3rd Circuit

Horizontal ‘Gifting’ Approved in Mallinckrodt’s Confirmed Chapter 11 Plan

Mallinckrodt’s nondebtor releases didn’t have the defects that infected Purdue and Patterson.

Dependence on Parental Financial Assistance Meant Student Loans Were Dischargeable

The opinion by Judge Silverstein contains numerous sound bites for judges and debtors aiming to discharge student loans owed by individuals living in desperate circumstances.

Second J&J Talc Committee (Temporarily?) Disbanded

Decisions by the U.S. Trustee are subject to judicial review, Judge Kaplan says.

Opinion Finding Fraud Shows the Dangers in an Agreement to Finance Litigation

Chapter 7 trustee was precluded from terminating a lawsuit because a secured lender had been given the right to settle.

May Accountants Limit Liability for Professional Malpractice? Stay Tuned

New Jersey judge says that professionals may not be able to limit liability when malpractice is more than mere negligence.

Delaware Judge Issues Comprehensive Opinion on Makewholes and Unmatured Interest

Split grows on allowance of makewholes and what constitutes disallowed, unmatured interest.

Owner of a Long-Defunct Business Didn’t Qualify for Subchapter V

Being an ordinary employee didn’t mean that the debtor was engaged in business to qualify for Subchapter V.

Delaware Bankruptcy Judge Dismisses a Lawsuit for Forum Non Conveniens

Although a chapter 11 plan can bind parties throughout the world, Judge Sontchi wouldn’t let a foreign debtor sue a foreign bank in the Delaware bankruptcy court over a transaction that occurred in England.

Bar Date Notice by Email Is Insufficient, Delaware’s Judge Goldblatt Says

Notice by email may satisfy due process but doesn’t comply with notice by ‘mail’ under Bankruptcy Rule 2002.

Refusing to Release an Attachment After Filing Is No Stay Violation Following Fulton

Pennsylvania’s Judge Conway hints that failure to stop proceedings after bankruptcy can be an automatic stay violation, even after Fulton.

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