California

A District Court Rules that the U.S. Trustee Fee Increase Isn’t Retroactive

California district judge sides with the dissenter in the Fifth Circuit in saying that the parallel systems of U.S. Trustees and Bankruptcy Administrators violates the Bankruptcy Clause of the Constitution.

Landlord Socked $606,000 for Opposing Lease Assumption

Fee-shifting clause in the lease entitled the debtor to recover $606,000 in attorneys’ fees from the landlord for opposing lease assumption.

Covid Eviction Moratoria Didn’t Apply in a Bankruptcy Case

Bankruptcy court evicted a debtor from his residence because he didn’t qualify for the Covid-19 moratoria.

Refusal to Arbitrate the Validity of a Security Interest Is Tersely Affirmed in California

Are the lower courts out of step with the Supreme Court when it comes to enforcement of arbitration of disputes in bankruptcy court?

Courts Are Split on the Interest Rate for Unsecured Creditors of a Solvent Debtor

California judge disagrees with a Texas judge and rules that creditors of a solvent debtor are not entitled to the higher state judgment rate or the higher contract rate.

Removing a Beneficiary of a Revocable Trust Isn’t a Fraudulent Transfer

An expectancy interest in a trust isn’t “property” to underlay a fraudulent transfer suit.

Jointly Owned Property Is Presumptively Community Property in California

Title doesn’t control: Jointly owned property is nonetheless community property in a dispute with a bankruptcy trustee, the California Supreme Court says.

‘Disposable Income’ Must Be Carefully Defined to Preserve the Debtor’s Discharge

Judge Christopher Klein parses the burdens of proof on conversion, dismissal and right to a discharge for an individual in chapter 11.

Exotic Aircraft Finance Defeats a Trustee on Recharacterization

Electing English law upheld, even though no one had any connection with the U.K.

California Judge Explains Why Acevedo Doesn’t Bar Retroactive Orders

Retroactive and nunc pro tunc orders aren’t the same thing, Judge Jaime says. Orders may be retroactive when the power is implied by statute.

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