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Delaware

Suit by Foreign Liquidators Was Remanded to State Court

Delaware district judge permits remand when the suit was subject to mandatory abstention.
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Delaware District Court Upholds Discharge of Environmental Fines in Chapter 11

Environmental fines are discharged in chapter 11 because they do not result from pecuniary loss.
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Fraudulent Transfer Damages Limited to Creditors’ Total Claims

Delaware’s Judge Owens won’t allow perpetrators of a fraudulent transfer to benefit from avoiding the transfer.
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Four-Year Statute of Limitations Can Stretch to at Least Seven Years, Judge Owens Says

The one-year discovery clause in UFTA allows a debtor or trustee to file an avoidance suit even if the ordinary four-year statute has elapsed.
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Stays Are Automatic from Denial of a Motion to Dismiss for Sovereign Immunity

Courts are divided on whether the district court loses jurisdiction to stay proceedings in bankruptcy court after the filing of a notice of appeal.
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Delaware Judge Upholds U.S. Trustee Fee Increase in Pending Cases

Parting with some other bankruptcy courts, Judge Walrath upholds the constitutionality of the major increase in U.S. Trustee fees that was imposed on pending cases in early 2018.
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Opting Out Won’t Justify Imposing Third-Party Releases, Delaware Judge Says

Saying she is in the minority in her district, a new Delaware judge ruled that allowing creditors to opt out won’t permit a plan to impose nonconsensual, third-party releases.
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Sanctions Imposed on a Law Firm Retained under a Fictitious Name

Although Florida permits practicing law under a fictitious name, the Bankruptcy Rules are more rigorous and require full disclosure, new Delaware judge says.
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Another Court Limits ‘Related To’ Jurisdiction Based on Indemnification Claims

W.R. Grace makes more law on channeling injunctions.
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Sometimes, a Claim Purchaser Can’t File a Claim, Delaware Judges Say

Judges Stark and Carey from Delaware distinguish between prohibiting the power and the right to assign a claim.
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