Third-Party, Non-Consensual Releases Nixed in the Purdue ‘Opioid’ Reorganization
Manhattan district judge vacated confirmation of Purdue Pharma’s chapter 11 plan because the court had no statutory power to impose non-consensual releases of creditors’ direct claims against non-debtors.
Court:
Fourth Circuit Would Discharge CERCLA Claims if Pollution Occurred Before Filing
Maryland district judge predicts that the Fourth Circuit would adopt a debtor-friendly rule more broadly discharging environmental claims when the acts occurred before chapter 11.
Court:
Student Loans Were Discharged Only with Assistance from Pro Bono Counsel
A debtor with negative disposable income was forced to go through two trials and three appeals to discharge student loans.
On Student Loan Discharge, District Judge Requires Responses to Unasserted Defenses
New York district judge requires a student loan debtor to prove the reasonableness of living expenses when the lender never objected.
Third Circuit Makes Strict Rules Before Subrogation Rights Kick In
There can be no question about whether the beneficiary of a surety bond has been ‘paid in full’ before the surety has subrogation rights.
Court:
Objections to Priority Claims May Follow Confirmation of a Chapter 13 Plan
Confirming a chapter 13 plan on the assumption that a claim was entitled to priority didn’t bar the debtors from later objecting to the priority of the claim.
Split Heading to the Tenth Circuit on Sovereign Immunity for Section 544(b) Claims
The Tenth Circuit will likely take sides on a split between the Ninth and Seventh Circuits on Section 544(b) state-law claims brought by a trustee in the shoes of an actual creditor.
Court:
Civil Penalties for Defrauding Consumers Weren’t Discharged Under Section 1141(d)(6)(A)
Reversing the bankruptcy court, a district judge in New York held that a civil penalty wasn’t discharged even though the fraud wasn’t committed against the government.