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ABI Journal

4th Circuit

Bestwall Concurrence Believes in ‘Liberalization’ of Bankruptcy Powers

The concurring opinion in Bestwall could be read to suggest that Circuit Judge G. Steven Agee might have an open mind if a confirmed plan comes to the Fourth Circuit on appeal.

Bestwall Dissenting Opinion Reads Like Dismissal of LTL Mgmt for a Bad Faith Filing

The Bestwall dissenter understands the Bankruptcy Clause as having the 18th century definition of ‘bankruptcy,’ thus requiring insolvency or inability to pay debts.

Fourth Circuit Rules on Jurisdiction, not ‘Financial Distress’ for a Chapter 11 Debtor

Fourth Circuit majority and dissenting opinions might be read to suggest that Bestwall could have tough sledding on an appeal from confirmation since the debtor is solvent.

Forum Non Conveniens Applied When Chapter 15 Would Have Been a Better Fit

The Fourth Circuit’s nonprecedential opinion means that chapter 15 doesn’t have the exclusive remedy for enjoining U.S. litigation in cross-border bankruptcies.

Advice from a Banker Negated a Finding of Fraudulent Intent, Fourth Circuit Says

‘Clear error’ required reversing a finding of fraudulent intent to embezzle.

On Remand from the Supreme Court in Truck Ins., Fourth Circuit Upholds Confirmation

Fourth Circuit says there’s nothing in the Bankruptcy Code requiring ‘anti-fraud’ provisions in a mass tort chapter 11 plan. The appeals court also holds that an ‘asbestos’ plan isn’t filed in bad faith when the plan gives an insurer no more rights than the insurer has under its policy.

A Homeowners’ Association Is Not a ‘SARE’ and Is Eligible for Sub V of Chapter 11

A homeowners’ association is not a single asset real estate debtor because the HOA’s income doesn’t come from the common areas but from assessments paid by unit owners.

Bankruptcy Judge Upheld: No Arbitration on Claims for Violating the Automatic Stay

Bankruptcy Judge Paul Black was affirmed in district court for holding that arbitration of claims for violating the automatic stay would conflict with the centrality of administration in bankruptcy cases.

Chapter 13 Debtors Can’t Sell Co-Owned Property Under Section 363(h)

On a question where the courts are split, Bankruptcy Judge Pamela McAfee sides with the majority and holds that a chapter 13 debtor can’t sell co-owned property.