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:
J&J’s ‘Baby Powder’ Chapter 11 Case Dismissed a Second Time: No Financial Distress
Bound by the Third Circuit’s first LTL decision, the bankruptcy court found that LTL’s rejiggered second filing suffered from the same defect: no immediate financial distress.
Court:
Lack of Creditor Opposition Isn’t Grounds for Extending an Expiring Automatic Stay
A repeat filer in chapter 13 must show ‘clear and convincing evidence’ of improved financial condition to warrant an extension of the automatic stay under Section 362(c)(3)(B), Chief Judge Taddonio says.
A Bankruptcy Petition Automatically Stays the Filing of an Appeal or a Cross Appeal
When the debtor files bankruptcy before the time has elapsed for a creditor to file a cross appeal, the cross appeal is deemed timely when filed within 30 days after the stay terminated, the Tenth Circuit held.
Court:
A Supreme Court Arbitration Opinion Could Disrupt Bankruptcies
Split 5/4, the Supreme Court rules that denial of a motion to compel arbitration automatically imposes a stay pending appeal.
Court:
A Fourth Circuit Dissenter Opposes Mass-Tort Injunctions Protecting Non-Debtors
The Fourth Circuit majority upheld a preliminary injunction barring tort suits against a debtor’s nonbankrupt affiliates following a Texas divisional merger.
Court:
Benchnotes August 2023
Journal Issue:
An Alter Ego Suit Doesn’t Violate the Discharge Injunction, BAP Says
At least where nondebtor releases are prohibited, and if Delaware law controls, a suit against an alter ego doesn’t violate the discharge injunction, the Ninth Circuit BAP says.
Court: