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3rd Circuit

Judge Goldblatt Engrafts the Standing Rules from Truck Insurance onto Chapter 7

At least with regard to standing for objections to claims, Delaware’s Judge Craig Goldblatt believes that the Truck Insurance standard for chapter 11 also applies in chapter 7.

3rd Circuit
Delaware

Equitable Tolling Can Extend Statutes of Limitations Under Section 546(a)

Dilatory actions by a debtor tolled statutes of limitations for a trustee’s suit against a third party.

3rd Circuit
Pennsylvania
Pennsylvania Eastern District

Third Circuit Has a Broad View of ‘Related To’ Jurisdiction After Plan Confirmation

A post-confirmation lawsuit to generate funds to pay a chapter 13 plan establishes ‘related to’ jurisdiction for noncore claims.

3rd Circuit

Third Circuit to Decide: May Magistrate Judges Issue Final Orders on Bankruptcy Appeals?

The Third Circuit will decide whether the broad language in the Federal Magistrate Act allows magistrate judges to issue final orders on bankruptcy appeals when the parties consent.

3rd Circuit

Delaware Judge Sets the Standards for Nondebtor Releases Following Purdue

Nondebtor releases are valid whether the creditor votes for or against the plan, as long as notice to opt out was clear and conspicuous.

3rd Circuit
Delaware

The ‘Home Court’ Rule Does Not Apply in Chapter 15 Cases, District Judge Says

The Delaware district court affirmed Bankruptcy Judge Thomas Horan, who ruled that a creditor cannot sue a chapter 15 debtor in bankruptcy court on a prebankruptcy claim.

3rd Circuit
Delaware

U.S. Trustee Moves to Transfer Venue of New J&J Case from Houston to New Jersey

The new J&J filing starkly raises the issue of venue-shopping. If the new case remains in Houston, the Texas court would not be bound by the Third Circuit’s ‘financial distress’ requirement.

3rd Circuit
New Jersey

Solvent Debtors in Chapter 11 Must Pay Make-Wholes, Third Circuit Says

The opinion by Circuit Judge Thomas Ambro reads Jevic as animating the solvent-debtor exception to the disallowance of unmatured interest.

3rd Circuit

Reports by Risk Management Association Admissible to Prove ‘Ordinary Course’ Defense

Extraordinary collection efforts do not preclude invoking the ‘ordinary course’ defense to a preference.

3rd Circuit
Delaware

Being Forced into Bankruptcy Can Be Irreparable Harm, Third Circuit Says

A noncompetition agreement that would preclude finding other sources of revenue can be the basis for showing irreparable harm and entitlement to a preliminary injunction.

3rd Circuit
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