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ABI Journal

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BAP Upholds Confirmation of a Plan with No Trust for Future Asbestos Claimants

Ninth Circuit BAP confirmed a plan with no future creditors’ trust when the debtor claimed there were no future claims and no one was in court representing future claimants.

Supreme Court Grants ‘Cert’ in a Bankruptcy Case on Rule 60(b)(4)

Coney Island is a bankruptcy case, but the question is whether there is a time limit for a Rule 60(b)(4) motion to set aside a judgment for lack of personal jurisdiction over the defendant.

Panel Trustee’s Personal Misconduct Was Grounds for Removal for ‘Cause,’ BAP Says

The panel trustee had been found in state court to be a spousal abuser who lied in obtaining a Covid loan.

On a Split, Ninth Circuit BAP Holds: Misconduct in ‘11’ Doesn’t Prevent Conversion to ‘7’

Given that chapter 7 has remedies like denial of discharge for a debtor’s misconduct, bad faith in chapter 11 doesn’t allow dismissal on conversion to chapter 7.

Second Circuit Doesn’t Compel a Liquidating Trustee to Arbitrate with an Insurer

Following the Supreme Court’s Morgan v. Sundance, the appeals court interpreted an arbitration agreement like any other contract, with no policy favoring arbitration over litigation.

The ‘Probate Exception’ to Federal Subject Matter Jurisdiction Is Narrow

The ‘probate exception’ to federal subject matter jurisdiction does not prevent bankruptcy courts from basing decisions on state trusts and estates law, except in limited circumstances.

A Disguised Loan Agreement Didn’t Create a ‘Fair Ground of Doubt’ Under Taggart

The Fifth Circuit undertook a legal analysis of a complex loan agreement to decide there was no ‘fair ground of doubt’ under Taggart that the lender was violating the discharge injunction.

Fifth Circuit Arguably Expands the Barton Doctrine’s Ultra Vires Exception

A receiver was tagged $45,000 for failing to turn over estate property by demanding payment of administrative fees.

A Transfer from the Debtor to a Constructive Trust Isn’t a Transfer of Debtor’s Property

If there’s a constructive trust on property in the debtor’s name, the debtor was only the trustee of the constructive trust and had no legal interest in the property.

Supreme Court Hears Argument on Allowing a Trustee to Sue the IRS for Fraudulent Transfers

Most justices seemed inclined to believe that the waiver of sovereign immunity in Section 106(a) does not abrogate the “actual creditor” requirement in Section 544(b)(1).