A Suit to Impose a Prepetition Policy Didn’t Violate the Automatic Stay, District Judge Says
Seeking attorneys’ fees from the debtor did not by itself make a postpetition lawsuit subject to the automatic stay.
Another Article III Judge Won’t Let Bankruptcy Stop Suits Against Nondebtors
The same day the Supreme Court decided to hear Purdue, a district judge on Long Island, N.Y., sent dozens of long-stayed sexual abuse cases back to state court where the debtor is not a named defendant.
Assets Purchased with Exempt Social Security Benefits Are Not Themselves Exempt
Two judges in Georgia say that personal property is not exempt even if the purchase was traceable to Social Security benefits.
Unlike Yesterday’s Story, a Two-Nondebtor Lawsuit Didn’t Have ‘Related To’ Jurisdiction
Unlike the case we reported on yesterday, there was no ‘related to’ jurisdiction because the outcome of a suit between two nondebtors wouldn’t have a direct effect on the bankrupt estate.
A Suit Between Two Nondebtors Might Have ‘Related To’ Jurisdiction
There could be ‘related to’ jurisdiction if a lawsuit between nondebtors might reduce claims against the bankrupt estate.
Till Doesn’t Require Starting with the Prime Rate, Eighth Circuit Says
The Treasury rate and prime rate are both proper starting points for pegging post-petition interest rates, but starting with Treasurys requires a larger risk premium.
Second Circuit Nixes Nationwide Class Actions for Discharge Violations
The Second Circuit split with the First Circuit, which had permitted nationwide class actions because the discharge injunction is statutory.
Default Rates Imposed Before Filing Must Be Cured to Assume a Loan Agreement
Monetary defaults, including default rates and fees, must be cured before a debtor may assume a loan agreement, New York’s Judge Bentley rules.
Fifth Circuit Approves Breakup Fees as ‘Admin’ Expenses or Costs of Sale
The Fifth Circuit avoided deciding whether approval of breakup fees is judged by the more lenient Section 363(b) or the more exacting standard for administrative expenses under Section 503(b).
J&J’s ‘Baby Powder’ Chapter 11 Case Dismissed a Second Time: No Financial Distress
Bound by the Third Circuit’s first LTL decision, the bankruptcy court found that LTL’s rejiggered second filing suffered from the same defect: no immediate financial distress.