Bankruptcy Litigation

Second Circuit Extends the Section 546(e) Safe Harbor to Cover Foreign Law

Second Circuit dismisses the last of 300 lawsuits by foreign liquidators to recover $6 billion for defrauded Madoff investors.

Court :

2nd Circuit

A Disappointed Bidder Didn’t Have Prudential Standing in a Chapter 7 Case

In a chapter 7 case, a disappointed bidder wasn’t required to show Article III standing but was still required to demonstrate prudential standing as falling within the class of persons protected by Section 363.

Court :

New Mexico

Allowed Claim Can’t Be Used Offensively, Second Circuit Says

Second Circuit barred offensive use of claim preclusion based on ‘fairness’ but hinted that offensive claim preclusion might never be permitted.

Court :

2nd Circuit

Trial-Ready Case Remanded to State Court, Not Transferred to Bankruptcy Court

District judge was reluctant to have the bankruptcy court decide whether a suit removed to federal court should be remanded to the state trial court.

Court :

Connecticut

On a Split, the Deadline for Withdrawals Is 30 Days, not the 90 Days in Rule 9027

The time to withdraw a lawsuit to bankruptcy court is governed by a general federal statute that doesn’t refer to bankruptcy, not the Bankruptcy Rule that specifically governs withdrawals to bankruptcy cases, a district judge says.

Court :

Texas Northern District