May 27, 2020

Supreme Court Ducks Equitable Mootness and Third-Party Releases

The case from the Third Circuit was not a good vehicle for granting certiorari on either issue, even though there is a circuit split on nonconsensual, third-party releases.

Supreme Court

May 27, 2020

Farmers in Chapter 12 Don’t Qualify for PPP ‘Loans,’ Milwaukee Judge Rules

A PPP ‘loan’ under the Cares Act isn’t a ‘grant,’ thus the government isn’t barred from discriminating against a bankrupt under Section 525(a).

7th Circuit, Wisconsin, Wisconsin Eastern District

May 26, 2020

Houston Judge Rejects the Jay Alix Protocol, Allows Retention Under Section 327(a)

Bankruptcy Judge David Jones finds the Jay Alix Protocol to be ‘completely unnecessary.’

5th Circuit, Texas, Texas Southern District

May 20, 2020

Tenth Circuit Strictly Reads Section 326(a) Regarding a Trustee’s Right to Compensation

Successful liquidation doesn’t automatically mean maximum compensation.

10th Circuit

May 19, 2020

Is Section 363(m) Jurisdictional or Only a Limit on the Power of an Appellate Court?

The belief that Section 363(m) is jurisdictional allowed a buyer to profit from taking a misleading position in bankruptcy court.

2nd Circuit, New York, New York Southern District

May 14, 2020

Another Judge Allows Switching to the SBRA When a Pending Chapter 11 Is About to Fail

Judge Jacobvitz allows the debtor to proceed under the SBRA more than a year after the initial chapter 11 filing

10th Circuit, New Mexico

May 14, 2020

‘Snapshot’ Rule for Valuation Doesn’t Apply to Compelling Abandonment, Circuit Says

Equity in property at the time of a hearing, not at filing, decides whether the court should compel abandonment, Sixth Circuit says.

6th Circuit

May 13, 2020

Statutory Basis Explained for Deferring Rent in Response to the Coronavirus

Section 365(d)(3) doesn’t contain a remedy for failure to pay rent on time, Judge Huennekens says.

4th Circuit, Virginia, Virginia Eastern District

May 12, 2020

Confirmation Barred Claims Against a Coal Producer for Causing Global Warming

Global warming claims were discharged even though the chapter 11 plan did not discharge claims under environmental laws.

8th Circuit

May 08, 2020

Tenth Circuit Applies Equitable Mootness to Appeals from Liquidating Chapter 11 Plans

Circuit says that some factors are more important than others when applying equitable mootness to appeals from liquidating plans.

10th Circuit