6th Circuit

Circuit Split May Deepen on Assuming a Franchise over the Franchisor’s Objection

Ohio’s Bankruptcy Judge Nami Khorrami sides with the minority on a circuit split that the Supreme Court ducked in 2009.

Receivership Didn’t Prevent an LLC’s Manager from Filing Bankruptcy for the LLC

Judge Randal Mashburn described what a state court must do in appointing a receiver that would prevent an LLC’s manager from filing a bankruptcy petition.

Noncompete and Confidentiality Agreements Can’t Be Rejected as Executory Contracts

If a breach results only in a right to equitable relief, there is no ‘claim’ and thus no executory contract.

An ATV Is an Exempt ‘Motor Vehicle’ in Ohio, Judge Whipple Says

Judge Mary Ann Whipple declined to engraft a ‘use’ restriction onto the broad meaning of ‘motor vehicle’ in Ohio.

The ‘Ordinary Course’ Defense Is Satisfied by Showing One of the Two Tests, Not Both

Following the 2005 amendments, satisfying either the subject test or the objective test will prove the ‘ordinary course’ defense to a preference, Judge Hoffman says.

Evidence of Intent to ‘Hinder’ Wasn’t Sufficient to Deny Discharge, District Judge Says

The bankruptcy court’s inference of intent to hinder the trustee wasn’t supported by the evidence, the district judge says in reversing a denial discharge.

A Bankrupt Defendant Complicates Filing an Appeal Against Everyone Else

The Sixth Circuit explains how to appeal when the automatic stay prevents an order in a multi-defendant suit from becoming a final order.

A Stipulated Dismissal Won’t Serve as the Basis for Res Judicata, a/k/a Claim Preclusion

A stipulated dismissal, even with prejudice, doesn’t mean that the claims were ‘actually litigated’ for the purpose of claim preclusion, the Sixth Circuit says.

Dispositions of Marital Property Aren’t Always Beyond the Avoiding Powers

A division of marital property on consent to someone other than a spouse might be a fraudulent transfer.

Courts Are Split on Including a Nonfiling Spouse’s Social Security Benefits

Judge Beth Buchanan decided that the ‘totality of the circumstances’ test for ‘abuse’ doesn’t permit disregarding the exemption for Social Security benefits.