Bankruptcy Tweets for July 2011 - Part II

Below are more twitter posts since my last post of July 4 with 47 BK cases and commentary and 15 other items of general interest.  RSS Feeds are also available.  All my twitter posts are here.The insert graphic contains a recent chart from Nate's Market Analysis Blog entitled Greece is the Word.

*               *               *               *

Bankruptcy Cases and Topics

  • Bob Eisenbach post with links to Judge Novack's update to Judge Newsome's bankruptcy research binder (thru BR vol 436).
  • B-OH: Robins "unusual circ" test to extend stay to nondbtrs relevant only re if irrep harm exists warranting prelim inj.
  • BK-HI: 2 year limitations period of §548 is a substantive element of the trustee's claim that can't be equitably tolled.
  • BK-HI: Limitations pd. for §544 avoidance action runs from when last cr. cd reas. have discov. the fraudulent transfer.
  • B-PA: Entry of no asset report divests BK Ct of "related to" jurisdiction, but effect on §523 proceedings is unclear.
  • B-KS-Above median income Dbtr on BK filing, whose income later is under, CAN'T modify plan to reduce applic. cmmtmt. pd.
  • CWT's Mintz, NP's Berman, & SASMF's Butler provide in-depth analysis on municipal BKs & the inadequacies of Chapter 9.
  • Read "Treatment of Interest on Nondischargeable Debts" by Nicholas Ortiz, citing 1st Cir case that interest does accrue.
  • 4th-Severance comp earned post-firing entirely payable per §507(a)(4); no proration to amt attrib to 180 days prefiling.
  • D-MD: 363 Sale limits successor's environ liab per debtor's 1997 EPA Consent Decree to post-363 sale hazardous release.
  • 5th grants direct appeal of op. denying stdg of postconfirm trust bec. plan didnt specifically/unequiv. preserve claim.
  • D-TX won't stay case after completion of fact discovery pending 5th Cir ruling on postconfirm. standing in MPF Holdings.
  • B-PA annuls stay where foreclosure sale occurred w/in minutes after (& w/out notice of) BK filing & no reorg. possible.
  • B-NE lifts stay to all Insurer's prepet DJ action over interp. of prof. liab. policy to continue in NY instead of BK Ct.
  • B-KS: Conting. reversionary int in prepet bond to stay jdgmt worth 0 bec bond was forfeited postpet after jdgmt was final.
  • B-IL: Shareholder deriv. claim not discharged per §523(a)(4) but amt reserved pending review of Stern v Marshall effect.
  • B-MA: HSBC acquired mortgage on debtors' property by valid assignment from MERS & so is entitled to stay relief.
  • B-PA: §105 injunction granted per Monroe Well test bec "unusual circumstances" exist to restrain actions ag non-debtors.
  • B-PA: Most courts consider §105 as the authority to fashion injunctive relief restraining prosecution of 3d-party litig.
  • B-EDNY: Well cited opinion allows bank's claim for default interest but denies make-whole claim for prepayment penalty.
  • B-MT: Legit. justification exists for separate plan classification based on anticipated future aid of crs. in one class.
  • B-IL: Pre-Stern, 7th Cir allowed BK Ct to fix nondisch. debt amt., but constitutional authority to do so not clear now.
  • 3d-Obligations of umbrella insurer exclude duty to defend & not otherwise triggered until underlying policies exhausted.
  • B-FL: Conclusory constr. fr. tsf charge of not being made for reas. equiv. value dismissed absent more re nature of tsf.
  • B-DE: FRCP 9(b) reqts relaxed & interpreted liberally when BK Trustee asserts fraudulent transfer/breach of duty claims.
  • B-OR: §547(a)(2)'s exclusion of substitute obligations from "new value" excludes forbearance from new value defense.
  • BK-NM reviews preference law's "ordinary course of business" defense as applied to "first-time transactions."
  • B-DE: Not def's fraudulent intent that must be pled w/particularity per FRCP 9(b) but circumstances constituting fraud.
  • B-CO rejects investor argument they had no valid contract to purchase stock & thus had unsecured debt not w/in §510(b).
  • B-CO reviews policies behind & broad interp of §510(b) mandatory subord. of claims from purchase & sale of securities.
  • B-FL: Trustee's actual fraudulent transfer claims survive dismissal by plausibly asserting tsf to further Ponzi scheme.
  • B-FL reviews Ransom, Lanning & earlier cases in overruling UST obj. to including op. exp. for 3 cars in means test calc.
  • B-CO: Statutory cap of §502(b)(6)(A) equally applies to claims against guarantors of leases that are in bankruptcy.
  • BK-DE dismisses pref. complaint that doesnt give Def. adequate notice to ascertain which tsfs are at issue is dismissed.
  • B-IL: Pre-Stern, 7th Cir allowed BK Ct to fix nondisch. debt amt., but constitutional authority to do so not clear now.
  • D-IL imposes §1927 ag, Ch 7 Trustee's atty not for crummy legal mal case v. Mayer Brown but for unprof. conduct in depo.
  • B-NJ denies postconfirm trustee mot. to disgorge fees of admin. insolv. estate bec consent order award was final award.
  • D-CA affirms BK Ct's expunging of class claim for unpaid wages against Ch 13 owners of parking lots.
  • D-CA reviews lack of policy factors supporting class claims in BK, incl. ease of filing claims & efficiency of process.
  • D-CA: Failure of class claimants to file Rule 9014 motion for application of Rule 23 is dispositive in favor of denial.
  • BK-AL: 363 sale of golf course prop. not free & clear of implied restrictive covenant for use of a golf course.
  • B-MI approves BK settlement & provides extensive review (after 65 trial days) of the history behind soft body armor.
  • B-FL: Defendant's failure to produce expert to refute Trustee's insolvency expert dooms its fraudulent transfer defense.
  • B-DE: Cplt dismissed per Twiqbal that sets forth only conclusory allegations parroting Section 547's statutory language.
  • B-DE: Preference cplt doesn't require attached copies of invoices, bills, canceled checks etc., to satisfy Twiqbal stds.
  • B-DE: To satisfy Twiqbal in preference cplt, details of antecedent debt req'd & merely reciting §547 stds insufficient.
  • B-DE: Twiqbal in §547 cplt requires evid. of preexisting dbtr/cr. rel. (like contract details & goods/servs. provided).

 Topics of General Interest

  • Excellent interview by David Lat of Jeh Johnson, ex-Paul Weiss partner, & now General Counsel of the Defense Department.
  • The future of jury trials? Watch Michigan's experiment in adopting rules to significantly enhance juror involvement.
  • RT @DouglasMintz: Good piece on the next financial crisis (whenever it should arise.
  • Casey Anthony defense's use of social media to refine its theories of the case as the trial progressed discussed here:
  • WWII in photos: A continuing 20 part photo-narrative retrospective sponsored by The Atlantic:

 Thanks for reading!


Post A Comment / Question

Remember personal info?