Stripping Down a Mortgage on a Mixed-Use Property Under the SBRA
A New York court allows a chapter 11 case pending for 15 months to redesignate for treatment under the Small Business Reorganization Act.
Lawyer for Madoff Customer Slapped with $57,347 Discovery Sanction
Calling the Madoff trustee a liar and basing a discovery motion on facts known to be false resulted in sanctions under Rule 37(a)(5)(B).
Judge Finds a Workaround to Avoid Using Nunc Pro Tunc Retentions
Judge Grossman finds a way to grant allowances of compensation for services performed before the entry of a retention order.
Technicalities Insulated a Lawyer from Liability for Misusing an IOLA
A creditor lost a dischargeability suit by failing to call the right witnesses to prove that a lawyer’s trust account was used to hide assets.
Holding a Contempt Hearing May Be Ok, but the Remedy Might Violate Automatic Stay
A contempt hearing fell under the ‘criminal’ exception to the automatic stay, but jailing a debtor to coerce payment of a prepetition debt violated the stay, Judge Grossman ruled.
Mortgage Servicer Blew the Statute of Limitations, Judge Grossman Says
New York intermediate appellate courts are split on critical questions about the ‘start date’ for the statute of limitations on mortgage foreclosure.
Trustee Allowed to Sue for Fraudulent Transfer on an Unenforceable Contract
Long Island’s Judge Grossman follows the Third Circuit by finding limitations on the Rooker-Feldman doctrine.
A Pending Sale Contract Doesn’t Obliterate a Homestead Exemption in Chapter 7
New York court delves into issues covered by the Fifth Circuit in Hawk and DeBerry.
Tuition Payments by Insolvent Parents (Likely) Constitute Fraudulent Transfers
District judge in Brooklyn overturns the bankruptcy court and again exposes colleges and universities to the receipt of fraudulent transfers when insolvent parents pay their childrens’ tuition.
‘Innocent’ Transferee Held Potentially Liable for Payment from a Ponzi Scheme
With partial success, trustee sues the casino where a fraudster gambled away stolen money.