March 23, 2021

Third Circuit Rejects Triangular Setoffs and Adopts Rationale by Judge Shannon

A triangular setoff valid under state law does not satisfy the mutuality requirement in Section 553(a).

3rd Circuit

March 18, 2021

Third Circuit Resurrects an ‘Admin’ Claim When the Stalking Horse Had No Breakup Fee

The Third Circuit found loopholes in the purchase agreement permitting the buyer to assert an administrative claim, even though the breakup fee was disallowed.

3rd Circuit

March 16, 2021

Solicitor General Says the Second Circuit ‘Erred’ in Tribune Safe Harbor Decision

Despite several errors about the safe harbor, the government recommends that the Supreme Court deny certiorari in Tribune.

Supreme Court

March 15, 2021

Individual Chapter 11 Debtors Have Standing to Raise Thirteenth Amendment Claims

The Eleventh Circuit was ‘skeptical’ about a violation of the anti-slavery amendment resulting from the appointment of a chapter 11 trustee to oust an individual chapter 11 debtor in possession.

11th Circuit

March 12, 2021

Trustees Don’t Need a Pecuniary Interest to Have Standing to Appeal, Fifth Circuit Says

Fee allowances aren’t made with the benefit of hindsight, the Fifth Circuit says.

5th Circuit

March 11, 2021

Reverse Contingencies Are Permissible in Bankruptcy Cases, Judge Olack Says

Compensation in a bankruptcy case can be based on savings to the estate, not only on cash recoveries by the estate.

5th Circuit, Mississippi, Mississippi Southern District

March 08, 2021

Split Grows on Whether a Subchapter V Debtor Must Be ‘Currently’ Engaged in Business

The owner of defunct businesses was held ineligible to be a small business debtor because he was no longer the owner of an operating business. Being a non-owner executive of an operating business didn’t qualify him.

5th Circuit, Texas, Texas Northern District

March 03, 2021

Second Circuit Ducks a Critical Vendor Appeal

An appeal from a critical vendor order was dismissed as equitably moot.

2nd Circuit

March 02, 2021

Landlord Socked $606,000 for Opposing Lease Assumption

Fee-shifting clause in the lease entitled the debtor to recover $606,000 in attorneys’ fees from the landlord for opposing lease assumption.

9th Circuit, California, California Central District

February 25, 2021

To Invoke Equitable or Statutory Mootness, the Record Must Be Clear that a Sale Closed

Unsubstantiated statements that a sale closed didn’t persuade a district judge in Dallas to invoke equitable or statutory mootness.

5th Circuit, Texas, Texas Northern District