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ABI Journal

December 30, 2019

Third Circuit Issues an Important Decision on Liquidation of Repo ‘Credit Enhancements’

Appeals court upholds finding that the mortgage securities market in 2007 was declining, not dysfunctional.

3rd Circuit

December 26, 2019

Divided Fifth Circuit Again Permits Third-Party Injunctions in Stanford Receivership

Fifth Circuit should decide en banc whether nondebtor releases are permissible in receiverships but not in bankruptcy cases.

5th Circuit

December 23, 2019

Third Circuit Finds Constitutional Power to Grant Releases in Confirmation Orders

Third Circuit emphasizes the limitation of nonconsensual, third-party releases to ‘exceptional’ cases.

3rd Circuit

December 20, 2019

Treasury Offset Program Can’t Be Used After Bankruptcy, District Judge Says

Now on the district court bench, then-Bankruptcy Judge Frank Volk was upheld in a tricky case involving the government’s right of setoff.

4th Circuit, West Virginia, West Virginia Southern District

December 19, 2019

Supreme Court Grants ‘Cert’ to Decide Whether Inaction Violates the Automatic Stay

Virginia case highlights the damage that will be done to debtor protections if affirmative action is required for a stay violation.

4th Circuit, Virginia, Virginia Eastern District

December 16, 2019

Sixth Circuit Gives Primacy to the Bankruptcy Court in Rejecting Power Contracts

Over a dissent, the Sixth Circuit holds that FERC may offer its opinion but may not bar a bankruptcy court from rejecting a power purchase agreement after considering the public interest.

6th Circuit

December 10, 2019

Opting Out Won’t Justify Imposing Third-Party Releases, Delaware Judge Says

Saying she is in the minority in her district, a new Delaware judge ruled that allowing creditors to opt out won’t permit a plan to impose nonconsensual, third-party releases.

3rd Circuit, Delaware

December 09, 2019

Mortgage Servicer Blew the Statute of Limitations, Judge Grossman Says

New York intermediate appellate courts are split on critical questions about the ‘start date’ for the statute of limitations on mortgage foreclosure.

2nd Circuit, New York, New York Eastern District

December 06, 2019

Seventh Circuit Limits Punitive Damages to Total Compensatory Damages of $582,000

Despite atrocious mortgage servicing, the circuit court cut a jury’s $3 million award of punitive damages to $582,000.

7th Circuit

December 05, 2019

The Supreme Court May Duck a Case Involving Federal Common Law vs. State Law

At oral argument, the justices seemed to recognize that Rodriguez v. FDIC does not raise the question of whether the lower courts relied on federal common law in deciding the ownership of a tax refund.

Supreme Court