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April 06, 2020

Taggart Didn’t Let Corporate Employees Off the Hook for a Stay Violation
Tortious or fraudulent conduct needn’t be shown to hold a corporate employee liable for violating the automatic stay.
1st Circuit, Rhode Island

April 02, 2020

‘Oops’ and ‘Mea Culpa’ Won’t Make a Security Interest Attach, Judge Nugent Says
When it comes to attachment and perfection of a security interest, the devil is in the details.
10th Circuit, Kansas

March 31, 2020

Cramdown Must Not Put the Secured Creditor at Risk, Ninth Circuit BAP Says
Permanently reducing the claim by the appraised value without a backstop means the creditor isn’t receiving the ‘indubitable equivalent,’ BAP says.
9th Circuit

March 27, 2020

Delaware District Court Upholds Discharge of Environmental Fines in Chapter 11
Environmental fines are discharged in chapter 11 because they do not result from pecuniary loss.
3rd Circuit, Delaware
Release of a Subordinate Lien Held to Be ‘New Value’ for a Preference Defense
Eighth Circuit BAP crafts a preference rule protecting lenders in out-of-court workouts.
8th Circuit

March 26, 2020

In the Minority, 8th Circuit BAP Disregards Equitable Considerations in Allowing Default Interest
As long as the rate is legal under state law, considerations of equity will not allow a court to disallow default interest to an oversecured creditor under Section 506(b).
8th Circuit

March 24, 2020

Ninth Circuit BAP Applies Taggart to Violations of the Automatic Stay
Taggart left open the question of whether the ‘no objectively reasonable basis’ standard for discharge violations also applies to contempt of the automatic stay.
9th Circuit
Lawyer for Madoff Customer Slapped with $57,347 Discovery Sanction
Calling the Madoff trustee a liar and basing a discovery motion on facts known to be false resulted in sanctions under Rule 37(a)(5)(B).
2nd Circuit, New York, New York Eastern District

March 23, 2020

Another Case Shows the Need to Provide Remedies for Discharge Violations
Discharge was violated, but sanctions are likely out of reach.
7th Circuit

March 19, 2020

Mortgage Servicer Hit with $300,000 in Actual and Punitive Damages for Stay Violation
The creditor was guilty of an automatic stay violation, but Taggart insulated the creditor from liability for a discharge violation for continuation of the same conduct.
9th Circuit, Nevada