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ABI Journal

January 20, 2022

Eleventh Circuit Takes Sides on Circuit Split by Upholding the 2018 Increase in U.S. Trustee Fees

On an issue the Supreme Court will decide this spring, the Eleventh Circuit broke the tie among the circuits by finding no unconstitutional lack of uniformity when the 2018 increase in U.S. Trustee fees was not immediately applicable in two states with Bankruptcy Administrators.

11th Circuit

January 19, 2022

Another District Judge Emphatically Rejects a Plan with Non-Debtor Third-Party Releases

A district judge in Virginia holds that third-party, non-debtor releases must be approved by district judge under Stern and must comply with the strictures of Federal Rule 23.

4th Circuit, Virginia, Virginia Eastern District

January 13, 2022

Bar to Challenging Taxes in Bankruptcy Court Isn’t Retroactive, Eleventh Circuit Says

The Eleventh Circuit opinion has important dicta on whether or not the tort of ‘continuous trespass’ exists in New York.

11th Circuit

January 12, 2022

Supreme Court to Resolve Circuit Split on the 2018 Increase in U.S. Trustee Fees

The Supreme Court granted certiorari to decide whether the 2018 increase in U.S. Trustee fees violated the Bankruptcy Clause because it was not immediately applicable in two states with Bankruptcy Administrators.

Supreme Court

January 11, 2022

Purdue District Judge Authorizes Appeal to the Second Circuit on Non-Debtor Releases

The district judge who overturned confirmation of Purdue’s chapter 11 plan is requiring the debtor to expedite the appeal to the Second Circuit.

2nd Circuit

January 10, 2022

BAP Says that a Rule 41 Voluntary Dismissal Can Incorporate Discovery Sanctions

The BAP decision on voluntary dismissal under Rule 41 adds credence to the idea that bankruptcy courts can attach conditions to a debtor’s voluntary dismissal under Section 1307(b).

6th Circuit

January 06, 2022

Majority of Courts Use Confirmation Date to Value a Lender’s Collateral in Cramdown

Courts are split when it comes to deciding whether the confirmation date or the filing date should be used to value a secured lender’s collateral in cramdown.

10th Circuit, New Mexico

January 05, 2022

Split Grows on Barring Fraudulent Transfer Attacks on Real Estate Tax Foreclosures

Circuit courts differ on their understanding of Supreme Court precedent and are now split 3/3 on whether a real estate tax foreclosure can be set aside as a constructive fraudulent transfer.

6th Circuit

January 04, 2022

Lender Socked in Dallas with $17 Million in Damages for Breach of Contract and Fraud

A lender’s breach of a factoring agreement forced a company into bankruptcy that would have survived otherwise, Judge Jernigan says.

5th Circuit, Texas, Texas Northern District

January 03, 2022

Opinion Finding Fraud Shows the Dangers in an Agreement to Finance Litigation

Chapter 7 trustee was precluded from terminating a lawsuit because a secured lender had been given the right to settle.

3rd Circuit, Delaware