May 14, 2024
Federal Government Doesn’t Have Sovereign Immunity to Avoid Contempt Sanctions
Bankruptcy Judge Scott Clarkson nailed the government with $38,000 in sanctions for a ‘willful’ violation of a discovery order shown by ‘clear and convincing evidence.’
9th Circuit, California, California Central DistrictApril 24, 2024
Fourth Circuit Says Entireties Property Is Not Exempt from Tax Debt
The lack of perfection of a federal tax lien did not mean that the entireties interest was exempt under Section 522(b)(3).
4th CircuitApril 03, 2024
ERISA Claims Resolved in Bankruptcy Court, Not Through Arbitration
With two federal statutes in conflict, Delaware’s Judge Goldblatt found a rebuttable presumption in favor of enforcing arbitration.
3rd Circuit, DelawareDecember 27, 2023
No Condemnation When Government Takes Over Property to Prevent Public Injury
No reverse condemnation occurred when the state took over a debtor’s property to prevent an imminent threat to public health.
3rd Circuit, DelawareDecember 05, 2023
Supreme Court Seems Dubious About Purdue’s Nonconsensual, Nondebtor Releases
At oral argument, the justices were focused on whether the word “appropriate” in Section 1123(b)(6) allows chapter 11 plans to include nonconsensual, nondebtor third-party releases.
Supreme CourtDecember 01, 2023
Sub V Plan with Nondebtor Release Approved over Opposition from the Affected Class
A decision from a New York bankruptcy court makes nondebtor releases easier to obtain in Subchapter V than in large, mass tort chapter 11 cases.
2nd Circuit, New York, New York Southern DistrictNovember 10, 2023
Georgia Judge Approves a Chapter 11 Plan with Nonconsensual, Nondebtor Releases
Although the Supreme Court will soon rule on the permissibility of nonconsensual releases, Bankruptcy Judge Sigler approved a plan with nondebtor releases under existing Eleventh Circuit precedent.
11th Circuit, Georgia, Georgia Northern DistrictOctober 13, 2023
Debtor’s Subchapter S Status Is Estate Property that an Owner Can’t Terminate
Bankruptcy Judge Russin declines to follow the Third Circuit and adopts the conclusion of bankruptcy courts holding that Sub S status is estate property.
11th Circuit, Florida, Florida Southern DistrictSeptember 29, 2023
Foreign Sovereign Immunity Bars the Madoff Trustee from Recovering $20 Million
A district judge in New York reversed the bankruptcy court, which had held that a Kuwaiti public pension fund was not entitled to sovereign immunity for having engaged in commercial activity.
2nd Circuit, New York, New York Southern DistrictSeptember 28, 2023
An FTC Suit Under the Sherman and FTC Acts Wasn’t Subject to the Automatic Stay
The ‘police and regulatory’ exception to the automatic stay applies when the FTC is only seeking injunctive and equitable relief, the D.C. Circuit says.
D.C. Circuit, District of Columbia