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ABI Journal

February 24, 2021

Bankruptcy Settlement Didn’t Discharge All Environmental Claims, New York Judge Says

Due process considerations persuaded District Judge Oetken to conclude that a creditor’s claims, unknown at the time, were not barred by a settlement.

2nd Circuit, New York, New York Southern District

February 23, 2021

Espinosa Doesn’t Forgive All Procedural Defects in Confirmation, Judge Ludwig Says

To sell free and clear, someone with an interest in the property must receive the notice required for service of a summons and complaint. Actual notice doesn’t suffice.

7th Circuit, Wisconsin, Wisconsin Eastern District

February 18, 2021

Medicaid Fraud Suit in State Court Isn’t Subject to the Automatic Stay

Even though the debtor was no longer in business, a Medicaid fraud suit was not subject to the automatic stay and thus served as a deterrent to others.

5th Circuit, Texas, Texas Southern District

February 15, 2021

Sixth Circuit Permits Nondebtor Family Members to Continue the Family Business

Circuit Judge Sutton shied away from making a wife liable for her husband’s debts, even though the wife carried on the husband’s farming business.

6th Circuit

February 12, 2021

Additional Committee for Commercial Creditors Appointed in Archdiocese Bankruptcy

Judge Grabill would have given commercial creditors either their own committee or special counsel given the different interests of sexual abuse claimants.

5th Circuit, Louisiana, Louisiana Eastern District

February 11, 2021

Tempnology Didn’t Undercut the Validity of Equitable Mootness, First Circuit Says

Confirmation appeals in two big cases are dismissed on the same day for equitable mootness.

1st Circuit

February 10, 2021

Court Records Destroyed, a Finding of Proper Notice Presumes Notice by Publication

The finding of proper notice in a confirmation order satisfies the debtor’s burden of proving notice by publication to creditors with future claims, even in the absence of a trust for future creditors, Houston judge says.

5th Circuit, Texas, Texas Southern District

February 09, 2021

BAP Adheres to ‘Person Aggrieved’ Despite Dicta from the Sixth Circuit

The Supreme Court and the Sixth Circuit both questioned the continuing validity of doctrines of prudential standing, such as ‘person aggrieved.’

6th Circuit

February 08, 2021

Texas Legislature Didn’t Succeed in Giving Lien Priority to Oil and Gas Producers

Fifth Circuit says that Oklahoma protected that state’s oil and gas producers while Texas didn’t.

5th Circuit

February 04, 2021

‘Plain Language’ Puts Small-Dollar Avoidance Suits in the Debtor’s Home Court

Congress may have made a mistake in drafting, but the plain language of 28 U.S.C. § 1409(b) must control, Judge Grossman says.

2nd Circuit, New York, New York Eastern District