Oil and Gas Royalties Never Become Estate Property in Colorado
The Third Circuit gave royalty owners a constructive trust over royalties improperly paid to secured creditors. The circuit court did not rule on remedy.
Whether a Fraudulent Transfer Claim Is ‘Direct’ or ‘Derivative’ Depends on Point of View
A D&O policy covering securities claims doesn’t provide coverage for a claim resulting from a fraudulent transfer, the Delaware Supreme Court rules.
Judge Harner Gives Contours to the Amorphous Notion of ‘New Value’
The ‘new value’ offered by old equity in a chapter 11 plan was insufficient because it was only a small fraction of claims and because the dividend to creditors was also small.
IRS Standard Deduction for Housing Can Be Taken Without Mortgage or Rent Expense
Official Form 122C-2 could be read to deprive a chapter 13 debtor of the IRS standard housing deduction when the statute permits the deduction.
Bankruptcy Code Overrides Contrary Delaware Corporate Law, Judge Lopez Says
Whether a creditor violated the automatic stay is not arbitrable in bankruptcy.
Earmarking Requires Dominion/Control and No Diminution of the Estate, Circuit Says
Invoking Supreme Court authority, the Tenth Circuit says that inferences from the evidence are reviewed for clear error just like findings of fact themselves.
General Objection to Entry of Final Orders Won’t Preserve a ‘Stern’ Objection, BAP Says
Acquiescence in an appeal to a BAP waives any right to de novo review by an Article III judge.
Substantially Equivalent Value Not Required to Defeat Equitable Disgorgement
The standard for defeating equitable disgorgement is lower than the proof required to fend off receipt of a fraudulent transfer.
Dismissing a Divorce Action Didn’t Result in an Unauthorized, Post-Petition Transfer
An inchoate interest in property created by filing a divorce action doesn’t survive dismissal of the divorce action, the Tenth Circuit BAP says.
Finality of a Contempt Order Drawn into Question in the Eleventh Circuit
Some authority from the Supreme Court suggests that a contempt order without imposition of attorneys’ fees would not be final in a bankruptcy case.