2nd Circuit

A Suit Between Two Nondebtors Might Have ‘Related To’ Jurisdiction

There could be ‘related to’ jurisdiction if a lawsuit between nondebtors might reduce claims against the bankrupt estate.

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Second Circuit Nixes Nationwide Class Actions for Discharge Violations

The Second Circuit split with the First Circuit, which had permitted nationwide class actions because the discharge injunction is statutory.

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Default Rates Imposed Before Filing Must Be Cured to Assume a Loan Agreement

Monetary defaults, including default rates and fees, must be cured before a debtor may assume a loan agreement, New York’s Judge Bentley rules.

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A Contract to Produce a TV Series Wasn’t a Personal Services Contract

Contracts with corporations aren’t likely to be personal services contracts.

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Connecticut Supreme Court: Increased Homestead Exemption Applies to Existing Debts

Even under an unfavorable choice of law, a debtor in Connecticut was allowed to enjoy the state’s new $250,000 homestead exemption, even though her debts had accrued before the increase went into effect.

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Connecticut

Eligibility for Subchapter V Is Liberal, but Not Wide Open

Courts are split on whether the debt providing eligibility for Sub V must have arisen from a business that was active on the filing date.

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New York Northern District

Trustee Admonished for Filing Suit Reflecting a ‘Disturbing Lack of Judgment’

Providing an adult child with room and board in the family home is not a fraudulent transfer.

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New York Eastern District

Second Circuit Reverses, Reinstates Purdue’s Nondebtor, Third-Party Releases

The concurring opinion, which is really a dissent, urges the Supreme Court to grant certiorari and resolve the split of circuits on nondebtor releases.

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Lack of a Common Plan or Scheme Means It Isn’t Single Asset Real Estate

A two-story commercial condominium wasn’t ‘single asset real estate,’ Judge Mastando holds.

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