California Eastern District

Section 328(c) and Rule 2014(a) Both Permit Denial of All Compensation

Undisclosed representation of the debtor’s principal resulted in denial of all compensation sought by counsel for the corporate debtor.

A Client Can Be Liable for Sanctions from the Lawyer’s Violation of Rule 9011

Judge Klein let a lawyer off the hook for violating Rule 9011 because the lawyer had already been punished enough.

Denial of a Motion to Convert from ‘11’ to ‘7’ Is Not Final and Thus Not Appealable

Until now, there has been surprisingly little precedent directly on point to say that denial of a motion for conversion from chapter 11 to chapter 7 is not a final order subject to appeal

Debtors Can’t Easily Glom Uncashed Distribution Checks

Just because a creditor doesn’t cash a distribution check doesn’t mean it’s abandoned and reverts to the debtor.

Refusal to Arbitrate the Validity of a Security Interest Is Tersely Affirmed in California

Are the lower courts out of step with the Supreme Court when it comes to enforcement of arbitration of disputes in bankruptcy court?

‘Disposable Income’ Must Be Carefully Defined to Preserve the Debtor’s Discharge

Judge Christopher Klein parses the burdens of proof on conversion, dismissal and right to a discharge for an individual in chapter 11.

California Judge Explains Why Acevedo Doesn’t Bar Retroactive Orders

Retroactive and nunc pro tunc orders aren’t the same thing, Judge Jaime says. Orders may be retroactive when the power is implied by statute.

Judge Christopher Klein Takes Sides on a Circuit Spilt Coming to the Supreme Court

Judge Klein’s opinion reads like an amicus brief urging the Supreme Court to grant ‘cert’ and resolve a circuit split by taking sides with the majority on Section 362(c)(3)(A).

Section 362(k)(1) Sanctions Apply to Automatic Stay Violation Continuing After Discharge

Almost $35,000 in actual and punitive damages was imposed on a judgment creditor and its collection law firm for failing to vacate a garnishment following notice of bankruptcy and discharge.

Debt of $46,000 Discharged Despite a Flagrantly False Loan Application

Even though the debtor defaulted, Judge Christopher Klein held a trial and ruled that the lender had not relied on a false loan application.

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