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3rd Circuit

Equity Won’t Extend the Deadline for Filing a Dischargeability Complaint

The circuits are split on whether equity can extend the 60-day deadline for filing dischargeability complaints.

3rd Circuit
Pennsylvania
Pennsylvania Eastern District

Debtors’ Lawyer Has No 7th Amendment Right to Sue for Post-Petition Fees, Circuit Says

The debtors’ inequitable conduct didn’t relieve counsel of the duty to disclose fees charged for post-petition litigation.

3rd Circuit

Section 107 Governs Sealing of Court Documents, Not Common Law, Third Circuit Says

Section 107 more broadly protects trade secrets and confidential information than does common law.

3rd Circuit

Nondebtor Releases Are Still Permissible in Chapter 15, Delaware Judge Says

Foreign reorganizations with nondebtor releases are not ‘manifestly contrary’ to public policy after Purdue, according to Delaware’s Bankruptcy Judge Thomas Horan.

3rd Circuit
Delaware

Claim Isn’t Disallowed if the ‘Statute’ Lapses After the Claim Is Filed, Third Circuit Says

The Third Circuit upheld Bankruptcy Judge Goldblatt of Delaware where the answer was self-evident but there was no controlling authority.

3rd Circuit

No Second Restructuring of the Same Debt in a Different Venue

Delaware judge wouldn’t allow a chapter 11 debtor to restructure the same secured debt a second time in a different venue.

3rd Circuit
Delaware

Without Levy, a Recorded Judgment Lien Is Unperfected in Some States

In New Jersey, a trustee’s hypothetical judicial lien has priority over a judgment lien if the judgment lienholder has not made a levy on the property.

3rd Circuit
New Jersey

Denial of $21 Million in Fees for Boy Scouts Ad Hoc Committee Upheld on Appeal

Delaware district court rules that debtors and trustees alone have standing to propose spending estate money outside of the ‘ordinary course.’

3rd Circuit
Delaware

Applying Pressure on the Debtor Obviates the ‘Ordinary Course’ Defense to a Preference

The ‘ordinary course’ defense only applies to credit terms with healthy customers, not to debtors in financial distress, even if pressure is ordinary in the industry.

3rd Circuit
Delaware

The Client’s Business Judgment Held to Justify a ‘Discretionary’ Fee Award

A district court in New Jersey says that a discretionary fee award is neither a bonus nor an enhancement.

3rd Circuit
New Jersey
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