Second Circuit Explains when Default Judgments Qualify for Issue Preclusion
Discovery abuse in a prior lawsuit can result in nondischargeability in a later bankruptcy.
Court:
Immediately Withdrawing the Reference Is ‘Absurd,’ District Judge Says
Defendants in lawsuits by Lehman Brothers are stuck in bankruptcy court until the cases are ready for a jury trial.
Losing Competitive Advantage Doesn’t Justify Redacting a Settlement Agreement
Judge Garrity in New York adopts a narrow view of ‘commercial information’ that may be redacted in a court filing.
Second Circuit Defines a Prohibited Double Recovery on Fraudulent Transfers
There is no prohibited double recovery from multiple defendants, the appeals courts says, until the trustee has recovered cash equaling the value of the fraudulently transferred property.
Court:
Trustee Allowed to Sue for Fraudulent Transfer on an Unenforceable Contract
Long Island’s Judge Grossman follows the Third Circuit by finding limitations on the Rooker-Feldman doctrine.
New York Judge Refuses to Waive Collateralization for Debtors’ Bank Accounts
In a large ‘prepack,’ the debtor was required to spend $80,000 a month for its depository bank to obtain a bond required by Section 345(b).
Second Circuit Opinion Raises Questions Left Open by Taggart v. Lorenzen
If a lower court buys an argument that’s clearly wrong, is the argument nonetheless ‘objectively reasonable?’ And does Taggart apply to an automatic stay violation?
Court:
Rule 2004 Discovery Barred for Use in Litigation Outside Bankruptcy Court
Judge Sean Lane publishes an opinion to nip an improper discovery tactic in the bud.
Religious Contributions Not Considered in Dischargeability of Student Loans
First Amendment doesn’t compel deduction of religious contributions in finding an ‘undue hardship’ justifying the discharge of student loans.
Delay in Appointment of a Foreign Representative Isn’t Fatal to Chapter 15 Recognition
Allegedly repudiating U.S. dollar obligations won’t preclude a finding of property in the U.S., Judge Lane rules.