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ABI Journal

3rd Circuit

Retention of Jurisdiction Beats Out an Arbitration Agreement, Third Circuit Says

Court retains adjudicatory power unless the arbitration agreement applies to all disputes.

Delaware District Judge Defines ‘Unfair Discrimination’ in Cramdown

A $30 million haircut is not ‘unfair discrimination’ to preclude cramming down a plan.

Delaware’s Judge Sontchi Writes a Seminal Opinion on Sovereign Immunity

A bankruptcy court’s in rem jurisdiction overrides a claim of sovereign immunity.

Bankruptcy Code Preempts State Law Invalidating KERPs, Delaware Judge Says

A waiver in a KERP is enforceable even if it violates state labor law, Judge Carey rules.

Stern Held Inapplicable to Orders Denying Summary Judgment

Delaware district judge explains why Stern doesn’t confer the equivalent of an appeal from an interlocutory order.

New Jevic Settlement Fails, Making Supreme Court’s Reversal More Costly

Unlike Rodney Dangerfield, Jevic workers get respect when Delaware judge rejects a new settlement they dislike.

Accelerating Payments Defeats the ‘Ordinary Course’ Defense

Payments made after threats and demands are not eligible for the ‘ordinary course’ preference defense.

Tax Sales Can Be Avoided as Preferences, New Jersey District Judge Rules

Not a true public sale, a tax foreclosure in New Jersey can be attacked as a preference without implicating concerns about federalism.

Delaware & New York Courts Still Agree on Treatment Among Undersecured Creditors

Post-petition interest accruals aren’t counted in figuring distributions among undersecured creditors with liens on the same collateral.

Federal Common Law of Constructive Trust Works When State Law Won’t

Delaware judge shows sympathy for a creditor being stiffed by the debtor.