February 22, 2019

Supreme Court Hears Oral Argument on Rejection of Trademark Licenses

Thirty-five years later, the Supreme Court might reverse Lubrizol.

Supreme Court

February 21, 2019

Solvent Debtor Required to Pay Default Interest 9% Above Prime

Equity didn’t favor chopping down the default rate when the debtor emerged from bankruptcy with substantial equity and all creditors were paid in full.

2nd Circuit, New York, New York Southern District

February 20, 2019

Huge Liquidated Damages Held Unenforceable in an Aircraft Lease

Although the parties were sophisticated, New York judge finds that a liquidated damages clause was actually an unenforceable penalty.

2nd Circuit, New York, New York Southern District

February 19, 2019

Barton Also Protects Asbestos Trusts, Delaware Judge Says

If a suit filed in violation of Barton ends up in bankruptcy court, must the judge still dismiss? The courts are split.

3rd Circuit, Delaware

February 15, 2019

Another Court Strikes Down Higher U.S. Trustee Fees in Some Cases

A crisis befalls smaller companies that can’t afford the huge increase in U.S. Trustee fees.

5th Circuit, Texas, Texas Western District

Bankruptcy Judge OKs Four Years of Jailing for Civil Contempt

An appellate court will decide whether four years of jailing means that civil incarceration has become futile.

9th Circuit, California, California Central District

February 13, 2019

An Objection to Third-Party Releases Must Be Raised in Bankruptcy Court

A non-objecting creditor is bound by a third-party release even if the release may have been improper.

5th Circuit, Texas, Texas Southern District

February 12, 2019

Another Circuit Allows an Unsecured Claim for Contractual Attorneys’ Fees

The circuits agree, but the lower courts disagree, on the allowance of post-petition attorneys’ fees based on contract.

4th Circuit

February 07, 2019

Fifth Circuit Declines to Expand Equitable Mootness Beyond Plan Confirmation

An appeal from an integrated sale and settlement can be dismissed under Section 363(m), the Fifth Circuit says.

5th Circuit

February 06, 2019

Fifth Circuit Joins Sister Circuits in Bestowing Qualified Immunity on Trustees

Qualified immunity kicks in when a trustee’s actions don’t qualify for absolute immunity.

5th Circuit