Is Taggart just a defense that can be waived, or must a debtor plead and prove ‘no objectively reasonable basis’ in a motion for contempt of discharge?
Eventually, the Supreme Court will decide whether bankruptcy is a unique exception to the general rule that arbitration agreements are rigorously enforced.
Aligning with the Third Circuit, the Ninth Circuit says that lower courts were reading its prior decisions too broadly.
Tortious or fraudulent conduct needn’t be shown to hold a corporate employee liable for violating the automatic stay.
Discharge was violated, but sanctions are likely out of reach.
The Ninth Circuit may be backing off from Ybarra, a case that waives discharge for attorneys’ fees if the debtor ‘returns to the fray.’
Appeals court had sympathy for the debtor by disallowing part but not all of a judgment for receipt of a fraudulent transfer with ‘actual intent.’
Appeals court says that using a trust for future asbestos claims rather than a bar order would be cheaper and avoid unnecessary litigation.