New York

Another Article III Judge Won’t Let Bankruptcy Stop Suits Against Nondebtors

The same day the Supreme Court decided to hear Purdue, a district judge on Long Island, N.Y., sent dozens of long-stayed sexual abuse cases back to state court where the debtor is not a named defendant.

Unlike Yesterday’s Story, a Two-Nondebtor Lawsuit Didn’t Have ‘Related To’ Jurisdiction

Unlike the case we reported on yesterday, there was no ‘related to’ jurisdiction because the outcome of a suit between two nondebtors wouldn’t have a direct effect on the bankrupt estate.

A Suit Between Two Nondebtors Might Have ‘Related To’ Jurisdiction

There could be ‘related to’ jurisdiction if a lawsuit between nondebtors might reduce claims against the bankrupt estate.

Default Rates Imposed Before Filing Must Be Cured to Assume a Loan Agreement

Monetary defaults, including default rates and fees, must be cured before a debtor may assume a loan agreement, New York’s Judge Bentley rules.

A Contract to Produce a TV Series Wasn’t a Personal Services Contract

Contracts with corporations aren’t likely to be personal services contracts.

Eligibility for Subchapter V Is Liberal, but Not Wide Open

Courts are split on whether the debt providing eligibility for Sub V must have arisen from a business that was active on the filing date.

Trustee Admonished for Filing Suit Reflecting a ‘Disturbing Lack of Judgment’

Providing an adult child with room and board in the family home is not a fraudulent transfer.

Lack of a Common Plan or Scheme Means It Isn’t Single Asset Real Estate

A two-story commercial condominium wasn’t ‘single asset real estate,’ Judge Mastando holds.

New York Court Holds: Claims for Electricity Don’t Get Priority Under Section 503(b)(9)

Courts are divided on whether electricity supplied within 20 days of bankruptcy gives rise to an administrative priority claim.

Section 546(g)'s Safe Harbor Doesn’t Apply in an Assignment for the Benefit of Creditors

A federal district judge in New York holds that the safe harbor in Section 546(g) doesn’t preempt state fraudulent transfer laws.

Pages