2nd Circuit

SIPA Bars General Unsecured Claims for Failure to Transfer Accounts Before Filing

The trustee for a bankrupt broker can ignore an individual customer’s request to transfer securities to a solvent broker and may instead transfer customer accounts in bulk.

Court May Depart from the Code When the Debtor Consents and No One Objects

Unique facts were again the basis for a result seemingly at odds with the statute.

Flip Clauses in Swaps Held Enforceable by District Judge in New York

For swaps, the Section 560 safe harbor overrides the anti-ipso facto provisions in the Bankruptcy Code.

Second Circuit Bars Arbitration in a Class Action for Violating the Discharge Injunction

New case seems inconsistent with Second Circuit’s prior opinion compelling arbitration over an automatic stay violation.
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Second Circuit Says Tenuous Connections Establish “Related To” Bankruptcy Jurisdiction

‘Plausibility’ evidently does not apply when pleading ‘related to’ bankruptcy jurisdiction.
Court: 

Simply Initiating Events that Later Violate the Stay Is Not a Stay Violation

Second Circuit approves a stay-violation defense in a nonprecedential opinion.
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The GM Creditors’ Trust Opens a Can of Worms by Nixing a Settlement

Bankruptcy judge finds bad faith for walking out on a fully documented but unsigned settlement.

Bankruptcy Courts Cannot Impose Punitive Contempt Sanctions, District Judge Says

Circuits split on power of bankruptcy courts to impose punitive or criminal contempt sanctions.

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