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ABI Journal

September 30, 2022

Although It Paid Creditors in Full, Eleventh Circuit Subordinates an Unauthorized Loan

Eleventh Circuit gives the bankruptcy judge wide discretion in subordinating debts and denying retroactive approval of loans.

11th Circuit

September 28, 2022

A Cured Breach Still Invokes Section 365(b)(1)’s Landlord Protections, Circuit Says

Adequate assurance of future performance may not be required if the debtor has already cured the breach of lease, the Ninth Circuit says.

9th Circuit

September 27, 2022

Judge McAffee Agrees with Former Judge Sontchi on Authorized Corporate Actions

The automatic stay does not bar increasing authorized shares when the debtor is a minority shareholder.

4th Circuit, North Carolina, North Carolina Eastern District

September 22, 2022

The Pandemic Was No Reason for Raising an Investment Banker’s Cap on a Fixed Fee

The length and the effects of the pandemic were capable of being ‘anticipated’ and therefore provide no reason for modifying a fixed fee under Section 328(a).

2nd Circuit, New York, New York Southern District

September 21, 2022

Transfer Occurs When Property Is Placed in Escrow or In Custodia Legis

When disbursement depends on subsequent court approval, the transfer still occurs beforehand when the deposit was made in custodia legis.

8th Circuit, Minnesota

September 20, 2022

Claims Agents Aren’t Junior Judges Ruling on the Validity of Claim Transfers

The transferee of a claim doesn’t have standing to object to recording the transfer of a claim to it on the claims docket, Judge Garrity says.

2nd Circuit, New York, New York Southern District

September 19, 2022

Marrying an Adversary Doesn’t Mean Disqualification, Third Circuit Says

Following the Model Rules and erecting ethical screens allows adversary lawyers to date and marry.

3rd Circuit

September 16, 2022

Seventh Circuit Limits a U.S. Court’s Jurisdiction over Creditors Abroad

Foreign creditors not subject to ‘specific personal jurisdiction’ in the U.S. can violate the automatic stay with impunity.

7th Circuit

September 15, 2022

Second Circuit Definitively Defines ‘Inquiry Notice’ Under New York Law

Saving Revlon’s bank $500 million, the Second Circuit holds that the law of restitution allows a bank to recover payments made mistakenly when the recipient had no right to receive the payment.

2nd Circuit

September 13, 2022

Being Tossed Off a Committee Doesn’t Confer Appellate Standing, District Judge Says

Being removed from an official committee doesn’t harm the former member’s pecuniary interests and therefore doesn’t confer appellate standing.

5th Circuit, Louisiana, Louisiana Eastern District