1st Circuit

Another Court Holds that PACA Trusts Do Not Give Rise to Nondischargeable Debts

Violating a PACA trust does not result in ‘defalcation while acting in a fiduciary capacity’ that makes a debt nondischargeable, Bankruptcy Judge Panos says, taking sides with the Eleventh Circuit.

Substantially Equivalent Value Not Required to Defeat Equitable Disgorgement

The standard for defeating equitable disgorgement is lower than the proof required to fend off receipt of a fraudulent transfer.
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College Tuition Made a Debtor Ineligible for Chapter 7

Chapter 7 can be inaccessible for a married debtor living in the same household with a nonfiling spouse who has substantial income.

First Circuit Describes How to Value an Interest in Entireties Property

The value of a debtor’s interest in entireties property isn’t necessarily 50% of the value of the entire property.
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First Circuit Says: PROMESA Fiscal Plans Can’t Be Challenged in Federal Court

Federal courts have no jurisdiction to review decisions by Puerto Rico’s Oversight Board regarding the reduction of pension benefits.
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First Circuit Writes a Treatise on the Elements of Judicial Estoppel

Disputed facts can defeat invocation of judicial estoppel on summary judgment.
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First Circuit BAP Limits the Student Loan ‘Borrower Defense’

The First Circuit BAP suggests that invocation of the borrower defense with regard to dischargeability of student loans requires exhaustion of administrative remedies in the Department of Education.
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First and Ninth Circuits Split on Discharge of Takings Clause Claims

Splitting with the Ninth Circuit, the First Circuit holds that claims under the Takings Clause cannot be discharged in a municipal bankruptcy.
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First Circuit Majority Says Sovereign Immunity Abrogated as to the Puerto Rico Oversight Board

Dissenter implies that the First Circuit should sit en banc and rule that the Oversight Board’s sovereign immunity was not waived
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Contingent Indemnification Brings an Automatic Stay in Chapter 9, First Circuit Says

First Circuit won’t allow artful pleading to avoid the automatic stay in municipal bankruptcies.
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