Pennsylvania

Pennsylvania District Judge Holds that FLSA Suit Is Not Halted by Automatic Stay

Splitting with the Sixth Circuit, Pittsburgh district judge rules that a FLSA suit falls within the ‘police and regulatory’ exception to the automatic stay.

Bankruptcy Judge Won’t Rule on the Constitutionality of Pandemic Regulations

Finding a proper exercise of regulatory power isn’t required to invoke the exception to the automatic stay.

Exercise Caution in Electing Remedies Against Someone Who May File Bankruptcy

Sometimes, being too aggressive backfires when the defendant files bankruptcy.

A Pennsylvania Gambling License Isn’t ‘Property’ Recoverable as a Fraudulent Transfer

Sovereign immunity required dismissal of a suit to recover the value of a gambling license because the suit wasn’t an ancillary exercise of the bankruptcy court’s in rem jurisdiction over a res.

Sovereign Immunity Doesn’t Insulate States from Lien Stripping, District Court Says

States have no sovereign immunity defense to lien stripping, even if the state has not filed a proof of claim.

A Nonparty’s Bankruptcy Isn’t Providing Ground for Removal to Federal Court

The right of indemnification by a bankrupt isn’t establishing ‘related to’ jurisdiction in federal court.

‘Earmarking’ Only Applies When a Debtor Receives a Loan from a Third Party

Money taken from a debtor’s own retirement account to pay a creditor does not qualify for the earmarking defense, Chief Judge Fehling says.

Sovereign Immunity Doesn’t Insulate States from Lien Stripping

For three independent reasons, Judge Taddonio rules that states are not immune from stripping down or stripping off tax liens.

Another Example: Student Loans Are Virtually Impossible to Discharge

District court second-guesses the sufficiency of evidence that the bankruptcy court found sufficient.