9th Circuit | ABI

Another Circuit Says: Old Bankruptcies Aren’t Grounds for Removal to Federal Court

This month, two circuits found no ‘related to’ bankruptcy jurisdiction for climate-change lawsuits against energy companies.

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Section 328(c) and Rule 2014(a) Both Permit Denial of All Compensation

Undisclosed representation of the debtor’s principal resulted in denial of all compensation sought by counsel for the corporate debtor.

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California Eastern District

BAP Describes When a Nonbankruptcy Court’s Order Does or Does Not Violate the Stay

If a proceeding is sub judice when the defendant files bankruptcy, the plaintiff should figure out whether a decision after bankruptcy would violate the automatic stay.

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A Client Can Be Liable for Sanctions from the Lawyer’s Violation of Rule 9011

Judge Klein let a lawyer off the hook for violating Rule 9011 because the lawyer had already been punished enough.

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California Eastern District

Debtor Can’t Be Punished for Shifting Legal Theories After an Unfavorable Decision

ate law might provide an equitable basis for denying a state-law exemption, although Law v. Siegel won’t permit equity to defeat an exemption claim under federal law.

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Converting a Claim Based on Securities to Judgment Won’t Bar Subordination, BAP Says

A lien securing a claim based on the purchase or sale of securities is subordinated, just like the claim, the Ninth Circuit BAP says.

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California Judge Splits with his BAP; Subpoenas Require Court Approval Under Barton

Someone seeking to issue a subpoena to a trustee is the proper party to seek leave under the Barton doctrine, Judge Clarkson says.

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California Central District

Denial of Stay Modification Without Prejudice Can Be Final, Ninth Circuit Says

The Ninth Circuit answered a question left open by the Supreme Court in Ritzen.

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Debtors Get Mortgage Interest Deduction They Didn’t Pay in a Short Sale

For those entitled to the mortgage interest deduction, debtors may have unexpected tax benefits from short sales.

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Bad Faith Filings in Chapter 15 Can Be Entitled to ‘Foreign Main Recognition,’ BAP Says

The bankruptcy court has no discretion to deny recognition in chapter 15 if the requirements of Section 1517(a) have been met.

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