2nd Circuit

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.

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A Receiver’s Claim Determination Wasn’t Barred by the Automatic Stay, Circuit Says

Agency principles prevented the principal from asserting excusable neglect.

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Debtor Granted Absolution for a 10-Day Delay in Serving a $40 Million Preference Suit

Although there wasn’t ‘good cause’ to excuse late service of a summons and complaint, the bankruptcy court salvaged a large preference by exercising discretion and granting a 10-day expansion of the 90-day deadline.

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No Stay Pending Appeal on Nondebtor Opt-Out Releases in a Chapter 11 Plan

The debtor agreed not to raise equitable mootness on an appeal only challenging nondebtor opt-out releases.

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U.S. Incorporated Subsidiaries ‘Likely’ Have Chapter 15 COMI in Canada, Not the U.S.

U.S. subsidiaries of a Canadian parent were under the control of a Canadian receiver, switching COMI from the U.S. to Canada.

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In Setting Aside a Tax-Lien Foreclosure, a Hypothetical Gave Standing to the Debtor

If state law prohibits assertion of the homestead exemption in tax foreclosure and the debtor can’t take federal exemptions, does the debtor lack standing to set aside a fraudulent transfer?

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New York Eastern District

Opting Out Is Consent for Nondebtor Chapter 11 Releases, New York Judge Says

Another bankruptcy court in New York holds that the ability to opt out of nondebtor releases represents consent after Purdue.

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After Purdue, Two Courts Still Permit Broad Nonconsensual Releases in ‘15’

Bankruptcy courts in New York and Delaware believe that Purdue did not change the law and that nondebtor releases and exculpations are still permissible in chapter 15 cases.

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No Circuit Split: 4 Circuits Say No ‘13’ Trustee Fees if Dismissal Precedes Confirmation

Although lower courts have disagreed, the Second Circuit joined three other circuits in holding that a standing trustee may not retain the percentage fee when chapter 13 cases are dismissed before confirmation. Consequently, ‘13’ debtors with confirmed plans pay standing trustees’ fees.

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