3rd Circuit

Cramdown Doesn’t Require Strict Enforcement of Subordination, Third Circuit Says

Pragmatic opinion by Circuit Judge Ambro allows cramdown to achieve ‘rough justice.’

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Third Circuit Backtracks; Malice Not Required for Punies on a Dismissed Involuntary

Even when after a finding of bad faith, the court retains discretion to deny punitive damages, Third Circuit says. Compensatory damages are not available if the debtor was failing anyway.

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3rd Circuit

Creditors Have Standing but Not Authority to Pursue Estate Claims, Third Circuit Says

Third Circuit’s Judge Bibas says that courts use the wrong nomenclature when they say that creditors lack standing to pursue claims belonging to the estate. It’s a question of statutory authority, he said, not standing.

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3rd Circuit

Federal Income Taxes for a ‘Straddle Year’ Are Administrative Priority Claims

On an issue with no appellate authority, a Delaware district judge rules that federal income taxes are administrative claims if filing occurs before the year’s end.

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3rd Circuit

Delaware

Suit by Foreign Liquidators Was Remanded to State Court

Delaware district judge permits remand when the suit was subject to mandatory abstention.

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3rd Circuit

Delaware

Delaware District Court Upholds Discharge of Environmental Fines in Chapter 11

Environmental fines are discharged in chapter 11 because they do not result from pecuniary loss.

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3rd Circuit

Delaware

Third Circuit Endorses an Alternative to Section 524(g) Trusts for Asbestos Cases

Appeals court says that using a trust for future asbestos claims rather than a bar order would be cheaper and avoid unnecessary litigation.

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3rd Circuit

Bankruptcy Court Had ‘Core’ Jurisdiction over Third-Party Dispute, Third Circuit Says

The bankruptcy court had ‘core’ jurisdiction over a dispute between two nondebtor third parties because the litigation involved the interpretation of a financing order.

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3rd Circuit