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ABI Journal

3rd Circuit

A Transfer from the Debtor to a Constructive Trust Isn’t a Transfer of Debtor’s Property

If there’s a constructive trust on property in the debtor’s name, the debtor was only the trustee of the constructive trust and had no legal interest in the property.

Delaware Judge Writes a Treatise for Avoiding WARN Act Liability

Good faith and attention to detail should enable a failing business to avoid WARN Act liability.

Bankruptcy Has No General Exception to an Automatic Stay After Denial of Arbitration

A Delaware bankruptcy judge says there could be circumstances when automatic stays will not be enforced after the court has denied a motion to compel arbitration.

District Court Upholds Redaction of Customer Information in a Cryptocurrency Case

Prominent news organizations failed to overturn the redaction of customer information in a big cryptocurrency case.

For Foreign Liquidators, Chapter 15 Is Better than Using Common Law, Decision Shows

A foreign liquidator, who ran into problems in the Third Circuit using common law, changed course and quickly obtained relief in chapter 15.

Giving the Debtor a Grace Period to Cure Isn’t Extending a Plan Beyond Five Years

In the Third Circuit, it’s possible to cure a payment default under a chapter 13 play beyond five years, district judge says in affirming the bankruptcy court.

Notice of Intention to Assume Is Enough to Beat the Automatic Rejection Deadline

A bankruptcy judge in New Jersey holds that it’s enough to file a notice of intention to assume before the automatic lease rejection deadline

Standard Deviation Can’t Be the Only Test to Prove the ‘Ordinary Course’ Defense

District judge in Delaware says that expert testimony must establish whether standard deviation is a proper statistical test to prove the ‘ordinary course’ defense to a preference.

Sufficiency of Preference and Fraudulent Transfer Complaints Described by Judge Goldblatt

To defeat motions to dismiss, preference and fraudulent transfer complaints need not contain all the information to be learned in discovery, Bankruptcy Judge Craig Goldblatt says.

A Retirement Plan that’s Not ‘Tax-Qualified’ Is Still Excluded from Estate Property

Declining to create a circuit split, Third Circuit Judge Thomas Ambro held that a retirement plan structured according to ERISA is excluded from estate property even if transactions by the trust violated ERISA or IRS Code regulations.