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3rd Circuit

Delaware District Court Doesn’t Want 2,400 Johnson & Johnson Talcum Powder Suits

The Pacor test for ‘related to’ jurisdiction isn’t so broad when it comes to indemnification agreements.
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The Debtor or Trustee Control the Privileges of an Independent Audit Committee

As his parting shot, Judge Carey requires turnover of almost everything in the files of professionals for an independent audit committee.
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Third Circuit Expands the Flexible Notion of ‘Finality’ on Bankruptcy Appeals

The Third Circuit’s new opinion on ‘finality’ will be cast in doubt depending on how the Supreme Court rules in Ritzen.
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Intercreditor Agreement Didn’t Apply to Plan Distributions, Third Circuit Holds

The Third Circuit wrote an important decision on distributing collateral under an intercreditor agreement, but it wasn’t precedential.
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A Nonparty’s Bankruptcy Isn’t Providing Ground for Removal to Federal Court

The right of indemnification by a bankrupt isn’t establishing ‘related to’ jurisdiction in federal court.

‘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.
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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.
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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.
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Delaware’s Judge Walrath Writes a Primer on Consignments

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