2nd Circuit

Using a Casino’s ATM Makes the Casino the Initial Transferee, Not a ‘Mere Conduit’

New York judge gives casinos the responsibility for assuring that a gambler’s use of a corporate ATM card is not a fraudulent transfer.

Second Circuit Broadly Caps Wage Claims Accelerated Before Bankruptcy

Second Circuit prevents ‘artful drafting’ from evading the cap on golden parachutes under Section 502(b)(7).
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Majority of Courts Still Permit Small-Dollar Avoidance Suits in the Debtor’s Home Court

New York district judge agrees with the ABI Journal: Congress did not succeed in requiring trustees to file small-dollar avoidance actions in the defendant’s district.

Fines for Defrauding Consumers Are Dischargeable in a Corporate Chapter 11 Plan

Courts are divided on discharging fines in a corporate chapter 11 case when the government itself was not defrauded.

The Date of Service of a Writ of Garnishment Is the Date of Transfer of a Preference

Circuits are split on the date of transfer resulting from a garnishment.

Saving a Failing Company Doesn’t Entail ‘Defalcation’ Regarding Union Obligations

A properly drafted union contract still failed to leave a company officer with a nondischargeable debt for failing to make employer contributions to a union welfare fund.

No Contempt for the IRS on Discharge Without Exhaustion of Administrative Remedies

Is Taggart just a defense that can be waived, or must a debtor plead and prove ‘no objectively reasonable basis’ in a motion for contempt of discharge?

New York Decision Shows that Merit Management Is a Dead Letter

The expansive definition of a ‘financial institution’ allows fraudulent transfers to be structured so that no one will ever be held liable.

Second Circuit Nixes Nationwide Class Actions for Discharge Violations

Second Circuit says that later Supreme Court authority did not undermine the appeals court’s prior decision that creditors cannot compel arbitration of discharge violations.
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Denial of a Claim Doesn’t Divest the Bankruptcy Court of Final Adjudicatory Power

More important law from Madoff: Filing a claim waives the right to a jury trial in district court even if the claim is denied or withdrawn, district judge rules.

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