Consent to a Sale for Less than the Mortgage Debt Doesn’t Waive a Deficiency Claim
A secured lender need not obtain a deficiency judgment to retain a claim against an insurer for a shortfall in a bankruptcy sale, Bankruptcy Judge Grossman says.
It’s Ok to Avoid a Fraudulent Transfer Even if It Makes the Debtor Solvent, Circuit Says
The Second Circuit found discretion to avoid a constructively fraudulent transfer of exempt property that would have enabled the debtor to pay her creditors in full.
Court:
Foreign Sovereign Immunity Bars the Madoff Trustee from Recovering $20 Million
A district judge in New York reversed the bankruptcy court, which had held that a Kuwaiti public pension fund was not entitled to sovereign immunity for having engaged in commercial activity.
Bankruptcy Judge Stong Penned a Compendium About Eligibility for Subchapter V
Another judge holds that dealing with debt from a defunct business satisfies the eligibility requirement for Subchapter V.
Coercive Contempt Sanctions Upheld by Second Circuit Under Inherent Authority
Court’s inherent authority to sanction allows coercive contempt sanctions where rules and statutes are not up to the task.
Court:
A RICO Case Shows that Final Fee Allowances Don’t Confer Immunity
The RICO suit by Jay Alix Against McKinsey mostly survived a motion to dismiss.
Another Article III Judge Won’t Let Bankruptcy Stop Suits Against Nondebtors
The same day the Supreme Court decided to hear Purdue, a district judge on Long Island, N.Y., sent dozens of long-stayed sexual abuse cases back to state court where the debtor is not a named defendant.
Unlike Yesterday’s Story, a Two-Nondebtor Lawsuit Didn’t Have ‘Related To’ Jurisdiction
Unlike the case we reported on yesterday, there was no ‘related to’ jurisdiction because the outcome of a suit between two nondebtors wouldn’t have a direct effect on the bankrupt estate.
A Suit Between Two Nondebtors Might Have ‘Related To’ Jurisdiction
There could be ‘related to’ jurisdiction if a lawsuit between nondebtors might reduce claims against the bankrupt estate.
Second Circuit Nixes Nationwide Class Actions for Discharge Violations
The Second Circuit split with the First Circuit, which had permitted nationwide class actions because the discharge injunction is statutory.
Court: