6th Circuit

A Good Faith Objection to a Sale Cannot Be Raised the First Time on Appeal

The existence of a competing bidder does not put the buyer on notice of an ‘adverse interest’ to avoid dismissal for mootness under Section 363(m), the Sixth Circuit BAP says.
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District Courts Disagree on Enforcing an ‘Automatic Stay’ Protecting Nondebtors

A district judge in Ohio declined to sit as an appellate court by deciding whether a bankruptcy court in another state had properly ‘spread’ the automatic stay.

A Consensual Judgment Is a Judgment Lien Subject to Avoidance Under Section 522(f)

‘Obtained by’ legal proceedings, a consent judgment is still a judgment lien that can be avoided if it impairs an exemption.

A Magistrate Judge Refuses to Enforce an Order Staying Actions Against Nondebtors

A magistrate judge decided that a bankruptcy court’s order from another district halting suits against nondebtors was unenforceable because it was not an ‘injunction’ made under Section 105(a).

Aggressive Bankruptcy Planning Didn’t Result in the Loss of Discharge

Sixth Circuit held that preferring one creditor with a nondischargeable claim before bankruptcy isn’t intent to hinder, delay or defraud.
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A Bankruptcy Case on Rule 60(b) Could End Up in the Supreme Court Next Term

Deciding a bankruptcy appeal, the Sixth Circuit deepened an existing circuit split on time limitations for Rule 60(b)(4) motions.
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Circuit Split May Deepen on Assuming a Franchise over the Franchisor’s Objection

Ohio’s Bankruptcy Judge Nami Khorrami sides with the minority on a circuit split that the Supreme Court ducked in 2009.

Receivership Didn’t Prevent an LLC’s Manager from Filing Bankruptcy for the LLC

Judge Randal Mashburn described what a state court must do in appointing a receiver that would prevent an LLC’s manager from filing a bankruptcy petition.

Noncompete and Confidentiality Agreements Can’t Be Rejected as Executory Contracts

If a breach results only in a right to equitable relief, there is no ‘claim’ and thus no executory contract.

An ATV Is an Exempt ‘Motor Vehicle’ in Ohio, Judge Whipple Says

Judge Mary Ann Whipple declined to engraft a ‘use’ restriction onto the broad meaning of ‘motor vehicle’ in Ohio.

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