Supreme Court Holds: § 106(a) Doesn’t Waive Sovereign Immunity for § 544(b) Suits
In an 8-1 opinion, the Supreme Court holds that the waiver of sovereign immunity under Section 106(a) does not extend to suits brought by a trustee under state law standing in the shoes of an actual creditor.
Bankruptcy Judge Upheld: No Arbitration on Claims for Violating the Automatic Stay
Bankruptcy Judge Paul Black was affirmed in district court for holding that arbitration of claims for violating the automatic stay would conflict with the centrality of administration in bankruptcy cases.
Equity Survives in the Ninth Circuit to Prevent Recoupment of Disability Overpayments
Reversing the BAP, the Ninth Circuit held that equitable considerations may stop the government from recovering disability overpayments, when the doctrine of recoupment otherwise would have allowed recovery despite the debtor’s chapter 7 discharge.
Another Fifth Circuit Humdinger: This Time, Limiting Gatekeeping
Picking up where Serta Simmons left off, the Fifth Circuit nixes another creative chapter 11 plan.
Courts Divided on Broad or Narrow Grounds for Transferring Venue Under Section 1412
Some courts don’t transfer venue under 28 U.S.C. § 1412 if the claims are only ‘related to’ the bankruptcy and don’t arise in the bankruptcy case or arise under the Bankruptcy Code.
Bankruptcy Courts Disagree on Paying a ‘7’ Trustee Who Made No Distributions
Courts are split on whether chapter 7 trustees can be paid on another theory when the trustee had made no distributions to creditors under Section 326(a).
Arbitration in Bankruptcy Isn’t All or Nothing, Judge David Cleary Says
Chicago’s Judge David Cleary called for post-confirmation arbitration of claims between the debtor and a creditor, but no arbitration for the creditor’s defenses, raising questions of bankruptcy law.
Class Actions: The Answer for Stay Violations with Small Damages for Each Debtor
A class action in Chicago will decide whether bankruptcy judges have the tools to rectify a single creditor’s violation of the rights of similarly situated debtors.
Sex Abuse Victims to Have a Private Conference with the Judge and the Catholic Bishop
Bankruptcy Judge Christopher Klein said it was ‘nonsense’ to argue that ‘a Bankruptcy Court lacks authority to permit survivor statements to be made to the Court and to the Bishop.’
Chapter 13 Debtors Can’t Sell Co-Owned Property Under Section 363(h)
On a question where the courts are split, Bankruptcy Judge Pamela McAfee sides with the majority and holds that a chapter 13 debtor can’t sell co-owned property.