Texas Judge Disagrees with Second Circuit on Sanctions for Violating Rule 3002.1
Bankruptcy Judge Eduardo Rodriguez explained why the Second Circuit was wrong in ruling that violators of Rule 3002.1 are only liable for compensatory damages.
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Journal Issue
Bankruptcy Rule
Split Heading to the Tenth Circuit on Sovereign Immunity for Section 544(b) Claims
The Tenth Circuit will likely take sides on a split between the Ninth and Seventh Circuits on Section 544(b) state-law claims brought by a trustee in the shoes of an actual creditor.
Affirmance Shows that Merit Management Has Been Gutted in the Second Circuit
Properly structuring a leveraged refinancing in the Second Circuit can avoid attack as a fraudulent transfer despite the Supreme Court’s effort at narrowing the ‘safe harbor.’
Good Faith Is No Defense to an Allegedly Willful Stay Violation, Third Circuit Says
Lack of authority on point is no defense to a willful violation of the automatic stay, according to the Third Circuit.
Appeal from a ‘PPP’ Loan Dismissed as Equitably Moot
Would Section 364(c) validate a “PPP” loan even if an order compelling the SBA to make the loan was reversed on appeal?
Journal Issue
Bankruptcy Code
Bankruptcy Rule
Judge Concerned About Legal Costs in Norwich Diocese Bankruptcy
The federal judge handling the bankruptcy filing by the Diocese of Norwich, Conn., raised concerns yesterday about the number, cost and role of the lawyers and financial experts in the case and their possible effect on the compensation available to those who say they were sexually assaulted by diocesan priests and other employees, The Day reported. At one point Judge James Tancredi called the $490-an-hour paralegal rate charged by Ice Miller, the New York City firm hired by the diocese, as "shocking" for someone who doesn't have a license to practice law. Judge Tancredi also warned that if the case gets "get out of control with professional fees," he would not hesitate to look at implementing measures such as budget caps. He also urged lead diocesan attorney Louis DeLucia to "efficiently deploy his staff" to "avoid rate shock" at the end of the case. U.S. trustee attorney Steven MacKey added the diocese's decision to hire two legal firms is increasing the legal costs. He said that his office will continue to monitor how the diocese is spending money on its legal and financial experts to avoid unnecessary costs.
