California Central District

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.

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.

A Former Marijuana Business Isn’t Grounds for Dismissal, Los Angeles Judge Says

Judge Neil Bason allows a chapter 11 debtor to distribute the proceeds from the sale of a cannabis business.

A Mistake in the CARES Act on Eligibility for the SBRA Was Fixed by Congress in June

After a technical correction by Congress, now only affiliates of reporting companies are excluded from Subchapter V of chapter 11.

A Hotel Without Income Is ‘Single Asset Real Estate,’ District Judge Says

An operating hotel may not be single asset real estate, but an uncompleted hotel with no income is single asset real estate, according to a Los Angeles district judge.

California Judge Splits with his BAP; Subpoenas Require Court Approval Under Barton

Someone seeking to issue a subpoena to a trustee is the proper party to seek leave under the Barton doctrine, Judge Clarkson says.

The Two-Year Complaint Deadline Can’t Be Extended Without Notice to Defendants

Equitable tolling can extend the two-year deadline for filing complaints, but the deadline can’t be extended without notice to the defendants, even if they are unknown or unknowable.

Counsel Can’t Disclaim Responsibilities Imposed by the Code and Rules, Judge Says

Judge Clarkson laid down guidelines for a lawyer who copies pleadings written by another lawyer in a different case.

Acevedo Doesn’t Bar Compensation for Services Before Entry of a Retention Order

So long as there was no delay in filing the retention application, Judge Tighe identified statutory and practical reasons for allowing compensation for services rendered before entry of a retention order.

A District Court Rules that the U.S. Trustee Fee Increase Isn’t Retroactive

California district judge sides with the dissenter in the Fifth Circuit in saying that the parallel systems of U.S. Trustees and Bankruptcy Administrators violates the Bankruptcy Clause of the Constitution.

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