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3rd Circuit

‘Earmarking’ Only Applies When a Debtor Receives a Loan from a Third Party

Money taken from a debtor’s own retirement account to pay a creditor does not qualify for the earmarking defense, Chief Judge Fehling says.

Discretionary Bonuses Are Not Per Se Fraudulent Transfers

Discretionary bonuses by an insolvent employer are not automatically fraudulent transfers, Judge Silverstein says.

Creditors of LPs or LLCs Can’t Sue for Breach of Fiduciary Duty

Creditors lack standing in Delaware and other states for derivative liability suits against officers and managers of LPs and LLCs.

Bankruptcy Notice to a Creditor Represented by Counsel in State Court Is Adequate

Conversely, giving notice to a creditor’s state-court counsel may not be adequate, New Jersey judge says.

Delaware’s Judge Walrath Writes a Primer on Consignments

Perfecting a consignment is easy, but failing to do so is disastrous.

Sovereign Immunity Doesn’t Insulate States from Lien Stripping

For three independent reasons, Judge Taddonio rules that states are not immune from stripping down or stripping off tax liens.

Reading Stern Narrowly, Delaware Judge to Issue Final Order in Fraudulent Transfer Suit

Judge Sontchi declines to rule that 28 U.S.C. § 157 is unconstitutional by denominating fraudulent transfer suits as ‘core’ proceedings.

Third Circuit Strips Debt Buyers of Defenses Under the FDCPA

Hiring a collection agent will not insulate a debt buyer from liability under the FDCPA.

Third Circuit Pronounces a Damages Formula for Fraudulent Entireties Transfers

Third Circuit lauds Bankruptcy Judge Agresti for ‘prescient thinking.’

Barton Also Protects Asbestos Trusts, Delaware Judge Says

If a suit filed in violation of Barton ends up in bankruptcy court, must the judge still dismiss? The courts are split.


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