Enjoining a Prepetition Policy Doesn’t Violate the Automatic Stay, Fifth Circuit Says
Seeking attorneys’ fees from the debtor for a postpetition civil rights violation does not by itself make a postpetition lawsuit subject to the automatic stay.
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Arbitration Nixed on a Lender’s Claims for Violation of the Automatic Stay
Bankruptcy Judge Paul Black denied a motion to compel arbitration but didn’t decide whether he would certify a class.
Chicago’s Judge Cox Enjoins Suits Against Nondebtors, Distinguishing Purdue
After Purdue, two bankruptcy judges now say that preliminary injunctions protecting nondebtors are permissible to foster successful chapter 11 reorganizations.
Delaware Judge Explains How to Obtain a PI Protecting Nondebtors After Purdue
In the first decision on the topic after Purdue, Delaware’s Judge Goldblatt denied the debtor’s motion for a preliminary injunction to stop a lawsuit against nondebtors.
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Misleading Ads to Poach a Debtor’s Customers Is No Stay Violation, Circuit Says
The Second Circuit gives competitors license to mount false advertising unless it’s ‘virtually certain’ to affect a debtor’s customer contracts or goodwill.
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Discharge Injunction Violations Can’t Be Heard in Federal District Court
Circuits are split on whether claims for contempt of the discharge injunction must be brought in the bankruptcy court that issued the discharge.
Early Edition with Bill Rochelle
Ninth Circuit Bankruptcy Judges Disagree on Allowing Emotional Distress Damages
One day apart, bankruptcy judges in the Ninth Circuit disagreed on emotional distress damages for violations of the discharge injunction.
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Recoupment of Social Security Benefit Overpayments Is Barred as a Setoff
Medicaid overpayments may be recovered as ‘recoupment’ while Social Security overpayments are attempted setoffs barred by discharge, Bankruptcy Judge Harwood says.
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