Student Loan Servicer Sanctioned $378,000 for Civil Contempt by New York Judge
Bankruptcy Judge Martin Glenn imposed civil contempt sanctions for ignoring court orders over five years.
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Trustee Ordered to Disgorge Fees for Failing to Pay the U.S. Trustee’s Fees
The power to order disgorgement of fees arose under Section 105(a), not from Sections 330 or 331.
No ‘Core’ Jurisdiction to Protect Nondebtors with Injunctions, N.Y. District Judge Says
New York district judge differs with the Third Circuit on a bankruptcy court’s constitutional power to issue nondebtor, third-party releases.
Second Circuit Holds that Flip Clauses in Swaps Are Enforceable
Even if flip clauses are ipso facto clauses, the Second Circuit holds that enforcement is permitted by the safe harbor in Section 560.
Using a Casino’s ATM Makes the Casino the Initial Transferee, Not a ‘Mere Conduit’
New York judge gives casinos the responsibility for assuring that a gambler’s use of a corporate ATM card is not a fraudulent transfer.
Second Circuit Broadly Caps Wage Claims Accelerated Before Bankruptcy
Second Circuit prevents ‘artful drafting’ from evading the cap on golden parachutes under Section 502(b)(7).
Majority of Courts Still Permit Small-Dollar Avoidance Suits in the Debtor’s Home Court
New York district judge agrees with the ABI Journal: Congress did not succeed in requiring trustees to file small-dollar avoidance actions in the defendant’s district.
Fines for Defrauding Consumers Are Dischargeable in a Corporate Chapter 11 Plan
Courts are divided on discharging fines in a corporate chapter 11 case when the government itself was not defrauded.
The Date of Service of a Writ of Garnishment Is the Date of Transfer of a Preference
Circuits are split on the date of transfer resulting from a garnishment.
Saving a Failing Company Doesn’t Entail ‘Defalcation’ Regarding Union Obligations
A properly drafted union contract still failed to leave a company officer with a nondischargeable debt for failing to make employer contributions to a union welfare fund.