2nd Circuit

Second Circuit Expands Standing to Ensure Integrity of the Bankruptcy Court

The U.S. Trustee is not the better or the only party to uphold the integrity of the bankruptcy court, the Second Circuit holds.

Purdue District Judge Authorizes Appeal to the Second Circuit on Non-Debtor Releases

The district judge who overturned confirmation of Purdue’s chapter 11 plan is requiring the debtor to expedite the appeal to the Second Circuit.

Creating a Split, Second Circuit Says that Section 363(m) Is Jurisdictional

The new decision from the Second Circuit is based on prior opinions where the appeals court said there was no “jurisdiction” when it would have been correct to say there was no “power.”

Third-Party, Non-Consensual Releases Nixed in the Purdue ‘Opioid’ Reorganization

Manhattan district judge vacated confirmation of Purdue Pharma’s chapter 11 plan because the court had no statutory power to impose non-consensual releases of creditors’ direct claims against non-debtors.

Chapter 15 Permits Discovery to Lay Groundwork for a Lawsuit, New York Judge Says

Judge Garrity wasn’t required to rule on whether Bankruptcy Rule 2004 applies in chapter 15 cases.

Another District Judge Rules that Tax Foreclosures Can Be Fraudulent Transfers

The circuits are split on whether the Supreme Court’s BFP opinion can be extended to bar fraudulent transfer attacks on in rem real estate tax foreclosures.

A Purdue Suit Against Insurance Carriers Stays in Bankruptcy Court, for Now

Insurance coverage disputes are ‘routinely resolved in summary judgment,’ counseling against immediate withdrawal of the reference of a non-core lawsuit, district judge says.

On Student Loan Discharge, District Judge Requires Responses to Unasserted Defenses

New York district judge requires a student loan debtor to prove the reasonableness of living expenses when the lender never objected.

Estate Claims Can’t Be Sold for Trivial Recovery by Unsecured Creditors

Had the purchaser of estate claims offered to waive its own unsecured claim, the sale might have been approved.

Texas Judge Disagrees with Second Circuit on Sanctions for Violating Rule 3002.1

Bankruptcy Judge Eduardo Rodriguez explained why the Second Circuit was wrong in ruling that violators of Rule 3002.1 are only liable for compensatory damages.