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ABI Journal

May 18, 2020

Setoff Rights of the IRS Prevail over a Debtor’s Attempt to Exempt a Tax Refund

Fourth Circuit answered a question of first impression where the lower courts disagreed.

4th Circuit

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

March 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, Delaware

March 25, 2020

Supreme Court Explains Sovereign Immunity in Bankruptcy Cases

The Supreme Court uses a copyright case to explain why the bankruptcy exception to states’ sovereign immunity is unique under the Constitution.

Supreme Court

March 10, 2020

Fifth Circuit Rules that the Penalty under the ACA Isn’t a Priority Tax Claim

The exaction for failure to purchase health insurance isn’t an excise tax ‘on a transaction’ under Section 507(a)(8)(E)(i).

5th Circuit

March 09, 2020

To Avoid U.S. Trustee Fees, Court Liberally Allows Closing a Case After Confirmation

Pending adversary proceedings don’t preclude a finding that the chapter 11 case has been ‘fully administered,’ thus allowing entry of a final decree and cutting off further fees owing to the U.S. Trustee Program.

2nd Circuit, Connecticut

March 05, 2020

Fifth Circuit Opinion Shows How Not to Represent a Creditor at Confirmation

Sovereign immunity won’t prevent the bankruptcy court from extinguishing a state’s easement over a debtor’s property.

5th Circuit

February 25, 2020

Supreme Court Uses a Bankruptcy Case to Limit the Use of Federal Common Law

High court rules that federal courts may make federal common law only to protect ‘uniquely’ federal interests.

Supreme Court

January 23, 2020

Stays Are Automatic from Denial of a Motion to Dismiss for Sovereign Immunity

Courts are divided on whether the district court loses jurisdiction to stay proceedings in bankruptcy court after the filing of a notice of appeal.

3rd Circuit, Delaware

January 09, 2020

Courts Interpret Brunner Too Harshly, Bankruptcy Judge Cecelia Morris Says

A debtor with a law degree but only $37,500 in gross annual income was permitted to discharge more than $220,000 in student loans.

2nd Circuit, New York, New York Southern District