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 CircuitApril 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 DistrictApril 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 DistrictApril 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 CourtApril 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 CircuitApril 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, DelawareMarch 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 CircuitMarch 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, ColoradoMarch 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 CircuitMarch 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