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ABI Journal

December 30, 2021

May Accountants Limit Liability for Professional Malpractice? Stay Tuned

New Jersey judge says that professionals may not be able to limit liability when malpractice is more than mere negligence.

3rd Circuit, New Jersey

July 14, 2021

Being an ‘Officer’ Disqualifies Someone from a KERP, New York District Judge Says

Officers are presumptively disqualified from KERPs, “absent a strong showing that they do not perform any significant role in management,” a district judge in New York says.

2nd Circuit, New York, New York Southern District

July 22, 2020

Second Circuit Broadly Caps Wage Claims Accelerated Before Bankruptcy

Second Circuit prevents ‘artful drafting’ from evading the cap on golden parachutes under Section 502(b)(7).

2nd Circuit

June 30, 2020

Saving a Failing Company Doesn’t Entail ‘Defalcation’ Regarding Union Obligations

A properly drafted union contract still failed to leave a company officer with a nondischargeable debt for failing to make employer contributions to a union welfare fund.

2nd Circuit, New York, New York Eastern District

June 02, 2020

Liquidating in Chapter 11 Won’t Stop an EEOC Suit for Employment Discrimination

Magistrate judge decided that the regulatory power exception to the automatic stay allows the EEOC to proceed, but he stayed the suit by the former employee seeking damages.

11th Circuit, Georgia, Georgia Northern District

May 26, 2020

Houston Judge Rejects the Jay Alix Protocol, Allows Retention Under Section 327(a)

Bankruptcy Judge David Jones finds the Jay Alix Protocol to be ‘completely unnecessary.’

5th Circuit, Texas, Texas Southern District

April 07, 2020

Barton Doctrine Didn’t Protect a Special Master from a Preference Suit

Judge Brown of Denver elucidates a third exception to the Barton doctrine barring suits against court-appointed officials.

10th Circuit, Colorado

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 02, 2019

First Circuit Explains How to Avoid Liability for an Underfunded Pension Plan

To avoid liability for an underfunded pension plan, the First Circuit describes a structure for investors to employ when buying a sick company

1st Circuit

October 31, 2019

Circuit Split Narrows on the Automatic Stay and Turnover of Repossessed Cars

Third Circuit also holds that turnover in Section 542(a) is not automatic. The debtor must mount an adversary proceeding to obtain a turnover of property.

3rd Circuit