Texas Southern District

On an ‘Involuntary,’ Denial of Summary Judgment Doesn’t Mean the Claim Is Disputed

The Iqbal and Twombly standards don’t apply to involuntary petitioners who are required to use Official Form 105.

Liquidating a Defunct Corporation Qualifies for the SBRA, Judge Lopez Says

Increasingly, courts are allowing defunct corporations to proceed under the SBRA while individual owners of defunct businesses aren’t being treated as small business debtors in chapter 11.

Once Repudiated, a Contract Is No Longer Executory

Courts disagree on whether a repudiated contract remains executory.

Judge Isgur Knocks Down a Special Counsel’s Fees for ‘Unprofessional’ Conduct

Incivility may be acceptable in matrimonial matters, but not when the lawyer represents a debtor.

Medicaid Fraud Suit in State Court Isn’t Subject to the Automatic Stay

Even though the debtor was no longer in business, a Medicaid fraud suit was not subject to the automatic stay and thus served as a deterrent to others.

Court Records Destroyed, a Finding of Proper Notice Presumes Notice by Publication

The finding of proper notice in a confirmation order satisfies the debtor’s burden of proving notice by publication to creditors with future claims, even in the absence of a trust for future creditors, Houston judge says.

Dissolved Corporation May Not File to Reorganize in Chapter 11, Only to Liquidate

Dissolved by forfeit, a corporation cannot reinstate a charter and may resort to bankruptcy only to liquidate, Judge Eduardo Rodriguez says.

Bankruptcy Judges Disagree About Abatement of Rent During the Pandemic

Neither the Bankruptcy Code nor state law permits reducing rent when government regulations restrict a debtor’s ability to generate income, Judge Isgur says.

Judge Isgur Sides with the Third Circuit and Allows Makewhole Premiums

Creditors are entitled to ‘default interest’ when the debtor is solvent.

Houston Judge Rejects Tenth Circuit Opinion Immunizing Subsequent Transferees

Proceeds from fraudulently transferred property can be recovered from subsequent transferees, Judge Rodriguez says, differing with the Tenth Circuit’s Generation Resources opinion.

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