New York Southern District

Misleading Advertising to Poach a Debtor’s Customers Is No Stay Violation

False advertising that violates non-bankruptcy law isn’t necessarily a violation of the automatic stay, New York district judge says.

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When Renewed Pre-Petition Contracts Can and Can’t Have Administrative Status

Claims under pre-petition contracts extended after bankruptcy can have administrative status if there was benefit to the estate, district judge says, reversing the bankruptcy court.

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New York Judge Splits with Colleagues on Redaction of Crypto Customers’ Names

Judge Glenn allowed the redaction of individual crypto customers’ home and email addresses, but requires the disclosure of their names and the amount of their claims. No redactions for business customers.

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The Pandemic Was No Reason for Raising an Investment Banker’s Cap on a Fixed Fee

The length and the effects of the pandemic were capable of being ‘anticipated’ and therefore provide no reason for modifying a fixed fee under Section 328(a).

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Claims Agents Aren’t Junior Judges Ruling on the Validity of Claim Transfers

The transferee of a claim doesn’t have standing to object to recording the transfer of a claim to it on the claims docket, Judge Garrity says.

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Claims Agents Are Barred from Making Money on the Side from the Claims Docket

Bankruptcy Judge Sean Lane in New York barred a chapter 11 claims agent from selling the claims docket to a claims trader in return for a share of the fees earned by the trader.

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Caymans Recognized as the ‘COMI’ for a Property Company Operating in China

A country that was ineligible to host a nonmain foreign proceeding was nonetheless held to have the foreign main proceeding.

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Lender Defaulted on the Merits for ‘Prolonged, Extraordinary’ Discovery Violations

Despite contrary Second Circuit dicta, retiring Judge Robert Drain certified a nationwide class in a suit for violation of the discharge injunction.

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Another New York District Judge Is Hostile to Nondebtor, Third-Party Releases

At the risk of committing error, a district judge in New York reads a third-party release to cover only derivative claims, not direct claims that a creditor may have against a nondebtor.

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