Florida Middle District

Sanction for Discharge Violation: $450 in Actual Damages and $10,000 for Attorneys’ Fees

When there’s ‘no fair ground of doubt’ about a discharge violation, the creditor should settle or make an offer of settlement to avoid larger damages after trial.

Proceedings for Contempt Discharge Held Not Subject to Arbitration

Florida case raises the question of whether the Supreme Court will eventually give bankruptcy a general exemption from arbitration, or an exemption only for core proceedings.

‘Mere Conduit’ Defense to a Fraudulent Transfer Isn’t Limited to Banks

Florida judge finds no duty to investigate suspicions of fraud when even the auditors had been duped.

Like the Second Circuit, Florida Judge Bars Arbitrating a Class Suit for Discharge Violations

Supreme Court’s subsequent Epic decision casts doubt on opinions overriding arbitration agreements in the bankruptcy context.

Life Insurance Proceeds Beyond 180 Days Are Estate Property in Chapter 13

Courts split on inclusion of life insurance proceeds in a chapter 13 estate.

Bank Zapped $1.3 Million for an Erroneous Estoppel Letter that Blocked a Sale

Lender assessed the costs of chapter 11 for causing an unnecessary bankruptcy.

Baker Botts Read Narrowly on Compensation for Defending Fee Application

Florida judge allows fees for supplementing application with more detail.

Validity of Inherited Homestead Exemption Decided by Allusion to Baseball

A house that wasn’t a homestead on the filing date held eligible for the exemption.

Ability to Pay Debts Does Not Control on Section 707(a) Motions to Dismiss

Evading payment of a debt is a valid use of chapter 7, Florida judge rules.

Qui Tam Suits Are Exceptions from the Automatic Stay

Automatic stay is no safe harbor from suits under the False Claims Act.