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ABI Journal

October 13, 2020

Supreme Court Hears Argument in Fulton: Is Inaction an Automatic Stay Violation?

Supreme Court to resolve a circuit split by deciding whether a change in the status quo must occur before the automatic stay is violated.

Supreme Court

October 07, 2020

‘Fair Ground of Doubt’ Under Taggart Isn’t Shown by Intending to Overturn Precedent

The contemnor shoulders the burden of showing ‘uncertainty’ under the Taggart standard for contempt, Judge Barnes says.

10th Circuit, Colorado

October 06, 2020

First Circuit Won’t Allow a Lien to Be Waived by Implication

Foreclosing on cash doesn’t moot an appeal from the order modifying the automatic stay as to cash.

1st Circuit

September 29, 2020

Surety Bonds Aren’t Executory Contracts and Can’t Be Assumed Even if They Are

Insurance companies must nail down the treatment of performance bonds before plan confirmation.

5th Circuit, Louisiana

September 28, 2020

Second Circuit Upholds the Madoff Trustee’s Calculation of Fraudulent Transfer Claims

Fictitious profits in account statements don’t represent ‘value’ and give rise to a defense for receipt of a fraudulent transfer with ‘actual intent,’ the Second Circuit rules.

2nd Circuit

September 23, 2020

A Liquidating Plan Doesn’t Automatically Pass the Best Interests Test, BAP Says

Findings of fact to show satisfaction of the best interests test ordinarily should be numerical comparisons, Ninth Circuit BAP Says

9th Circuit

September 22, 2020

‘No Harm, No Foul’ Doesn’t Entitle a Debtor to a Discharge, BAP Says

Advice-of-counsel defense doesn’t work when intent is clearly fraudulent.

10th Circuit

September 21, 2020

Michigan Judge Prefers Dismissal if Conversion Won’t Benefit Unsecured Creditors

The parties judged the chapter 11 case a success, even though unsecured creditors got zilch.

6th Circuit, Michigan, Michigan Western District

September 18, 2020

Ninth Circuit Reiterates Its Idiosyncratic Recoupment Standard

Ninth Circuit abjures bright lines in favor of a flexible approach to defining recoupment.

9th Circuit

September 16, 2020

A Credit Bid Doesn’t Cap the Value of a Secured Lender’s Collateral

Delaware district judge holds that the final bid at auction, not the lender’s last credit bid, fixes the value of the lender’s collateral.

3rd Circuit, Delaware