Channeling ‘Asbestos’ Claims Is a Legitimate Use of Chapter 7, District Judge Says
Reversing the bankruptcy court, a district judge ruled that a company may file in chapter 7 even when there are no operations and no assets aside from insurance.
Court:
Caymans Recognized as the ‘COMI’ for a Property Company Operating in China
A country that was ineligible to host a nonmain foreign proceeding was nonetheless held to have the foreign main proceeding.
Second Circuit Bright-Line Rule: It’s Always a Stay Violation if Debtor Is a Defendant
Second Circuit exercises ‘hypothetical’ appellate jurisdiction when finality is murky.
Court:
District Judge Effectively Bars a Short Sale Without Paying the Homestead Exemption
Reversing, a Long Island district judge credits value to a homeowner’s ability to delay foreclosure, taking a position contrary to a recent decision from a Ninth Circuit B.A.P.
Four Circuits Now Permit Fraudulent Transfer Attacks on Real Estate Tax Foreclosures
Circuit courts are split 4/3 on their interpretation of Supreme Court precedent holding that regularly conducted mortgage foreclosures are immune from fraudulent transfer attack.
Court:
Chapter 13 Creditors Get Exempt Assets that Produce Income
Exempt assets are included in the calculation of chapter 13 projected disposable income to the extent that the exempt asset produces income.
Lender Defaulted on the Merits for ‘Prolonged, Extraordinary’ Discovery Violations
Despite contrary Second Circuit dicta, retiring Judge Robert Drain certified a nationwide class in a suit for violation of the discharge injunction.
Rochester Diocese Loses Stay Protection for Nondebtor Catholic Entities
After almost three years in chapter 11 without a consensual plan, Bankruptcy Judge Warren is allowing sexual abuse claimants to sue nondebtor parishes and schools.
Second Circuit Allows Appellate Attorneys’ Fees for Upholding a Contempt Citation
Finally, a circuit court cites Taggart to help a debtor enforce the discharge injunction.
Court:
An Initial ‘Recipient’ of a Fraudulent Transfer Isn’t Always Liable Under § 550(a)(1)
The Second Circuit says that an initial ‘recipient’ isn’t automatically an initial ‘transferee’ liable for an avoidable transfer under Section 550(a)(1).
Court: