1st Circuit

Taggart Didn’t Let Corporate Employees Off the Hook for a Stay Violation

Tortious or fraudulent conduct needn’t be shown to hold a corporate employee liable for violating the automatic stay.

Puerto Rico Bondholders Lose Another Appeal in the First Circuit

The First Circuit shows no inclination to allow creditors to bust out of the PROMESA restructuring of Puerto Rico’s debt.
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First Circuit Reverses the BAP for Fact-Finding on Appeal

First Circuit requires detailed fact-finding by the bankruptcy court on the credibility of witnesses and the elements of nondischargeability for false representations.
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Stay Violation Order Is Final Even Before Attorneys’ Fees Are Awarded, Circuit Says

First Circuit rules that an order finding a stay violation must be appealed before the bankruptcy court grants an award of attorneys’ fees.
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First Circuit’s Traditional Approach to Section 552 Cuts Off Bondholders’ Liens

Employer contributions to Puerto Rico’s retirement system did not qualify as ‘special revenues,’ with the result that bondholders’ liens were cut off on the filing date.
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A Prior BAP Opinion Is Virtually Binding on a Later BAP Panel

A later First Circuit BAP panel should follow BAP authority unless the prior opinion seems “dead wrong.”
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An Inherited IRA Can Be Exempt Under State Law When It’s Not in Section 522(b)(3)(C)

A divided Rhode Island Supreme Court ruled that an inherited IRA, not exempt under federal law, is exempt under state law.

District Court Upholds Constitutionality of San Juan Debt Adjustment Under PROMESA

The city of San Juan unsuccessfully argued that the PROMESA Oversight Board has no fiscal control over municipalities in Puerto Rico.

First Circuit Explains How to Avoid Liability for an Underfunded Pension Plan

To avoid liability for an underfunded pension plan, the First Circuit describes a structure for investors to employ when buying a sick company
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A Fugitive’s Civil Bankruptcy Appeal Can Be Dismissed, Sometimes

The ‘fugitive disentitlement doctrine’ does not allow a federal court to dismiss an appeal because of a fugitive’s contempt of a state court order, the First Circuit rules.
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