2nd Circuit

Second Circuit Says Orderly Liquidation Value Is Proper for a Retailer in Chapter 11

The Second Circuit adapts Rash to value the lender’s collateral in chapter 11 where there was a going-concern sale.

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Misleading Advertising to Poach a Debtor’s Customers Is No Stay Violation

False advertising that violates non-bankruptcy law isn’t necessarily a violation of the automatic stay, New York district judge says.

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Buying a Claim Carries with It the Right to Assert Nondischargeability

Joining the majority of courts, Judge Grossman says that the debtor’s conduct, not the identity of the holder of the claim, determines nondischargeability.

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New York Eastern District

When Renewed Pre-Petition Contracts Can and Can’t Have Administrative Status

Claims under pre-petition contracts extended after bankruptcy can have administrative status if there was benefit to the estate, district judge says, reversing the bankruptcy court.

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New York Judge Splits with Colleagues on Redaction of Crypto Customers’ Names

Judge Glenn allowed the redaction of individual crypto customers’ home and email addresses, but requires the disclosure of their names and the amount of their claims. No redactions for business customers.

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Madoff Trustee Scores Another Major Victory in the Second Circuit

The appeals court rules that the Madoff trustee is entitled to summary judgment together with prejudgment interest at 4%.

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The Pandemic Was No Reason for Raising an Investment Banker’s Cap on a Fixed Fee

The length and the effects of the pandemic were capable of being ‘anticipated’ and therefore provide no reason for modifying a fixed fee under Section 328(a).

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Claims Agents Aren’t Junior Judges Ruling on the Validity of Claim Transfers

The transferee of a claim doesn’t have standing to object to recording the transfer of a claim to it on the claims docket, Judge Garrity says.

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Second Circuit Definitively Defines ‘Inquiry Notice’ Under New York Law

Saving Revlon’s bank $500 million, the Second Circuit holds that the law of restitution allows a bank to recover payments made mistakenly when the recipient had no right to receive the payment.

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