Fraudulent Transfer Damages Limited to Creditors’ Total Claims
Delaware’s Judge Owens won’t allow perpetrators of a fraudulent transfer to benefit from avoiding the transfer.
Court:
Four-Year Statute of Limitations Can Stretch to at Least Seven Years, Judge Owens Says
The one-year discovery clause in UFTA allows a debtor or trustee to file an avoidance suit even if the ordinary four-year statute has elapsed.
Court:
Stays Are Automatic from Denial of a Motion to Dismiss for Sovereign Immunity
Courts are divided on whether the district court loses jurisdiction to stay proceedings in bankruptcy court after the filing of a notice of appeal.
Court:
Delaware Judge Upholds U.S. Trustee Fee Increase in Pending Cases
Parting with some other bankruptcy courts, Judge Walrath upholds the constitutionality of the major increase in U.S. Trustee fees that was imposed on pending cases in early 2018.
Court:
A Pennsylvania Gambling License Isn’t ‘Property’ Recoverable as a Fraudulent Transfer
Sovereign immunity required dismissal of a suit to recover the value of a gambling license because the suit wasn’t an ancillary exercise of the bankruptcy court’s in rem jurisdiction over a res.
Third Circuit Issues an Important Decision on Liquidation of Repo ‘Credit Enhancements’
Appeals court upholds finding that the mortgage securities market in 2007 was declining, not dysfunctional.
Court:
Third Circuit Finds Constitutional Power to Grant Releases in Confirmation Orders
Third Circuit emphasizes the limitation of nonconsensual, third-party releases to ‘exceptional’ cases.
Court:
Opting Out Won’t Justify Imposing Third-Party Releases, Delaware Judge Says
Saying she is in the minority in her district, a new Delaware judge ruled that allowing creditors to opt out won’t permit a plan to impose nonconsensual, third-party releases.
Court:
Circuit Split Narrows on the Automatic Stay and Turnover of Repossessed Cars
Third Circuit also holds that turnover in Section 542(a) is not automatic. The debtor must mount an adversary proceeding to obtain a turnover of property.
Court:
Sovereign Immunity Doesn’t Insulate States from Lien Stripping, District Court Says
States have no sovereign immunity defense to lien stripping, even if the state has not filed a proof of claim.