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ABI Journal

July 25, 2022

FERC Strikes Out a Third Time in the Fifth Circuit on Rejecting Power Contracts

FERC tried the patience of the Fifth Circuit by arguing again that the agency can bar a chapter 11 debtor from rejecting a filed-rate contract.

5th Circuit

July 22, 2022

The Right to Credit Bid Does Not Preclude Charging a Buyer’s Premium at Auction

When a secured lender credit bids, a buyer’s premium can be a legitimate surcharge against the lender’s collateral, Judge Rodriguez says.

5th Circuit, Texas, Texas Southern District

July 21, 2022

First and Ninth Circuits Split on Discharge of Takings Clause Claims

Splitting with the Ninth Circuit, the First Circuit holds that claims under the Takings Clause cannot be discharged in a municipal bankruptcy.

1st Circuit

July 20, 2022

Assets Sold Free and Clear of a Multi-Employer Pension Plan’s Withdrawal Liability

The Seventh Circuit has yet to rule precisely on whether the bankruptcy court can sell assets free and clear of successor liability.

7th Circuit, Illinois, Illinois Southern District

July 15, 2022

Change in Decisional Law Requires Plan Amendment in One Year, Seventh Circuit Says

To take advantage of a change in decisional law, a plan must be modified within the time limits imposed by Federal Rule 60(c), the Seventh Circuit says.

7th Circuit

July 12, 2022

Third Circuit Sets the Standard for Qualification of a Future Claimants’ Representative

A representative of future claimants must meet a higher standard than disinterestedness, the Third Circuit said, but technical conflicts may not be disqualifying.

3rd Circuit

July 07, 2022

May a Judge Revoke a Small Business Designation under Subchapter V of Chapter 11?

Bankruptcy Judge Gunn found the power to revoke a small business designation and proceed under ‘traditional’ chapter11 in lieu of dismissing or converting to chapter 7.

D.C. Circuit

July 01, 2022

Four Circuits Now Permit Fraudulent Transfer Attacks on Real Estate Tax Foreclosures

Circuit courts are split 4/3 on their interpretation of Supreme Court precedent holding that regularly conducted mortgage foreclosures are immune from fraudulent transfer attack.

2nd Circuit

June 29, 2022

Lender Defaulted on the Merits for ‘Prolonged, Extraordinary’ Discovery Violations

Despite contrary Second Circuit dicta, retiring Judge Robert Drain certified a nationwide class in a suit for violation of the discharge injunction.

2nd Circuit, New York, New York Southern District

June 28, 2022

Supreme Court to Decide Whether Section 363(m) Is a Jurisdictional Bar to Appeal

The Supreme Court now has two bankruptcy cases on the calendar for argument in the term to begin in October.

Supreme Court