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ABI Journal

October 26, 2021

Bar Date Notice by Email Is Insufficient, Delaware’s Judge Goldblatt Says

Notice by email may satisfy due process but doesn’t comply with notice by ‘mail’ under Bankruptcy Rule 2002.

3rd Circuit, Delaware

October 22, 2021

Fourth Circuit Would Discharge CERCLA Claims if Pollution Occurred Before Filing

Maryland district judge predicts that the Fourth Circuit would adopt a debtor-friendly rule more broadly discharging environmental claims when the acts occurred before chapter 11.

4th Circuit

October 20, 2021

Capped Landlord Claim Can Also Be Nondischargeable, Eighth Circuit Says

Retired Judge Kressel wrote the opinion in 2000 relied on by the Eighth Circuit.

8th Circuit

October 18, 2021

Lender Was Lucky to Recover Anything on an Unauthorized $5.2 Million Loan

The bankruptcy court was accorded wide discretion in deciding how to treat a $5.2 million loan that was neither disclosed to nor approved by the bankruptcy court.

11th Circuit, Georgia, Georgia Northern District

October 15, 2021

Supreme Court Update: Equitable Mootness Not Ready for Prime Time

An arbitration case to be argued in November may inform bankruptcy courts whether they must enforce arbitration agreements.

Supreme Court

October 14, 2021

Refusing to Release an Attachment After Filing Is No Stay Violation Following Fulton

Pennsylvania’s Judge Conway hints that failure to stop proceedings after bankruptcy can be an automatic stay violation, even after Fulton.

3rd Circuit, Pennsylvania, Pennsylvania Middle District

October 08, 2021

Supreme Court Likely to Tackle 2018 U.S. Trustee Fee Increase

The circuits are now split 2/2 on whether the 2018 increase in U.S. Trustee fees violated the Bankruptcy Clause because the increase didn’t apply immediately in bankruptcy administrator districts.

10th Circuit

October 05, 2021

Surety Bonds Aren’t Executory Contract and Can’t Be Assumed, District Judge Says

An irrevocable surety bond isn’t executory because it gives the bonding company no further obligations to the debtor.

5th Circuit, Louisiana

October 04, 2021

On an ‘Involuntary,’ Denial of Summary Judgment Doesn’t Mean the Claim Is Disputed

The Iqbal and Twombly standards don’t apply to involuntary petitioners who are required to use Official Form 105.

5th Circuit, Texas, Texas Southern District

October 01, 2021

Third Circuit Makes Strict Rules Before Subrogation Rights Kick In

There can be no question about whether the beneficiary of a surety bond has been ‘paid in full’ before the surety has subrogation rights.

3rd Circuit