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2nd Circuit

Setoff Can’t Be Raised as a Defense to Receipt of a Fraudulent Transfer

The Madoff case makes more law: A claim against a bankrupt estate can’t be set off against liability for receipt of a fraudulent transfer because one arose before bankruptcy and the other arose after.

2nd Circuit
New York
New York Southern District

Judge Explains Why Tax Liens Are Subordinated to Domestic Support Obligations

Congress decided to deviate from standard priorities by providing in Section 724 that unsecured domestic support obligations come ahead of tax liens.

2nd Circuit
New York
New York Eastern District

A ‘Litigation Tactic’ Isn’t Fatal in Chapter 15

A bankruptcy judge in New York was deferential to foreign liquidators using chapter 15 to extinguish a lawsuit in the U.S. that they saw as a nuisance.

2nd Circuit
New York
New York Southern District

Consent to a Sale for Less than the Mortgage Debt Doesn’t Waive a Deficiency Claim

A secured lender need not obtain a deficiency judgment to retain a claim against an insurer for a shortfall in a bankruptcy sale, Bankruptcy Judge Grossman says.

2nd Circuit
New York
New York Eastern District

It’s Ok to Avoid a Fraudulent Transfer Even if It Makes the Debtor Solvent, Circuit Says

The Second Circuit found discretion to avoid a constructively fraudulent transfer of exempt property that would have enabled the debtor to pay her creditors in full.

2nd Circuit

Foreign Sovereign Immunity Bars the Madoff Trustee from Recovering $20 Million

A district judge in New York reversed the bankruptcy court, which had held that a Kuwaiti public pension fund was not entitled to sovereign immunity for having engaged in commercial activity.

2nd Circuit
New York
New York Southern District

Bankruptcy Judge Stong Penned a Compendium About Eligibility for Subchapter V

Another judge holds that dealing with debt from a defunct business satisfies the eligibility requirement for Subchapter V.

2nd Circuit
New York
New York Eastern District

Coercive Contempt Sanctions Upheld by Second Circuit Under Inherent Authority

Court’s inherent authority to sanction allows coercive contempt sanctions where rules and statutes are not up to the task.

2nd Circuit

A RICO Case Shows that Final Fee Allowances Don’t Confer Immunity

The RICO suit by Jay Alix Against McKinsey mostly survived a motion to dismiss.

2nd Circuit
New York
New York Southern District

Another Article III Judge Won’t Let Bankruptcy Stop Suits Against Nondebtors

The same day the Supreme Court decided to hear Purdue, a district judge on Long Island, N.Y., sent dozens of long-stayed sexual abuse cases back to state court where the debtor is not a named defendant.

2nd Circuit
New York
New York Eastern District
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