Tenth Circuit BAP Disagrees with the Fourth Circuit on Inapplicability of Article III
The split deepens on whether the jurisdiction of bankruptcy courts is limited by Article ‘case or controversy’ requirements.
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New Jersey Picks Up Another Big Bankruptcy Case With WeWork Chapter 11
WeWork’s chapter 11 filing last week marked at least the seventh large bankruptcy filed in New Jersey since last November, signaling the Garden State’s increasing popularity as a destination for companies seeking to restructure their debt, WSJ Pro Bankruptcy reported. Judges with many years on the bench have accumulated a stack of decisions, which helps bankruptcy advisers to pick a venue for their clients, said Prof. Robert Lawless, of the University of Illinois College of Law. The companies and their advisers are “obviously happy with the New Jersey court” in terms of how it rules, Lawless said. Historically, bankruptcy courts in Wilmington, Del., and New York attracted major corporate filings, but other venues also gained traction. For New Jersey, the most recent large filings began last November with cryptocurrency lender BlockFi, followed by four major cases in April: the second bankruptcy filing of Johnson & Johnson’s LTL Management, wedding-gown chain David’s Bridal, home-goods chain Bed Bath & Beyond and Berkshire Hathaway-owned former talcum powder supplier Whittaker, Clark & Daniels. Last month, Rite Aid, a Philadelphia-based drugstore chain, filed for bankruptcy in New Jersey to deal with hundreds of federal, state and private lawsuits alleging the company oversupplied prescription painkillers that helped fuel the nation’s opioid epidemic. While BlockFi, LTL Management and Bed Bath & Beyond listed New Jersey as their main addresses, the other four filers are based primarily outside of the state.
Rooker-Feldman Only Applies to Someone Who Was a Party in State Court
Rooker-Feldman is applied narrowly these days and isn’t a substitute for collateral estoppel.
In MOAC on Remand, the Second Circuit Vacates the Order Assigning the Lease
The Second Circuit is remanding to district court for a ruling on the relief available to the landlord, given that the sale closed years ago.
It’s Ok for Lenders to ‘Manufacture’ a Favorable Venue, Delaware Judge Says
A Delaware opinion states that debtors can’t reincorporate to manufacture venue, but it’s permissible for lenders to do so.
Bankruptcy Judge Refuses to Enforce an Arbitration Agreement
An exculpation clause in a chapter 11 plan protected the owner’s counsel from a malpractice suit.
Labor Union Beats Back a Motion to Transfer Venue to the Bankruptcy Court
A district judge, who had been a bankruptcy and BAP judge, narrowly interpreted 28 U.S.C. § 1412 as being inapplicable to pending suits only “related to” the bankruptcy.
Supreme Court to Hear a Third Bankruptcy Case this Term: Standing Under § 1109(b)
Supreme Court to decide whether a creditor has standing to object to any provision in a chapter 11 plan, even provisions that don’t affect the creditor.