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First Circuit Upholds Confirmation of Puerto Rico’s Debt Adjustment Plan

Federal preemption allowed rejection of the defined benefit pension plan for Puerto Rico’s teachers.

1st Circuit

‘Reasonable Possibility’ of a Surplus Gives a Debtor Standing in Chapter 7

Due process considerations mean it’s not harmless error if a debtor was denied standing improperly.

6th Circuit
Tennessee
Tennessee Middle District

Costs of a Disciplinary Proceeding Again Held Nondischargeable Under Section 523(a)(7)

Seventh Circuit says that costs incurred by disciplinary authorities are not in compensation for ‘actual pecuniary loss.’

7th Circuit

Fifth Circuit Has Rigid Standards for Chapter 7 Debtors to Have Standing to Appeal

An individual chapter 7 debtor has standing to appeal if the appeal could affect the debtor’s right to a discharge.

5th Circuit

Sixth Circuit Erects Barriers to FDCPA Suits by Consumers in a 2/1 Opinion

A statutory violation by itself won’t necessarily give a plaintiff constitutional standing.

6th Circuit

Filing Chapter 15 as a ‘Litigation Tactic’ Didn’t Bar ‘Foreign Main Recognition’

Bankruptcy Judge Garrity didn’t impose a good faith filing requirement onto foreign main recognition of a chapter 15 case.

2nd Circuit
New York
New York Southern District

Another Circuit Upholds the 2018 Increase in U.S. Trustee Fees

Dissenters in the Fourth and Fifth Circuits evidently believe that the dual U.S. Trustee/Bankruptcy Administrator system is unconstitutional.

4th Circuit

Faulty Pleading Resulted in Dismissal of a Suit by an ‘Unknown’ Creditor

Third Circuit dicta suggests that failure to create a trust is constitutionally deficient and won’t discharge claims of ‘unknown’ creditors in a chapter 11 plan.

3rd Circuit

Equitable Mootness Doesn’t Violate Due Process, First Circuit Says

Constitutional arguments don’t entitle the creditor to stay relief.

1st Circuit

Tempnology Didn’t Undercut the Validity of Equitable Mootness, First Circuit Says

Confirmation appeals in two big cases are dismissed on the same day for equitable mootness.

1st Circuit
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