Another Court Holds that a Debtor Has a Property Interest in Contracts, Not Customers
Once the debtor loses the right to do business, taking customers for no consideration isn’t a fraudulent transfer, Judge Isgur holds.
To Be Nondischargeable, Debtor Must Have Violated Securities Laws, Another Judge Says
Texas judge rules in favor of the debtor on an issue similar to the question coming before the Supreme Court in Bartenwerfer.
Being Tossed Off a Committee Doesn’t Confer Appellate Standing, District Judge Says
Being removed from an official committee doesn’t harm the former member’s pecuniary interests and therefore doesn’t confer appellate standing.
Fifth Circuit Permits Gatekeeping to Serve the Function of Third-Party Releases
Adhering to the categorial prohibition of nondebtor third-party releases, the Fifth Circuit now allows a workaround to protect principal participants in chapter 11 cases.
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Fifth Circuit Holds that Surety Bonds Are Not Executory Contracts
The Fifth Circuit said in dicta that courts might apply the ‘functional approach’ rather than the Countryman test in deciding whether a triangular contract is executory.
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Bankruptcy Removal Isn’t the Same as General Removal, Fifth Circuit Explains
Fifth Circuit finds ‘related to’ jurisdiction in a lawsuit between two third parties who were neither debtors nor creditors.
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A Judgment for Punitive Damages Might Not Support Nondischargeability Automatically
Jury instructions and a special verdict form can determine whether issue preclusion automatically results in nondischargeability.
FERC Strikes Out a Third Time in the Fifth Circuit on Rejecting Power Contracts
FERC tried the patience of the Fifth Circuit by arguing again that the agency can bar a chapter 11 debtor from rejecting a filed-rate contract.
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The Right to Credit Bid Does Not Preclude Charging a Buyer’s Premium at Auction
When a secured lender credit bids, a buyer’s premium can be a legitimate surcharge against the lender’s collateral, Judge Rodriguez says.
Parties May Not Consent for Magistrate Judge to Decide a Bankruptcy Appeal
Fifth Circuit holds that 28 U.S.C. § 158 requires district judges or BAPs to decide bankruptcy appeals.
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