2nd Circuit

Treble Damages for ‘Willfulness’ Won’t Automatically Result in Nondischargeability

The lack of specific findings of fact by the arbitrator meant that a treble damage award for willful breach of contract was dischargeable.

Circuits Are Now Split on the Constitutionality of the 2018 Increase in U.S. Trustee Fees

The Second Circuit split with the Fourth and Fifth Circuits by holding that the increase in fees for the U.S. Trustee system was unconstitutional because it was not imposed simultaneously in the two states with bankruptcy administrators.

U.S. Suit Dismissed After German Defendant Files Insolvency in Germany

Filing a chapter 15 petition wasn’t required for a U.S. district court to dismiss a civil action against a German company undergoing insolvency in Germany.

Brooklyn Decision Shows Why Litigation Finance Is Risky if the Plaintiff Files Bankruptcy

At least in New York, a litigation finance agreement can’t be written to remove all of the lender’s exposure to the borrower’s bankruptcy.

Unusual Facts Permit Selling Property Free and Clear of Judicial Liens

Long Island’s Judge Grossman explores the intricacies of selling property free and clear for less than the amount of liens.

New York Judge Declines (for Now) to Enforce an Indonesian Plan in the U.S.

Manhattan’s Bankruptcy Judge Sean Lane requires a record in the foreign proceeding showing that third-party releases are in accord with foreign law.

Discharge May Be Enforced in Another District, Brooklyn Judge Says

Bankruptcy court has power to entertain a nationwide class action asserting a discharge violation.

Unsurprisingly, Second Circuit Reaffirms the Strictures of Brunner

Second Circuit insinuates that “undue hardship” and the Brunner test are synonymous.

Second Circuit Ducks a Critical Vendor Appeal

An appeal from a critical vendor order was dismissed as equitably moot.

Bankruptcy Settlement Didn’t Discharge All Environmental Claims, New York Judge Says

Due process considerations persuaded District Judge Oetken to conclude that a creditor’s claims, unknown at the time, were not barred by a settlement.