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ABI Journal

April 26, 2022

Eighth Circuit to Decide Whether Avoidance Actions Are Estate Property that Can Be Sold

Authorities are split on whether avoidance actions are estate property that can be sold or can only be prosecuted by the trustee.

8th Circuit, Iowa, Iowa Northern District

April 25, 2022

Another Circuit Says: Old Bankruptcies Aren’t Grounds for Removal to Federal Court

This month, two circuits found no ‘related to’ bankruptcy jurisdiction for climate-change lawsuits against energy companies.

9th Circuit

April 22, 2022

Fourth Circuit Rules Emphatically that Taggart Applies to All Contempt in Bankruptcy

Reliance on advice of counsel is not a complete defense to contempt citations.

4th Circuit

April 21, 2022

Fifth Circuit Majority Bars Reforming Mortgages in Bankruptcy

In a nonprecedential opinion, the Fifth Circuit suggests that a mortgage that could be reformed in state court cannot be reformed in bankruptcy.

5th Circuit

April 20, 2022

Supreme Court Hears Argument on Constitutionality of 2018 Increase in U.S. Trustee Fees

At oral argument, the justices seemed more concerned about the remedy to give if the dual fee system was unconstitutional.

Supreme Court

April 18, 2022

FishDish Proves that Ending Equitable Mootness Didn’t End the World as We Know It

Curtailing equitable mootness will benefit the bankruptcy community by fostering appellate decisions that clarify the standards for confirmation of chapter 11 plans.

8th Circuit, Iowa, Iowa Northern District

April 15, 2022

Target of Lawsuit Doesn’t Have Standing to Appeal a Litigation Funding Agreement

The Eleventh Circuit explained how prudential (or ‘person aggrieved’) standing is a higher standard more difficult to meet than constitutional (or ‘Article III’) standing.

11th Circuit

April 14, 2022

Section 328(c) and Rule 2014(a) Both Permit Denial of All Compensation

Undisclosed representation of the debtor’s principal resulted in denial of all compensation sought by counsel for the corporate debtor.

9th Circuit, California, California Eastern District

April 13, 2022

Texaco’s Plan in 1988 Wasn’t Grounds for Removal to Federal Court, Fourth Circuit Says

In a case that may be headed to the U.S. Supreme Court at least once more, the Fourth Circuit is subjecting 26 multinational oil companies to the tender mercies of the Maryland state courts.

4th Circuit

April 12, 2022

Constructive Notice Won’t Save a Sale Under 363(m) Absent Actual Notice, Seventh Circuit Says

To be a good faith purchaser under Section 363(m), a purchaser must be given actual notice to those with an interest in the property. Constructive notice won’t suffice.

7th Circuit