2nd Circuit

Madoff Trustee Scores Another Major Victory in the Second Circuit

The appeals court rules that the Madoff trustee is entitled to summary judgment together with prejudgment interest at 4%.
Court: 

The Pandemic Was No Reason for Raising an Investment Banker’s Cap on a Fixed Fee

The length and the effects of the pandemic were capable of being ‘anticipated’ and therefore provide no reason for modifying a fixed fee under Section 328(a).

Claims Agents Aren’t Junior Judges Ruling on the Validity of Claim Transfers

The transferee of a claim doesn’t have standing to object to recording the transfer of a claim to it on the claims docket, Judge Garrity says.

Second Circuit Definitively Defines ‘Inquiry Notice’ Under New York Law

Saving Revlon’s bank $500 million, the Second Circuit holds that the law of restitution allows a bank to recover payments made mistakenly when the recipient had no right to receive the payment.
Court: 

Average Lateness and Bucketing Tests Confirm the Ordinary Course Defense

A district judge in Brooklyn applied the two most commonly used tests for the ‘ordinary course’ defense to uphold dismissal of preference complaints.

Bankruptcy Judge Finds Liability for a Municipality’s Denial of Due Process Rights

A local government removed a lawsuit to bankruptcy court, but the bankruptcy judge turned around and slam-dunked the government for violating the plaintiff’s Fourteenth Amendment rights.

Claims Agents Are Barred from Making Money on the Side from the Claims Docket

Bankruptcy Judge Sean Lane in New York barred a chapter 11 claims agent from selling the claims docket to a claims trader in return for a share of the fees earned by the trader.

Channeling ‘Asbestos’ Claims Is a Legitimate Use of Chapter 7, District Judge Says

Reversing the bankruptcy court, a district judge ruled that a company may file in chapter 7 even when there are no operations and no assets aside from insurance.

Caymans Recognized as the ‘COMI’ for a Property Company Operating in China

A country that was ineligible to host a nonmain foreign proceeding was nonetheless held to have the foreign main proceeding.

Second Circuit Bright-Line Rule: It’s Always a Stay Violation if Debtor Is a Defendant

Second Circuit exercises ‘hypothetical’ appellate jurisdiction when finality is murky.
Court: 

Pages