November 03, 2020

Sixth Circuit Creates a Split: The 14-Day Deadline for an Appeal Is Not Jurisdictional

Impliedly overruling the law in five circuits, the Supreme Court changed the rules for deciding when a deadline is jurisdictional, the Sixth Circuit says.

6th Circuit

November 02, 2020

Debt of an Ineligible Affiliate Is Included in the $7.5 Million Cap for Subchapter V

Although ineligible on its own to be a debtor under subchapter V of chapter 11, the debt of the ineligible company is nonetheless aggregated with the debts of its affiliates to determine whether affiliates are eligible for subchapter V.

5th Circuit, Mississippi, Mississippi Northern District

October 30, 2020

Judge Isgur Sides with the Third Circuit and Allows Makewhole Premiums

Creditors are entitled to ‘default interest’ when the debtor is solvent.

5th Circuit, Texas, Texas Southern District

October 27, 2020

Texas Mineral Liens May Be Modified in a Subchapter V Cramdown Plan

A cramdown plan can reduce the collateral coverage for secured creditors.

5th Circuit, Texas, Texas Southern District

October 23, 2020

Detroit Judge Criticizes the Second Circuit’s Tribune Decision on the Safe Harbor

The Supreme Court is considering whether to review another case defining the safe harbor in Section 546(e).

6th Circuit, Michigan, Michigan Eastern District

October 22, 2020

On a Circuit Split, Sovereign Immunity Wasn’t Waived for Indian Tribes, Judge Says

Section 106 wasn’t sufficiently explicit to waive sovereign immunity for Indian tribes, Judge Frank Bailey said in siding with the Sixth Circuit and differing with the Ninth Circuit.

1st Circuit, Massachusetts

October 21, 2020

‘Disposable Income’ Must Be Carefully Defined to Preserve the Debtor’s Discharge

Judge Christopher Klein parses the burdens of proof on conversion, dismissal and right to a discharge for an individual in chapter 11.

9th Circuit, California, California Eastern District

October 20, 2020

Exotic Aircraft Finance Defeats a Trustee on Recharacterization

Electing English law upheld, even though no one had any connection with the U.K.

9th Circuit, California, California Central District

October 19, 2020

California Judge Explains Why Acevedo Doesn’t Bar Retroactive Orders

Retroactive and nunc pro tunc orders aren’t the same thing, Judge Jaime says. Orders may be retroactive when the power is implied by statute.

9th Circuit, California, California Eastern District

October 16, 2020

Bankruptcy Judge Won’t Follow BAP Authority on Derivative Standing for Creditors

Bankruptcy Judge Thuma admonishes the parties to settle and not waste money on litigation that should go to sexual abuse victims.

10th Circuit, New Mexico