3rd Circuit

Failure to Exercise a Purchase Option Is Not a Transfer, Third Circuit Says

The failure to convert a contingent interest into ownership is not a transfer that could be avoided as a fraudulent transfer.

Arguments Both Ways, Power to De-Designate from Subchapter V Left Undecided

Although deposed as debtor in possession, the Subchapter V debtor retains the sole power to file a chapter 11 plan.

Third Circuit Importuned to Rule on Survival of the Solvent-Debtor Exception

Sticking to her guns, Bankruptcy Judge Mary Walrath rules that the solvent-debtor exception was abrogated by the adoption of the Bankruptcy Code, but certifies a direct appeal to the Court of Appeals.

A Two-Year Delay in Filing a Retention Application Resulted in Denial of Fees

Pittsburgh Bankruptcy Judge Gregory Taddonio says that lawyers must search in PACER before signing up a new client.

Court Halts States’ Police and Regulatory Suits against Non-Debtor Johnson & Johnson

In spreading the automatic stay, the bankruptcy court again employed the traditional analysis without recognition that the non-debtors are solvent.

Marrying an Adversary Doesn’t Mean Disqualification, Third Circuit Says

Following the Model Rules and erecting ethical screens allows adversary lawyers to date and marry.

Collateral Estoppel Can Bar Use of Federal Rule 45 to Quash a Subpoena, Circuit Says

Third Circuit says: You can object to a Rule 2004 discovery motion or move to quash a subpoena under Federal Rule 45, but not both.

Bankruptcy Courts Always Have Post-Confirmation Jurisdiction for ‘Core’ Matters

The Third Circuit opinion by Thomas Ambro explained that the ‘close nexus’ test does not apply when a post-conformation dispute is ‘core’ or entails enforcing a court order.

A ‘Notwithstanding’ Clause May Not Control a Specific Provision, District Judge Says

An appeal to the Third Circuit may tell us whether a ‘notwithstanding any other provision’ clause really means what it says.

Third Circuit Sets the Standard for Qualification of a Future Claimants’ Representative

A representative of future claimants must meet a higher standard than disinterestedness, the Third Circuit said, but technical conflicts may not be disqualifying.