California

Owning a Marijuana Business Doesn’t Disqualify the Owner from Being in Chapter 7

Bankruptcy Judge Montali didn’t toss an individual out of chapter 7 just because he owned two LLCs that sold marijuana at retail.

Federal Government Doesn’t Have Sovereign Immunity to Avoid Contempt Sanctions

Bankruptcy Judge Scott Clarkson nailed the government with $38,000 in sanctions for a ‘willful’ violation of a discovery order shown by ‘clear and convincing evidence.’

May a Trustee Attach a Preference Defendant’s Property Before Judgment?

If the requisites for a preliminary injunction are met, a trustee might be able to freeze some of a preference defendant’s assets when a prejudgment attachment is not available.

Cursing the Debtor by Itself Isn’t a Violation of the Automatic Stay

A vulgarity directed at the debtor wasn’t a stay violation absent an act designed to collect a debt.

A Dischargeability Complaint Filed Without Investigation Resulted in Sanctions

We focus on ethics two days in a row, given the recent disturbing events in Houston.

Bankruptcy Courts Have Statutory Power to Remove Voided Liens

Bankruptcy Rule 7070, incorporating Federal Rule 70 along with 28 U.S.C. § 1655, gives bankruptcy courts power to remove liens of record when the lenders don’t do so voluntarily.

Section 105(a) Doesn’t Give Rise to a Private Right of Action for Abuse of Process

With claims for abuse of process not available in a bankruptcy case, the offended party must pursue contempt or other sanctions created by the Bankruptcy Code, a California district judge says.

Two Opinions on Disallowance of Compensation After Appointment of a Trustee

‘Conflict preemption’ bars retaliation by a professional whose fees are disputed.

Bartenwerfer Isn’t at Odds with Husky, According to Bankruptcy Judge Margaret Mann

A transferor’s fraudulent intent isn’t imputed to the transferee to make the transferee’s debt nondischargeable for ‘actual fraud.’

Find and Fix the Flaws in Appraisals Before They Are Subjected to Cross Examination

An appraisal was rejected entirely as being ‘inherently unreliable’ when it gave the client the value that the client wanted.

Pages