A Supreme Court Arbitration Opinion Could Disrupt Bankruptcies
Split 5/4, the Supreme Court rules that denial of a motion to compel arbitration automatically imposes a stay pending appeal.
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A Fourth Circuit Dissenter Opposes Mass-Tort Injunctions Protecting Non-Debtors
The Fourth Circuit majority upheld a preliminary injunction barring tort suits against a debtor’s nonbankrupt affiliates following a Texas divisional merger.
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Benchnotes August 2023
Journal Issue:
An Alter Ego Suit Doesn’t Violate the Discharge Injunction, BAP Says
At least where nondebtor releases are prohibited, and if Delaware law controls, a suit against an alter ego doesn’t violate the discharge injunction, the Ninth Circuit BAP says.
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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.
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.
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A Writ of Possession Doesn’t Terminate a Lease or Preclude Assumption
A landlord who terminates a lease isn’t entitled to a claim for future rent, at least in Florida, according to a district judge who affirmed Bankruptcy Judge Isicoff.
Failing to File a Claim Has Dire Consequences for a Secured Creditor
A secured lender who doesn’t file a claim doesn’t get paid by the chapter 13 plan and keeps its lien, but can’t reclaim the collateral during the life of the plan.
A Statement ‘For Informational Purposes’ Can Still Be a Stay Violation, BAP Says
A BAP strictly enforced the stay against a mortgage servicer who improperly listed a pre-petition debt in the portion of the monthly statement showing the next post-petition payment.
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