4th Circuit

The Best Opinion Yet Ordering Refunds for Overpayment of U.S. Trustee Fees

All three courts to confront the question have now ordered the government to refund overpayments of U.S. Trustee fees.

A Section 542(b) Turnover Action Can’t Be Used to Compel Payment of a Judgment

Writs of execution and supplemental proceedings, not turnover actions, are the methods for enforcing a money judgment, Bankruptcy Judge Warren says.

Placing Title Jointly with a Spouse May Be Avoidable if the Spouse Gave No Consideration

In South Carolina, taking title to property jointly with a spouse can be an avoidable gift under the Statute of Elizabeth.

The War Between National and Local Rates Continues in Eastern Virginia

Counsel run the risk of being paid lower local rates in ‘mega’ cases filed in the Eastern District of Virginia.

Judge McAffee Agrees with Former Judge Sontchi on Authorized Corporate Actions

The automatic stay does not bar increasing authorized shares when the debtor is a minority shareholder.

The PBGC Isn’t a ‘Triggering Creditor’ for a Section 544(b) Suit by a Trustee

If the government isn’t suing on a claim originally owing to the U.S., a trustee can’t use the six-year statute of limitations in the FDCPA.

Corporate Debtors in Subchapter V Can’t Discharge Nondischargeable Debts, Circuit Says

Both individuals and corporations in subchapter V of chapter 11 are barred from discharging debts that are nondischargeable under Section 523(a).

Fourth Circuit Rejects Frontal Assault on In Pari Delicto as a Bar to Suits by a Trustee

Circuit refuses to make an exception for trustees regarding the judge-made doctrine of in pari delicto.

Fourth Circuit Rules Emphatically that Taggart Applies to All Contempt in Bankruptcy

Reliance on advice of counsel is not a complete defense to contempt citations.

Texaco’s Plan in 1988 Wasn’t Grounds for Removal to Federal Court, Fourth Circuit Says

In a case that may be headed to the U.S. Supreme Court at least once more, the Fourth Circuit is subjecting 26 multinational oil companies to the tender mercies of the Maryland state courts.