5th Circuit

Payments Were Preferences Even Though They Were Made with Insurance Proceeds

A preference opinion from Houston counsels creditors to be cautious when they are expecting payment from insurance.

Government Bar Date Applies to DOE Loans Even When the Servicer Is Private

As long as the student loan is owing to the government, the Fifth Circuit holds that the government bar date applies even when the servicer is a private company.

Fifth Circuit Adheres to ‘Person Aggrieved’ for Appellate Standing in Bankruptcy

Bankruptcy courts can have subject matter jurisdiction to approve settlements between nondebtors.

A Suit to Impose a Prepetition Policy Didn’t Violate the Automatic Stay, District Judge Says

Seeking attorneys’ fees from the debtor did not by itself make a postpetition lawsuit subject to the automatic stay.

Fifth Circuit Approves Breakup Fees as ‘Admin’ Expenses or Costs of Sale

The Fifth Circuit avoided deciding whether approval of breakup fees is judged by the more lenient Section 363(b) or the more exacting standard for administrative expenses under Section 503(b).

Fifth Circuit Reaffirms ‘Person Aggrieved’ as the Standard for Appellate Standing

The Fifth Circuit declined to follow the Ninth Circuit in questioning ‘person aggrieved’ as being inconsistent with recent Supreme Court authority.

Debt for Selling a Gun Used in a Mass Killing Was Dischargeable

Congress might want to consider closing a dischargeability loophole when it comes to injuries indirectly resulting from commission of a felony.

No Bankruptcy Jurisdiction for a Settlement that Contradicts a Chapter 11 Plan

Fifth Circuit finds no bankruptcy jurisdiction to approve a settlement after confirmation that contradicts the chapter 11 plan.

State Exemption for Life Insurance Policies Continues to Be Under Attack in Texas

Defeated three times, a chapter 7 trustee is appealing to the Fifth Circuit to end the exemption for whole-life policies in Texas.

Courts May Bypass Equitable Mootness to Rule on the Merits, Fifth Circuit Says

Even if an appeal is equitably moot, the appellate court nonetheless has appellate jurisdiction. Equitable mootness is prudential, not jurisdictional.