Second Circuit Allows Sale of ‘General’ Claims Subject to a Creditor’s Disputed Lien
Second Circuit leaves open the question of whether a trustee can sell a ‘general’ or ‘derivative’ claim that’s subject to a valid lien held by a creditor.
Court:
Upstate New York Bankruptcy Judge Nixes an ‘Opt-Out’ Plan with Nondebtor Releases
After Purdue, bankruptcy judges are now split on whether mass-tort plans are permissible if creditors must opt out.
New York Court Holds that ‘Future’ Asbestos Claims Can Be Discharged Without a Trust
Professors disagree on whether latent asbestos claims can be discharged without a trust for future claimants.
Preserving Defensive Setoff Rights Doesn’t Require Filing a Claim, Judge Glenn Says
Defensive setoff rights are not discharged by chapter 11 confirmation, even when no proof of claim was filed.
Denial of a Debtor’s Motion to Dismiss a Petition Isn’t Appealable, Second Circuit Says
In practical effect, the Second Circuit’s opinion means that a chapter 7 debtor may never appeal denial of a motion to dismiss a petition.
Court:
Established Law Pointed Judge Lane Toward Dismissing Giuliani’s Chapter 11 Case
New York’s Judge Sean Lane saw no reason for forcing holders of a $148 million defamation judgment ‘to wait years’ for a ‘modest distribution.’
Misleading Ads to Poach a Debtor’s Customers Is No Stay Violation, Circuit Says
The Second Circuit gives competitors license to mount false advertising unless it’s ‘virtually certain’ to affect a debtor’s customer contracts or goodwill.
Court:
A Chapter 7 Case Raises Issues in Truck Insurance on Standing in Bankruptcy Cases
Judge Mastando in New York decided that a chapter 7 trustee has authority to put the debtor’s subsidiary voluntarily into bankruptcy.
MOAC Again: No Remedy for the Landlord Despite Beating Sears in the Supreme Court
On remand from the Supreme Court and the Second Circuit, the district court decides that the Mall of America landlord isn’t entitled to more than the bargain it made with Sears in 1991.
District Court Narrowly Reads a Nondebtor Release in a Sale-Approval Order
A potential bidder wasn’t barred from suing the successful bidder outside of bankruptcy court.