California

DocuSign Not Permitted Absent Existence of the Document with a ‘Wet’ Signature

As a general rule, counsel must show the existence of a document with a ‘wet’ signature to use an electronically signed version in court.

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.

Bankruptcy Judge Reflects on ‘Leverage-Shifting’ In Denying a Nondebtor Injunction

Bankruptcy Judge William Lafferty declined (for now) to halt suits against nondebtor affiliates for lack of an adequate record to justify a preliminary injunction.

Deferred Settlement Agreements Aren’t Executory Contracts and Can’t Be Assumed

A deferred settlement agreement, like a workout agreement, can’t be assumed under Section 365.

Like Willful Violations, Technical Stay Violations Are Void, Not Just Voidable

California bankruptcy judge doubts the Ninth Circuit will adopt the BAP’s dicta by holding that technical stay violations are only voidable, not void.

DIP Counsel’s Right to Compensation Ends Immediately on a Trustee’s Appointment

Appealing an order appointing a chapter 11 trustee does not entitle the DIP’s counsel to compensation pending appeal, Judge Klein says.

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.

Rule 9011 Sanctions Imposed for Filing Decedent’s Estate to Halt Foreclosure

Judge Christopher Klein lays out the requisites for imposing sanctions under Rule 9011 for frivolous filings.

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.