3rd Circuit

Triangular Setoff Barred (Again) in Delaware

A triangular setoff, valid under state law, is unenforceable in bankruptcy under Section 553(a).

New Jersey Judges Side with the Minority on Turnover of Repossessed Autos

Split deepens regarding failure to return a repossessed auto as an automatic stay violation.

Liquidators Conducting GOB Sales Are Not ‘Professionals’ Covered by Section 327

U.S. Trustee rebuffed in subjecting liquidators to retention as ‘professionals’ under Section 327.

District Court Finds Constitutional Power to Grant Releases in Confirmation Orders

Delaware district judge rules that the bankruptcy court has final adjudicatory power to include third-party releases in confirmation orders.

Third Circuit Upholds Revocation of $275 Million Breakup Fee

Third Circuit creates a high standard for revoking a vested contract right.
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Delaware District Judge Upholds Horizontal ‘Gifting’ in a Chapter 11 Plan

Narrow reading of ‘equitable mootness’ in Tribune is limited to cases involving a dispute between two classes.

A Plan Can Release Claims for Post-Confirmation Conduct, Third Circuit Says

Third Circuit leaves open the question of whether distributions to shareholders in chapter 11 must follow FINRA rules.
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Third Circuit Explores the Limits of Channeling Injunctions Protecting Insurers

Caution: Do not use heavy machinery. Reading this story may induce drowsiness.
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FDCPA Applies to Debt Collectors Even if They Own the Debt

Thomas Ambro on the Third Circuit answers a question the Supreme Court left open in <em>Henson v. Santander</em>.
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Punitive Damages under Section 303(i) Can’t Be Offset, Third Circuit Says

One involuntary petition dismissed in bankruptcy court has now spawned three important opinions at the circuit level.
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