The New Jersey Law Journal recently published an article discussing the breadth and extent of bankruptcy court jurisdiction as applied by the Third Circuit Court of Appeals. The article discusses three cases from last year: (i) Phila. Entm’t & Dev. Partners v. Dep’t of Revenue, 879 F.3d 492 (3d Cir. 2018), (ii) IMMC Corp. v.
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Warning: Third-Party Services and Access to Documents in CM/ECF
Federal courts across the country have issued a warning regarding the use of third-party services. This warning is applicable to all CM/ECF filers:
CM/ECF filers should be aware of the potential to inadvertently share restricted documents when using third-party services or software. Sharing CM/ECF filing credentials and PACER account credentials with a third-party service provider…
Sixth Circuit BAP: Order Denying Motion to Dismiss a Bankruptcy Case is Not a Final Order
The Bankruptcy Appellate Panel of the Sixth Circuit recently held that a post-confirmation motion to dismiss a bankruptcy case is not a final order that is immediately appealable.
In this case, the appellants filed a judgment lien against debtor, who subsequently filed for Chapter 13 bankruptcy. Debtor sought to avoid the judgment lien, and appellants…
Northern District of Texas Holds EEOC Title VII Enforcement Action Falls Within Exception to the Automatic Stay
In a recent opinion, the U.S. District Court for the Northern District of Texas held that an Equal Employment Opportunity Commission (“EEOC”) action brought against an employer for alleged violations of Title VII of the Civil Rights Act of 1964 is excepted from the automatic stay by 11 U.S.C.§ 362(b)(4) (police and regulatory power…
Beware of Broad Release Language in Confirmation Plan
In a recent an opinion, the Delaware Bankruptcy Court enforced the broad release language in a confirmation plan to release certain entities that were never intended to be released.
The debtors and the creditors’ committee engaged in hard-fought negotiations, and the committee supported confirmation of the plan in large part because the settlement trust, to…
Fifth Circuit: Debtor Judicially Estopped for Failure to Disclose Asset
In a recent opinion, the Fifth Circuit affirmed a district court ruling that found that a debtor was judicially estopped from claiming a stay violation by a mortgagee, who foreclosed on the debtor’s property, due to the debtor’s failure to disclose the affected property or his putative claims in his bankruptcy.
The Fifth Circuit explained…
Bankruptcy Court Dismisses Breach of Duty of Fair Representation and Collusion Claims
Kerri Gallagher writes:
The Bankruptcy Court for the Southern District of New York recently dismissed claims in an adversary proceeding commenced by pilots against the pilots’ union and an airline in connection with the airlines’ rejection of an old collective bargaining agreement (“Old CBA”), and negotiation of a new collective bargaining agreement (“New CBA”) that…
Mockery of Judicial System Determinations: Eleventh Circuit Confirms “Facts and Circumstances” Test
Kerri Gallagher writes:
The Eleventh Circuit recently held that when determining whether a plaintiff’s inconsistent statements are intended to make a mockery of the judicial system, a court must evaluate all facts and circumstances of the case rather than simply make an inference. See Slater v. U.S. Steel Corp., No. 12 15548 (11th Cir.…
Fifth Circuit Reviews Approval of Adversary Proceeding Settlement for Abuse of Discretion
Anahita Anvari writes:
In In re Beach v. Beach, the Fifth Circuit elaborated on its standard of review for adversary litigation settlements. No. 17-10481 (5th Cir. May 16, 2018).
In this case, Debtor, a Dallas oil-and-gas businessman, formed a partnership to drill oil with a New York investment firm (“Creditor”). Following a dispute between…
Bankruptcy Court Extends Personal Jurisdiction to Foreign Online Customer in Fraudulent Transfer Litigation
David Doty writes:
The U.S. Bankruptcy Court for the Northern District of California recently held that a Hong Kong resident who had made online purchases of wine through a California retailer was subject to personal jurisdiction. See Kasolas v. Yau, Adv. Pr. No. 18-04012 (N.D. Cal. Bankr. May 11, 2018).
The defendant, a Hong…