The Supreme Court has postponed oral argument in City of Chicago v. Fulton until the new term to begin in October 2020.
In Fulton, the justices will resolve a split of circuits regarding the automatic stay under Section 362. The Second, Seventh, Eighth, Ninth and Eleventh Circuits impose an affirmative duty on creditors to turn over repossessed property after a filing.
The Third, Tenth and District of Columbia Circuits have held that the retention of property only maintains the status quo. For those three circuits, a stay violation requires an affirmative action. Simply holding property is not an affirmative act, in their view.
The Supreme Court is reviewing Fulton, a decision from the Seventh Circuit. Upheld in the Court of Appeals, the bankruptcy judges in Chicago have been requiring the City of Chicago to turn over cars automatically that had been impounded for unpaid parking fines. To read ABI’s discussion of the Seventh Circuit decision, click here.
Eugene Wedoff will argue on behalf of the debtor in the Supreme Court. Mr. Wedoff is a former bankruptcy judge in Chicago and a recent past president of ABI.
In March, the Supreme Court ceased holding oral arguments in the wake of the coronavirus. This month, they scheduled oral arguments by video hookup in several significant cases that need resolution before the end of the current turn. Fulton was not among them.
The Supreme Court has postponed oral argument in City of Chicago v. Fulton until the new term to begin in October 2020.
In Fulton, the justices will resolve a split of circuits regarding the automatic stay under Section 362. The Second, Seventh, Eighth, Ninth and Eleventh Circuits impose an affirmative duty on creditors to turn over repossessed property after a filing.
The Third, Tenth and District of Columbia Circuits have held that the retention of property only maintains the status quo. For those three circuits, a stay violation requires an affirmative action. Simply holding property is not an affirmative act, in their view.
The Supreme Court is reviewing Fulton, a decision from the Seventh Circuit. Upheld in the Court of Appeals, the bankruptcy judges in Chicago have been requiring the City of Chicago to turn over cars automatically that had been impounded for unpaid parking fines. To read ABI’s discussion of the Seventh Circuit decision, click here.
Eugene Wedoff will argue on behalf of the debtor in the Supreme Court. Mr. Wedoff is a former bankruptcy judge in Chicago and a recent past president of ABI.