Exercise Caution in Electing Remedies Against Someone Who May File Bankruptcy
Sometimes, being too aggressive backfires when the defendant files bankruptcy.
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‘Lifetime’ Club Memberships May Not Survive Bankruptcy
Before paying up front for a lifetime club membership, read the fine print and consult a lawyer.
A Gaming License Isn’t ‘Property’ and Thus Can’t Be Fraudulently Transferred
A gaming license in Pennsylvania is a revocable ‘privilege.’
Repaying Salary After Arrest Isn’t Compensation for Loss and Isn’t Dischargeable
An obligation can be penal in nature, and thus nondischargeable, even though it’s measured by pecuniary loss.
A Credit Bid Doesn’t Cap the Value of a Secured Lender’s Collateral
Delaware district judge holds that the final bid at auction, not the lender’s last credit bid, fixes the value of the lender’s collateral.
University Medical Unscathed After Denby-Peterson, Delaware District Judge Says
The government lost a winnable appeal by failing to present evidence in bankruptcy court.
Undisclosed Fee Sharing Results in Disqualification and Disgorgement in Delaware
Since they weren’t bankruptcy lawyers, the firm wasn’t disqualified for the first nondisclosure offense. The second time, Delaware’s Judge Dorsey ordered disqualification and disgorgement
Cramdown Doesn’t Require Strict Enforcement of Subordination, Third Circuit Says
Pragmatic opinion by Circuit Judge Ambro allows cramdown to achieve ‘rough justice.’
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.
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.