‘Accrual Test’ Again Survives to Say Whether the Debtor or the Estate Owns a Claim
There are two tests again for the existence of a claim, one test for claims against the debtor and another for claims by the debtor.
Bankruptcy Courts Don’t Agree on What’s a ‘Consensual’ Nondebtor Release
Bankruptcy Judge Paul Baisier of Atlanta disagreed with Bankruptcy Judge Craig Goldblatt of Delaware about requiring creditors to vote before they are saddled with nondebtor releases in chapter 11 plans.
Judicial Immunity Can Protect a Trustee when Barton Doesn’t Apply, Circuit Says
When a trustee mistakenly seizes a nondebtor’s property, the Barton doctrine by itself doesn’t protect the trustee, but judicial immunity does.
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Substantive Consolidation May Proceed by Motion, District Judge Says
A district court in Florida upheld Bankruptcy Judge Peter Russin in holding that substantive consolidation does not require an adversary proceeding, a summons or a complaint.
Another Bankruptcy Judge Decided that Sub V Classes with No Votes Aren’t Accepting
Bankruptcy Judge Paul Bonapfel differed with two judges in Houston by holding that a nonaccepting class in Subchapter V means that a plan must be confirmed in cramdown.
Courts Are Now Split on Ignoring Nonvoting Classes in Subchapter V Plans
Disagreeing with two bankruptcy courts in Houston, Miami’s Judge Isicoff holds that a Sub V plan with a nonvoting class can be confirmed only as a nonconsensual plan.
A Claim Is Unliquidated if It Requires the Exercise of Judgment or Discretion
Tort claims are usually unliquidated, but a contract claim is liquidated if it’s precisely determinable by agreement or operation of law, Judge Lori Vaughan says.
Circuits Split: Does Anti-Modification Apply to Any Property with a Principal Residence?
Eleventh Circuit seems to hold that a mortgage on any property with a principal residence can’t be modified even if the principal use of the property is commercial.
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After 180 Days, Confirmation Can’t Be Vacated, Even for the Best of Reasons
Federal Rule 60(b) can’t ‘end run’ Section 1144, Bankruptcy Judge Kimball holds.
The Eleventh Circuit Rails Against ‘Prudential Standing’
Three Eleventh Circuit Judges would have their appeals court sit en banc to stop dismissing for lack of standing when dismissal should be resulting from failure to state a claim under state law.
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