Automatic Stay

Second Circuit Nixes Nationwide Class Actions for Discharge Violations

The Second Circuit split with the First Circuit, which had permitted nationwide class actions because the discharge injunction is statutory.

J&J’s ‘Baby Powder’ Chapter 11 Case Dismissed a Second Time: No Financial Distress

Bound by the Third Circuit’s first LTL decision, the bankruptcy court found that LTL’s rejiggered second filing suffered from the same defect: no immediate financial distress.

Lack of Creditor Opposition Isn’t Grounds for Extending an Expiring Automatic Stay

A repeat filer in chapter 13 must show ‘clear and convincing evidence’ of improved financial condition to warrant an extension of the automatic stay under Section 362(c)(3)(B), Chief Judge Taddonio says.

A Bankruptcy Petition Automatically Stays the Filing of an Appeal or a Cross Appeal

When the debtor files bankruptcy before the time has elapsed for a creditor to file a cross appeal, the cross appeal is deemed timely when filed within 30 days after the stay terminated, the Tenth Circuit held.

A Supreme Court Arbitration Opinion Could Disrupt Bankruptcies

Split 5/4, the Supreme Court rules that denial of a motion to compel arbitration automatically imposes a stay pending appeal.

A Fourth Circuit Dissenter Opposes Mass-Tort Injunctions Protecting Non-Debtors

The Fourth Circuit majority upheld a preliminary injunction barring tort suits against a debtor’s nonbankrupt affiliates following a Texas divisional merger.

An Alter Ego Suit Doesn’t Violate the Discharge Injunction, BAP Says

At least where nondebtor releases are prohibited, and if Delaware law controls, a suit against an alter ego doesn’t violate the discharge injunction, the Ninth Circuit BAP says.