Courts Interpret Brunner Too Harshly, Bankruptcy Judge Cecelia Morris Says
A debtor with a law degree but only $37,500 in gross annual income was permitted to discharge more than $220,000 in student loans.
Second Circuit Again Applies the ‘Safe Harbor’ to Protect Selling Shareholders in an LBO
The Supreme Court’s Merit Management opinion fails to persuade the Second Circuit to change the result in Tribune.
Court:
Holding a Contempt Hearing May Be Ok, but the Remedy Might Violate Automatic Stay
A contempt hearing fell under the ‘criminal’ exception to the automatic stay, but jailing a debtor to coerce payment of a prepetition debt violated the stay, Judge Grossman ruled.
Mortgage Servicer Blew the Statute of Limitations, Judge Grossman Says
New York intermediate appellate courts are split on critical questions about the ‘start date’ for the statute of limitations on mortgage foreclosure.
Rifle Held Exempt as Household Goods in Georgia but Not in Connecticut
Claiming a firearm is owned for defense of the household raises the odds that the gun will be exempt as household goods.
Court:
Second Circuit Explains when Default Judgments Qualify for Issue Preclusion
Discovery abuse in a prior lawsuit can result in nondischargeability in a later bankruptcy.
Court:
Immediately Withdrawing the Reference Is ‘Absurd,’ District Judge Says
Defendants in lawsuits by Lehman Brothers are stuck in bankruptcy court until the cases are ready for a jury trial.
Losing Competitive Advantage Doesn’t Justify Redacting a Settlement Agreement
Judge Garrity in New York adopts a narrow view of ‘commercial information’ that may be redacted in a court filing.
Second Circuit Defines a Prohibited Double Recovery on Fraudulent Transfers
There is no prohibited double recovery from multiple defendants, the appeals courts says, until the trustee has recovered cash equaling the value of the fraudulently transferred property.
Court:
Trustee Allowed to Sue for Fraudulent Transfer on an Unenforceable Contract
Long Island’s Judge Grossman follows the Third Circuit by finding limitations on the Rooker-Feldman doctrine.