Second Circuit Definitively Defines ‘Inquiry Notice’ Under New York Law
Saving Revlon’s bank $500 million, the Second Circuit holds that the law of restitution allows a bank to recover payments made mistakenly when the recipient had no right to receive the payment.
Court:
Average Lateness and Bucketing Tests Confirm the Ordinary Course Defense
A district judge in Brooklyn applied the two most commonly used tests for the ‘ordinary course’ defense to uphold dismissal of preference complaints.
Bankruptcy Judge Finds Liability for a Municipality’s Denial of Due Process Rights
A local government removed a lawsuit to bankruptcy court, but the bankruptcy judge turned around and slam-dunked the government for violating the plaintiff’s Fourteenth Amendment rights.
Claims Agents Are Barred from Making Money on the Side from the Claims Docket
Bankruptcy Judge Sean Lane in New York barred a chapter 11 claims agent from selling the claims docket to a claims trader in return for a share of the fees earned by the trader.
Channeling ‘Asbestos’ Claims Is a Legitimate Use of Chapter 7, District Judge Says
Reversing the bankruptcy court, a district judge ruled that a company may file in chapter 7 even when there are no operations and no assets aside from insurance.
Court:
Caymans Recognized as the ‘COMI’ for a Property Company Operating in China
A country that was ineligible to host a nonmain foreign proceeding was nonetheless held to have the foreign main proceeding.
Second Circuit Bright-Line Rule: It’s Always a Stay Violation if Debtor Is a Defendant
Second Circuit exercises ‘hypothetical’ appellate jurisdiction when finality is murky.
Court:
District Judge Effectively Bars a Short Sale Without Paying the Homestead Exemption
Reversing, a Long Island district judge credits value to a homeowner’s ability to delay foreclosure, taking a position contrary to a recent decision from a Ninth Circuit B.A.P.
Four Circuits Now Permit Fraudulent Transfer Attacks on Real Estate Tax Foreclosures
Circuit courts are split 4/3 on their interpretation of Supreme Court precedent holding that regularly conducted mortgage foreclosures are immune from fraudulent transfer attack.
Court:
Chapter 13 Creditors Get Exempt Assets that Produce Income
Exempt assets are included in the calculation of chapter 13 projected disposable income to the extent that the exempt asset produces income.