3rd Circuit

Delaware Judge Approves ‘Uptier’ Financing that Involuntarily Subordinated Debt

Bankruptcy Judge Craig T. Goldblatt declined to interpret an indenture’s ratable treatment clause as anti-subordination in disguise.

Delaware Supreme Court: No ‘Insolvency Exception’ for Asset Sales

Delaware corporations must have shareholder approval to sell all or substantially all assets outside of bankruptcy.

Judge Walrath Describes Due Diligence to Plead After the Amendment to Section 547(b)

The amendment to Section 547(b) does not require a preference complaint to explain why the defendant doesn’t have affirmative defenses, Judge Walrath says.

Judge Ambro Explains the Primacy of Section 327(a) over State Ethics Rules

Absent an ‘actual conflict,’ disqualification is not automatic, the Third Circuit says.
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Two Circuits Now Give Priority Status to Obamacare’s Individual Mandate Penalty

The Affordable Care Act’s ‘individual mandate’ was a tax measured by income, thus giving the IRS a priority tax claim.
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Bankruptcy Courts Have ‘Core’ Power to Order Fee Disgorgement, Third Circuit Says

Being seen at bar events in the company of those who appear in court doesn’t show judicial bias.
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Delaware District Judge Says: Don’t Use ‘Nunc Pro Tunc’ When You Mean ‘Retroactive’

Submitting a retention order with the wrong word resulted in a pivotal issue on appeal.

To Be a Section 544(b)(1) Predicate Claim for a 10-Year Lookback, the Claim Must Be Filed

A claim of the IRS can provide a 10-year lookback for avoidance actions, but the claim must have been filed.

Johnson & Johnson Survives a Motion to Dismiss that Alleged a Bad Faith Filing

Judge in New Jersey explains why chapter 11 is the best alternative for a large company to deal with mass torts.

Special Counsel with an Actual Conflict Faces Disgorgement of Fees in Delaware

Judge Sontchi set aside a prior order preventing the trustee from controlling litigation brought in the trustee’s name.

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