Johnson & Johnson

In spreading the automatic stay, the bankruptcy court again employed the traditional analysis without recognition that the non-debtors are solvent.

3rd Circuit, New Jersey

October 05, 2022

When Renewed Pre-Petition Contracts Can and Can’t Have Administrative Status

Claims under pre-petition contracts extended after bankruptcy can have administrative status if there was benefit to the estate, district judge says, reversing the bankruptcy court.

2nd Circuit, New York, New York Southern District

October 04, 2022

New York Judge Splits with Colleagues on Redaction of Crypto Customers’ Names

Judge Glenn allowed the redaction of individual crypto customers’ home and email addresses, but requires the disclosure of their names and the amount of their claims. No redactions for business customers.

2nd Circuit, New York, New York Southern District

October 03, 2022

To Be Nondischargeable, Debtor Must Have Violated Securities Laws, Another Judge Says

Texas judge rules in favor of the debtor on an issue similar to the question coming before the Supreme Court in Bartenwerfer.

5th Circuit, Texas, Texas Eastern District