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ABI Journal

December 15, 2021

Arbitration Clause Not Enforceable When the Contract Itself Was Rejected

Judge Jernigan in Dallas differs with a judge in Delaware by declining to enforce an arbitration agreement that was part of a rejected contract.

5th Circuit, Texas, Texas Northern District

December 11, 2021

Complaint Survives Against Chicago for Not Releasing Impounded Cars Immediately

Despite Fulton, a Chicago bankruptcy judge rules that the City of Chicago might have violated Section 362(a)(4), (a)(6) or (a)(7) by refusing to release impounded cars immediately after a debtor files a chapter 13 petition.

7th Circuit, Illinois, Illinois Northern District

December 09, 2021

Government Urges Supreme Court to Review Constitutionality of the 2018 Increase in U.S. Trustee Fees

The U.S. Solicitor General wants the Supreme Court to resolve a circuit split and decide whether the increase in U.S. Trustee fees violated the Bankruptcy Clause because it was not immediately applicable in two states with bankruptcy administrators.

Supreme Court

December 08, 2021

Delaware Bankruptcy Judge Dismisses a Lawsuit for Forum Non Conveniens

Although a chapter 11 plan can bind parties throughout the world, Judge Sontchi wouldn’t let a foreign debtor sue a foreign bank in the Delaware bankruptcy court over a transaction that occurred in England.

3rd Circuit, Delaware

December 02, 2021

No Duty to Release an Attachment After Fulton, Ninth Circuit BAP Says

The BAP decision may have a hint that failure to stop proceedings after bankruptcy can be an automatic stay violation, even after Fulton.

9th Circuit

December 01, 2021

BAP Rules that Tolling in Section 108(c) Does Not Apply to Notices Under Section 546(b)

In dicta, the Ninth Circuit BAP says that equitable estoppel cannot be applied against a debtor in view of the debtor’s fiduciary responsibilities.

9th Circuit

November 29, 2021

Merely ‘Technical’ Stay Violations Don’t Obviate Section 362(k) Sanctions, BAP Says

Even when the debtors are not parties to the suit, the stay is violated when a creditor pursues an action to collect a debt owing by the debtors, so says the Ninth Circuit BAP.

9th Circuit

November 23, 2021

Disastrous Litigation Strategy Didn’t Justify Stay Modification, Eleventh Circuit Says

Stay modification is required even if the creditor wants to intervene in state court to help the bankrupt estate.

11th Circuit

November 22, 2021

Johnson & Johnson Venue Transferred from North Carolina to New Jersey

Deciding to transfer venue, a North Carolina bankruptcy judge said that the debtor underwent a corporate restructuring ‘purely for the purpose of filing bankruptcy.’

4th Circuit, North Carolina, North Carolina Western District

November 18, 2021

Reducing a Personal Guarantee Under a Plan Isn’t a Discharge, Fifth Circuit Says

The appeals court barred the holder of a personal guarantee from launching a collateral attack on a confirmed chapter 11 plan.

5th Circuit