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 CircuitMarch 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, DelawareMarch 27, 2020
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 CircuitMarch 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 CircuitMarch 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 CircuitMarch 24, 2020
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 DistrictMarch 23, 2020
Another Case Shows the Need to Provide Remedies for Discharge Violations
Discharge was violated, but sanctions are likely out of reach.
7th CircuitMarch 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, NevadaMarch 18, 2020
Ninth Circuit Equivocates on ‘Collection Injunctions’ in Individual Chapter 11s
Dissenter in the Ninth Circuit says that utilizing provisions in the Bankruptcy Code is not bad faith barring confirmation.
9th CircuitMarch 17, 2020
Judge Finds a Workaround to Avoid Using Nunc Pro Tunc Retentions
Judge Grossman finds a way to grant allowances of compensation for services performed before the entry of a retention order.
2nd Circuit, New York, New York Eastern District