3rd Circuit

Third Circuit Has a Broad View of ‘Related To’ Jurisdiction After Plan Confirmation

A post-confirmation lawsuit to generate funds to pay a chapter 13 plan establishes ‘related to’ jurisdiction for noncore claims.
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Third Circuit to Decide: May Magistrate Judges Issue Final Orders on Bankruptcy Appeals?

The Third Circuit will decide whether the broad language in the Federal Magistrate Act allows magistrate judges to issue final orders on bankruptcy appeals when the parties consent.
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Delaware Judge Sets the Standards for Nondebtor Releases Following Purdue

Nondebtor releases are valid whether the creditor votes for or against the plan, as long as notice to opt out was clear and conspicuous.

The ‘Home Court’ Rule Does Not Apply in Chapter 15 Cases, District Judge Says

The Delaware district court affirmed Bankruptcy Judge Thomas Horan, who ruled that a creditor cannot sue a chapter 15 debtor in bankruptcy court on a prebankruptcy claim.

U.S. Trustee Moves to Transfer Venue of New J&J Case from Houston to New Jersey

The new J&J filing starkly raises the issue of venue-shopping. If the new case remains in Houston, the Texas court would not be bound by the Third Circuit’s ‘financial distress’ requirement.

Solvent Debtors in Chapter 11 Must Pay Make-Wholes, Third Circuit Says

The opinion by Circuit Judge Thomas Ambro reads Jevic as animating the solvent-debtor exception to the disallowance of unmatured interest.
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Reports by Risk Management Association Admissible to Prove ‘Ordinary Course’ Defense

Extraordinary collection efforts do not preclude invoking the ‘ordinary course’ defense to a preference.

Being Forced into Bankruptcy Can Be Irreparable Harm, Third Circuit Says

A noncompetition agreement that would preclude finding other sources of revenue can be the basis for showing irreparable harm and entitlement to a preliminary injunction.
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Tyler Applied Retroactively to Set Aside a Judgment of Tax Foreclosure

Tyler was applied retroactively because the debtor’s efforts to set aside a tax foreclosure judgment were ‘in the pipeline’ when bankruptcy began.

Dismissal of Second J&J Chapter 11 Filing Upheld by Return Mail in the Circuit

The ‘attenuated possibility of insolvency’ in the future does not establish ‘financial distress,’ Circuit Judge Ambro said, interpreting his own prior opinion.
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