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ABI Journal

April 11, 2022

BAP Describes When a Nonbankruptcy Court’s Order Does or Does Not Violate the Stay

If a proceeding is sub judice when the defendant files bankruptcy, the plaintiff should figure out whether a decision after bankruptcy would violate the automatic stay.

9th Circuit

April 08, 2022

‘Reasonable Possibility’ of a Surplus Gives a Debtor Standing in Chapter 7

Due process considerations mean it’s not harmless error if a debtor was denied standing improperly.

6th Circuit, Tennessee, Tennessee Middle District

April 07, 2022

‘Once a Creditor, Always a Creditor,’ Even if the Claim Is Paid, Judge Phillips Says

Being branded as a creditor is like a tattoo; it won’t ever come off.

4th Circuit, Virginia, Virginia Eastern District

April 06, 2022

Supreme Court Rules Again on Arbitration, Saying Nothing Explicitly About Bankruptcy

The Supreme Court is still giving no hints about whether arbitration agreements are enforceable in bankruptcy cases.

Supreme Court

April 04, 2022

A Contempt Finding that’s Not ‘Final’ Can’t Be Appealed, Second Circuit Says

A prevailing party can’t appeal arguably erroneous findings.

2nd Circuit

April 01, 2022

Delaware District Judge Says: Don’t Use ‘Nunc Pro Tunc’ When You Mean ‘Retroactive’

Submitting a retention order with the wrong word resulted in a pivotal issue on appeal.

3rd Circuit, Delaware

March 28, 2022

Converting a Claim Based on Securities to Judgment Won’t Bar Subordination, BAP Says

A lien securing a claim based on the purchase or sale of securities is subordinated, just like the claim, the Ninth Circuit BAP says.

9th Circuit

March 25, 2022

UCC’s ‘Predominant Purpose’ Text Isn’t Used to Decide Priority Status Under § 503(b)(9)

A hybrid contract covering both goods and services is accorded priority status under Section 503(b)(9) only for the value of the goods, even if the contract primarily involved the sale of goods.

10th Circuit, Colorado

March 23, 2022

Circuit Split Widens Sovereign Immunity for Section 544(b) Claims

The circuits are now split 2/1 on the waiver of sovereign immunity under Section 544(b) for lawsuits by a trustee based on claims that could have been made by an actual creditor.

4th Circuit

March 21, 2022

Invoking Mirant, Fifth Circuit Permits Rejection of a Gas Pipeline Contract

Unsuccessfully attempting to punch homes in Mirant, FERC emerged from the Fifth Circuit with no power to stop bankruptcy courts from rejecting contracts otherwise within FERC’s jurisdiction.

5th Circuit