Allowed Claim Can’t Be Used Offensively, Second Circuit Says
Second Circuit barred offensive use of claim preclusion based on ‘fairness’ but hinted that offensive claim preclusion might never be permitted.
11th Circuit Upholds Its Rule that There’s No Equitable Tolling for Dischargeability Complaints
The opinion reads like an invitation for the Eleventh Circuit to sit en banc and reconsider circuit authority holding that a claims-processing deadline is not subject to equitable tolling.
Puerto Rico’s Debt-Adjustment Proceedings Weren’t Unconstitutional ‘Takings’
The Federal Circuit upheld the claims court’s decision that taking away bondholders’ collateral wasn’t an unconstitutional taking.
No Jurisdiction over Post-Confirmation Breach of a Pre-Confirmation Contract
Not much caselaw on the bankruptcy court’s jurisdiction over breach of a contract made during a chapter 11 case when the breach occurred after confirmation.
Liquidating Trustee Ousted for an Undisclosed Litigation Funding Agreement
The pricey litigation funding agreement had not been disclosed to creditors before confirmation.
Eleventh Circuit: Chapter 13 Debtor Keeps Settlement of a Personal Injury Claim
What’s a settlement of a personal injury claim? Is it income earmarked for creditors in chapter 13?
Bestwall Concurrence Believes in ‘Liberalization’ of Bankruptcy Powers
The concurring opinion in Bestwall could be read to suggest that Circuit Judge G. Steven Agee might have an open mind if a confirmed plan comes to the Fourth Circuit on appeal.
Bestwall Dissenting Opinion Reads Like Dismissal of LTL Mgmt for a Bad Faith Filing
The Bestwall dissenter understands the Bankruptcy Clause as having the 18th century definition of ‘bankruptcy,’ thus requiring insolvency or inability to pay debts.
Fourth Circuit Rules on Jurisdiction, not ‘Financial Distress’ for a Chapter 11 Debtor
Fourth Circuit majority and dissenting opinions might be read to suggest that Bestwall could have tough sledding on an appeal from confirmation since the debtor is solvent.
Trial-Ready Case Remanded to State Court, Not Transferred to Bankruptcy Court
District judge was reluctant to have the bankruptcy court decide whether a suit removed to federal court should be remanded to the state trial court.