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ABI Journal

California Eastern District

Judge Klein Charts the Path for Discharging Student Loans and Not Being Reversed

Bankruptcy Judge Christopher Klein provides authority for student loan debtors who win in bankruptcy court but face an appeal aimed at the trial court’s fact-findings.

DocuSign Not Permitted Absent Existence of the Document with a ‘Wet’ Signature

As a general rule, counsel must show the existence of a document with a ‘wet’ signature to use an electronically signed version in court.

Deferred Settlement Agreements Aren’t Executory Contracts and Can’t Be Assumed

A deferred settlement agreement, like a workout agreement, can’t be assumed under Section 365.

Like Willful Violations, Technical Stay Violations Are Void, Not Just Voidable

California bankruptcy judge doubts the Ninth Circuit will adopt the BAP’s dicta by holding that technical stay violations are only voidable, not void.

DIP Counsel’s Right to Compensation Ends Immediately on a Trustee’s Appointment

Appealing an order appointing a chapter 11 trustee does not entitle the DIP’s counsel to compensation pending appeal, Judge Klein says.

Rule 9011 Sanctions Imposed for Filing Decedent’s Estate to Halt Foreclosure

Judge Christopher Klein lays out the requisites for imposing sanctions under Rule 9011 for frivolous filings.

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.

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.

Denial of a Motion to Convert from ‘11’ to ‘7’ Is Not Final and Thus Not Appealable

Until now, there has been surprisingly little precedent directly on point to say that denial of a motion for conversion from chapter 11 to chapter 7 is not a final order subject to appeal

Debtors Can’t Easily Glom Uncashed Distribution Checks

Just because a creditor doesn’t cash a distribution check doesn’t mean it’s abandoned and reverts to the debtor.