University Medical Unscathed After Denby-Peterson, Delaware District Judge Says
The government lost a winnable appeal by failing to present evidence in bankruptcy court.
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Undisclosed Fee Sharing Results in Disqualification and Disgorgement in Delaware
Since they weren’t bankruptcy lawyers, the firm wasn’t disqualified for the first nondisclosure offense. The second time, Delaware’s Judge Dorsey ordered disqualification and disgorgement
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Cramdown Doesn’t Require Strict Enforcement of Subordination, Third Circuit Says
Pragmatic opinion by Circuit Judge Ambro allows cramdown to achieve ‘rough justice.’
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Third Circuit Backtracks; Malice Not Required for Punies on a Dismissed Involuntary
Even when after a finding of bad faith, the court retains discretion to deny punitive damages, Third Circuit says. Compensatory damages are not available if the debtor was failing anyway.
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Creditors Have Standing but Not Authority to Pursue Estate Claims, Third Circuit Says
Third Circuit’s Judge Bibas says that courts use the wrong nomenclature when they say that creditors lack standing to pursue claims belonging to the estate. It’s a question of statutory authority, he said, not standing.
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Federal Income Taxes for a ‘Straddle Year’ Are Administrative Priority Claims
On an issue with no appellate authority, a Delaware district judge rules that federal income taxes are administrative claims if filing occurs before the year’s end.
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Suit by Foreign Liquidators Was Remanded to State Court
Delaware district judge permits remand when the suit was subject to mandatory abstention.
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Delaware District Court Upholds Discharge of Environmental Fines in Chapter 11
Environmental fines are discharged in chapter 11 because they do not result from pecuniary loss.
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Third Circuit Endorses an Alternative to Section 524(g) Trusts for Asbestos Cases
Appeals court says that using a trust for future asbestos claims rather than a bar order would be cheaper and avoid unnecessary litigation.
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Bankruptcy Court Had ‘Core’ Jurisdiction over Third-Party Dispute, Third Circuit Says
The bankruptcy court had ‘core’ jurisdiction over a dispute between two nondebtor third parties because the litigation involved the interpretation of a financing order.
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