3rd Circuit

Sometimes, a Claim Purchaser Can’t File a Claim, Delaware Judges Say

Judges Stark and Carey from Delaware distinguish between prohibiting the power and the right to assign a claim.

New Jersey Tax Foreclosures Can Be Preferences, Third Circuit Rules

Although a foreclosure sale can be immune from fraudulent transfer attack, a tax foreclosure not based on the value of the property can be a preference.

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.

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.

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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