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4th Circuit

Fourth Circuit Rules Emphatically that Taggart Applies to All Contempt in Bankruptcy

Reliance on advice of counsel is not a complete defense to contempt citations.

4th Circuit

Texaco’s Plan in 1988 Wasn’t Grounds for Removal to Federal Court, Fourth Circuit Says

In a case that may be headed to the U.S. Supreme Court at least once more, the Fourth Circuit is subjecting 26 multinational oil companies to the tender mercies of the Maryland state courts.

4th Circuit

‘Once a Creditor, Always a Creditor,’ Even if the Claim Is Paid, Judge Phillips Says

Being branded as a creditor is like a tattoo; it won’t ever come off.

4th Circuit
Virginia
Virginia Eastern District

Circuit Split Widens Sovereign Immunity for Section 544(b) Claims

The circuits are now split 2/1 on the waiver of sovereign immunity under Section 544(b) for lawsuits by a trustee based on claims that could have been made by an actual creditor.

4th Circuit

The Concept of Bifurcated Fee Agreements Approved on Appeal in South Carolina

Reversing the bankruptcy court, the district court decided that a local rule did not bar bifurcated fee arrangements altogether.

4th Circuit
South Carolina

Another District Judge Emphatically Rejects a Plan with Non-Debtor Third-Party Releases

A district judge in Virginia holds that third-party, non-debtor releases must be approved by district judge under Stern and must comply with the strictures of Federal Rule 23.

4th Circuit
Virginia
Virginia Eastern District

Interest Not Required on 100% ‘13’ Plans that Don’t Commit All Disposable Income

Treaties disagree on whether interest is required in 100% chapter 13 plans when the debtor is not devoting all disposable income to the plan.

4th Circuit
South Carolina

Johnson & Johnson Venue Transferred from North Carolina to New Jersey

Deciding to transfer venue, a North Carolina bankruptcy judge said that the debtor underwent a corporate restructuring ‘purely for the purpose of filing bankruptcy.’

4th Circuit
North Carolina
North Carolina Western District

To Count in Subchapter V, Loans Need Not Benefit Only the Small Business Debtor

If a loan benefits both a debtor and someone else, the loan still may be included in counting whether the debt “arose from the commercial or business activities of the debtor.”

4th Circuit
Maryland

Fourth Circuit Would Discharge CERCLA Claims if Pollution Occurred Before Filing

Maryland district judge predicts that the Fourth Circuit would adopt a debtor-friendly rule more broadly discharging environmental claims when the acts occurred before chapter 11.

4th Circuit
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