Another New York District Judge Is Hostile to Nondebtor, Third-Party Releases
At the risk of committing error, a district judge in New York reads a third-party release to cover only derivative claims, not direct claims that a creditor may have against a nondebtor.
Rule 11 Sanctions Coming for Madoff Customers Refusing to Give Up ‘Fictitious Profits’
Two district judges are becoming incensed by ‘net winners’ in the Madoff Ponzi scheme who continue litigating and losing on the same issues.
Ordinary Excuses Won’t Justify Plan-Filing Delays in Subchapter V
A fight between creditors justifies granting a Subchapter V debtor more time to file a plan, Judge Lane says.
Chapter 15 Permits Discovery to Lay Groundwork for a Lawsuit, New York Judge Says
Judge Garrity wasn’t required to rule on whether Bankruptcy Rule 2004 applies in chapter 15 cases.
A Purdue Suit Against Insurance Carriers Stays in Bankruptcy Court, for Now
Insurance coverage disputes are ‘routinely resolved in summary judgment,’ counseling against immediate withdrawal of the reference of a non-core lawsuit, district judge says.
On Student Loan Discharge, District Judge Requires Responses to Unasserted Defenses
New York district judge requires a student loan debtor to prove the reasonableness of living expenses when the lender never objected.
Texas Judge Disagrees with Second Circuit on Sanctions for Violating Rule 3002.1
Bankruptcy Judge Eduardo Rodriguez explained why the Second Circuit was wrong in ruling that violators of Rule 3002.1 are only liable for compensatory damages.
Affirmance Shows that Merit Management Has Been Gutted in the Second Circuit
Properly structuring a leveraged refinancing in the Second Circuit can avoid attack as a fraudulent transfer despite the Supreme Court’s effort at narrowing the ‘safe harbor.’
Civil Penalties for Defrauding Consumers Weren’t Discharged Under Section 1141(d)(6)(A)
Reversing the bankruptcy court, a district judge in New York held that a civil penalty wasn’t discharged even though the fraud wasn’t committed against the government.
District Judge Rakoff Explains Why the Debtor Alone May Assert a Cure Claim
A creditor can’t assert a cure claim, even though Section 365(b) doesn’t give the counterparty the sole right to demand a cure on assumption of an executory contract.