June 17, 2020
Debtors and the SBA Fight to a Draw Last Week on PPP ‘Loans’
Courts still have no consensus about debtors’ right to receive PPP ‘loans’ under the Cares Act.
11th Circuit, Florida, Florida Northern DistrictJune 16, 2020
Subchapter V Trustee Barred from Routine Retention of Counsel
Bankruptcy Judge David Warren warns small business trustees that they won’t be compensated if they are “overzealous” or undertake “unnecessary or duplicative services.”
4th Circuit, North Carolina, North Carolina Eastern DistrictJune 11, 2020
Force Majeure Clause Cut an Illinois Debtor’s Rent by 75%
Chicago judge cut rent by 75% after governor prohibited on-premises dining in the debtor’s restaurant.
7th Circuit, Illinois, Illinois Northern DistrictJune 10, 2020
Last Week, the Government Went 2 for 3 in Defeating Debtor’s Demands for PPP Loans
Courts are divided on whether PPP litigation is ‘core’ or not.
1st Circuit, MaineJune 09, 2020
Denial of a Claim Doesn’t Divest the Bankruptcy Court of Final Adjudicatory Power
More important law from Madoff: Filing a claim waives the right to a jury trial in district court even if the claim is denied or withdrawn, district judge rules.
2nd Circuit, New York, New York Southern DistrictJune 04, 2020
Ninth Circuit Narrowly Reads Section 506(d) on Voiding Liens After Claim Disallowance
A claim must be disallowed based on the invalidity of the debt before the associated lien can be voided under Section 506(d), the Ninth Circuit ruled in upholding the BAP.
9th CircuitJune 02, 2020
Liquidating in Chapter 11 Won’t Stop an EEOC Suit for Employment Discrimination
Magistrate judge decided that the regulatory power exception to the automatic stay allows the EEOC to proceed, but he stayed the suit by the former employee seeking damages.
11th Circuit, Georgia, Georgia Northern DistrictJune 01, 2020
District Judge Rejects the Majority’s ‘Gotcha’ Approach to Automatic Abandonment
Sufficiently listing an asset anywhere in the schedules and SOFA will result in abandonment if the asset was not administered by the trustee, Utah district judge holds.
10th Circuit, UtahMay 29, 2020
Postpetition Default on a Mortgage Is a Prepetition Debt for Setoff Purposes
The obligation on a mortgage is incurred when the mortgage is granted, even though the payment default may occur after filing, Judge Thuma says.
10th Circuit, New MexicoMay 28, 2020
BAP Didn’t See Barnhill as Prescribing the Date of Transfer from a Retirement Account
The First Circuit BAP evidently believes that a transfer occurred, even though an ordinary check wasn’t cashed.
1st Circuit