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ABI Journal

December 15, 2020

The Mailbox Presumption Won’t Deem a Claim to Have Been Timely Filed

Courts are split on the extent to which an affidavit of timely mailing will suffice to prove that a claim was filed.

4th Circuit, North Carolina, North Carolina Middle District

December 11, 2020

Courts Are Now Split on Whether a Subchapter V Debtor Must Be ‘Currently’ Engaged in Business

Debts acquired from running a business do not qualify someone for subchapter V of chapter 11 if the business has terminated and the assets are gone, according to Judge Cynthia Norton.

8th Circuit, Missouri, Missouri Western District

December 10, 2020

Subchapter V Trustees Are Entitled to ‘Reasonable’ Compensation Without a “Cap”

Section 326(b) could have been (incorrectly) read to mean that non-standing subchapter V trustees are not entitled to compensation.

9th Circuit, Idaho

December 09, 2020

Courts Are Split on the Interest Rate for Unsecured Creditors of a Solvent Debtor

California judge disagrees with a Texas judge and rules that creditors of a solvent debtor are not entitled to the higher state judgment rate or the higher contract rate.

9th Circuit, California, California Southern District

December 08, 2020

Arizona District Judge: No Final Orders in Preference Suits Without a Claim or Consent

Expanding on dicta in Bellingham, the district court in Arizona finds no power to enter a final order in a preference suit against a defendant who did not consent to a final order in bankruptcy court.

9th Circuit, Arizona

December 07, 2020

‘Doing Everything Possible’ Can Result in Cutting a Fee Request, Judge Thad Collins Says

An oversecured lender may not be entitled to a fee allowance from the estate that a private client might be willing to pay.

8th Circuit, Iowa, Iowa Northern District

December 04, 2020

Court of Claims Upholds Fee Increase for U.S. Trustee System

The Fifth Circuit and now the Court of Claims found no constitutional flaw in the 2017 increase in fees paid by chapter 11 debtors to the U.S. Trustee system.

5th Circuit

December 02, 2020

New York’s High Court Splits on Federal Preemption of Tortious Interference Claims

New York Court of Appeals decision opens the door to state court suits against third parties who cause debtors to breach contracts with lenders.

2nd Circuit, New York

December 01, 2020

A Zombie Was Sufficiently Alive to Make Affiliates Liable for ERISA Underfunding

The Eleventh Circuit makes federal common law to nail companies for a deceased affiliate’s pension underfunding.

11th Circuit

November 27, 2020

The Debtor in Taggart v. Lorenzen Loses Again after Remand by the Supreme Court

The Ninth Circuit rules that Taggart raised a ‘significantly high hurdle’ before holding a creditor in contempt of the discharge injunction.

9th Circuit