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3rd Circuit

Stays Are Automatic from Denial of a Motion to Dismiss for Sovereign Immunity

Courts are divided on whether the district court loses jurisdiction to stay proceedings in bankruptcy court after the filing of a notice of appeal.

3rd Circuit
Delaware

Delaware Judge Upholds U.S. Trustee Fee Increase in Pending Cases

Parting with some other bankruptcy courts, Judge Walrath upholds the constitutionality of the major increase in U.S. Trustee fees that was imposed on pending cases in early 2018.

3rd Circuit
Delaware

A Pennsylvania Gambling License Isn’t ‘Property’ Recoverable as a Fraudulent Transfer

Sovereign immunity required dismissal of a suit to recover the value of a gambling license because the suit wasn’t an ancillary exercise of the bankruptcy court’s in rem jurisdiction over a res.

3rd Circuit
Pennsylvania
Pennsylvania Eastern District

Third Circuit Issues an Important Decision on Liquidation of Repo ‘Credit Enhancements’

Appeals court upholds finding that the mortgage securities market in 2007 was declining, not dysfunctional.

3rd Circuit

Third Circuit Finds Constitutional Power to Grant Releases in Confirmation Orders

Third Circuit emphasizes the limitation of nonconsensual, third-party releases to ‘exceptional’ cases.

3rd Circuit

Opting Out Won’t Justify Imposing Third-Party Releases, Delaware Judge Says

Saying she is in the minority in her district, a new Delaware judge ruled that allowing creditors to opt out won’t permit a plan to impose nonconsensual, third-party releases.

3rd Circuit
Delaware

Circuit Split Narrows on the Automatic Stay and Turnover of Repossessed Cars

Third Circuit also holds that turnover in Section 542(a) is not automatic. The debtor must mount an adversary proceeding to obtain a turnover of property.

3rd Circuit

Sovereign Immunity Doesn’t Insulate States from Lien Stripping, District Court Says

States have no sovereign immunity defense to lien stripping, even if the state has not filed a proof of claim.

3rd Circuit
Pennsylvania
Pennsylvania Western District

A 362(k) Claim May Be Brought Without Reopening the Bankruptcy, Circuit Says

Section 362(k) creates a private right of action that may be maintained even after dismissal of the underlying bankruptcy, the Third Circuit says.

3rd Circuit

‘Disinterestedness’ Governs Approval of a Future Claimants’ Representative

Negotiating a prepackaged asbestos plan and having been paid by the debtor does not disqualify a future claimants’ representative under the disinterestedness standard.

3rd Circuit
New Jersey
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