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Automatic Stay

Fifth Circuit Receivership Opinion Raises Questions About the Automatic Stay

Fifth Circuit says that the court must have obtained personal jurisdiction over a third party in a receivership to enforce an injunction. Is the same true for the automatic stay and the discharge injunction in bankruptcy? Is there no injunction before there’s personal jurisdiction?

5th Circuit

Supreme Court’s Jarkesy Opinion Clarifies Granfinanciera on Jury Trial Rights

A Supreme Court nonbankruptcy decision means there is no right to a jury trial in the claims-allowance process in bankruptcy.

Supreme Court

Fifth Circuit Tells Us What Ritzen and Travelers Mean and Don’t Mean

To revisit denial of a lift-stay motion, the prior order denying modification of the stay isn’t required to say ‘without prejudice.’

5th Circuit

Tyler Applied Retroactively to Set Aside a Judgment of Tax Foreclosure

Tyler was applied retroactively because the debtor’s efforts to set aside a tax foreclosure judgment were ‘in the pipeline’ when bankruptcy began.

3rd Circuit
New Jersey

Dismissal of Second J&J Chapter 11 Filing Upheld by Return Mail in the Circuit

The ‘attenuated possibility of insolvency’ in the future does not establish ‘financial distress,’ Circuit Judge Ambro said, interpreting his own prior opinion.

3rd Circuit

Enjoining a Prepetition Policy Doesn’t Violate the Automatic Stay, Fifth Circuit Says

Seeking attorneys’ fees from the debtor for a postpetition civil rights violation does not by itself make a postpetition lawsuit subject to the automatic stay.

5th Circuit

Benchnotes September 2024

Sept 2024

Bankruptcy Code
11 U.S.C. § 105
525
1123
1327
1328
Topic Tags
Automatic Stay
Plan Confirmation
Consumer Bankruptcy
Consumer Debt
Discharge/Dischargeability
Business Reorganization

Arbitration Nixed on a Lender’s Claims for Violation of the Automatic Stay

Bankruptcy Judge Paul Black denied a motion to compel arbitration but didn’t decide whether he would certify a class.

4th Circuit
Virginia
Virginia Western District

Chicago’s Judge Cox Enjoins Suits Against Nondebtors, Distinguishing Purdue

After Purdue, two bankruptcy judges now say that preliminary injunctions protecting nondebtors are permissible to foster successful chapter 11 reorganizations.

7th Circuit
Illinois
Illinois Northern District

Delaware Judge Explains How to Obtain a PI Protecting Nondebtors After Purdue

In the first decision on the topic after Purdue, Delaware’s Judge Goldblatt denied the debtor’s motion for a preliminary injunction to stop a lawsuit against nondebtors.

3rd Circuit
Delaware
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