April 03, 2019

Courts Divided on Venue for Small-Dollar Avoidance Actions

Judges Pappas and Teel permit avoidance actions for small amounts to be prosecuted in the debtors’ bankruptcy courts.

D.C. Circuit

March 29, 2019

Puerto Rico Bondholders Can’t Compel Payment During Bankruptcy, First Circuit Says

First Circuit interprets chapter 9 and PROMESA to permit but not compel payments to special revenue bondholders during debt arrangement proceedings.

1st Circuit

March 28, 2019

Circuit Upholds Dismissal of Suits to Restrict Puerto Rico’s Use of Tax Revenue

First Circuit bars use of declaratory judgments restricting Puerto Rico’s use of tax revenues.

1st Circuit

March 26, 2019

‘Deemed Allowed’ Claims Can Be Binding in Subsequent Litigation, Circuit Says

A failure to distinguish between res judicata and collateral estoppel turned out to be costly.

6th Circuit

March 21, 2019

Tardy Recordation of a Mortgage Not Salvaged by Relation-Back Arguments

A mortgage recorded more than 30 days after closing resulted in a transfer within the preference window.

11th Circuit, Georgia, Georgia Northern District

March 20, 2019

An Adroitly Drafted Makewhole Is Allowable in Bankruptcy, New York Judge Says

Judge Bernstein distinguishes a Second Circuit opinion to rule that a makewhole premium is allowable in bankruptcy.

2nd Circuit, New York, New York Southern District

March 19, 2019

The Rule 3001(f) Presumption of Claim Validity Doesn’t Include the Value of Collateral

California judge differs with the Third Circuit regarding the presumption of collateral value flowing from a lender’s proof of secured claim.

9th Circuit, California, California Eastern District

March 15, 2019

Reading Stern Narrowly, Delaware Judge to Issue Final Order in Fraudulent Transfer Suit

Judge Sontchi declines to rule that 28 U.S.C. § 157 is unconstitutional by denominating fraudulent transfer suits as ‘core’ proceedings.

3rd Circuit, Delaware

March 14, 2019

Adversary Proceeding to Enjoin FERC Remains in Bankruptcy Court

District judge won’t withdraw the reference when PG&E rejects power purchase agreements.

9th Circuit, California, California Northern District

March 13, 2019

Trustee Gloms Proceeds of an Unperfected Consignment, Not Just the Goods

Ninth Circuit interprets UCC § 9-319(a) to permit avoidance of consignor’s interest in proceeds of an unperfected consignment.

9th Circuit