New Jersey

District Court Disregards the Bankruptcy Court’s Authority over Post-Petition Fees

Seemingly in conflict with Section 329, a district court decided that a chapter 7 debtor’s attorneys could sue for post-petition fees, even though the firm never disclosed the fee arrangement as required by Section 329 and Rule 2016.

J&J’s ‘Baby Powder’ Chapter 11 Case Dismissed a Second Time: No Financial Distress

Bound by the Third Circuit’s first LTL decision, the bankruptcy court found that LTL’s rejiggered second filing suffered from the same defect: no immediate financial distress.

A Trustee Receives Statutory Commissions Unless the Amount Is ‘Offensive’

A trustee’s commissions can’t be based on a percentage of disbursements to the trustee’s own counsel, so says a New Jersey district judge.

Judge Kathryn Ferguson Evokes Bob Dylan with Regard to Changing Rules on Setoff

Times are a-changin’ when it comes to setoff against exempt assets.

Ultimate Success of the J&J Subsidiary’s Second ‘Talc’ Bankruptcy Is Up in the Air

The bankruptcy judge only gave nondebtor J&J companies a more limited stay in the second LTL chapter 11 case.

Court Halts States’ Police and Regulatory Suits against Non-Debtor Johnson & Johnson

In spreading the automatic stay, the bankruptcy court again employed the traditional analysis without recognition that the non-debtors are solvent.

Johnson & Johnson Survives a Motion to Dismiss that Alleged a Bad Faith Filing

Judge in New Jersey explains why chapter 11 is the best alternative for a large company to deal with mass torts.

Second J&J Talc Committee (Temporarily?) Disbanded

Decisions by the U.S. Trustee are subject to judicial review, Judge Kaplan says.

May Accountants Limit Liability for Professional Malpractice? Stay Tuned

New Jersey judge says that professionals may not be able to limit liability when malpractice is more than mere negligence.

Chapter 13 Debtor Keeps a Whopping Increase in the Value of a Home

On a question where the courts are split, a New Jersey bankruptcy judge allowed the chapter 13 debtor to retain a $100,000 increase in value when he sold his home.