Features

Circuit Courts Split On Review of Bankruptcy Court's Denial of Motion to Dismiss
Appellate courts are split on whether to review a bankruptcy court's denial of a motion to dismiss an entire case. Two district judges within the past few months, hearing appeals from the bankruptcy court, have reached contrary results that underline the split among the nation's courts of appeals.
Features

From Pixel Stuffing to Bots: Avoiding Ad Fraud In Class Notice
Class action notice programs in the settlement context are not immune from fraud. Class counsel has a fiduciary duty to protect the best interests of the class, therefore protecting notice programs and the effectiveness of a digital advertising campaign is critical.
Features

Supreme Court Puts End to Prudential Barriers In Chapter 11 Appeals
The Supreme Court's holding ensures that insurers who have long been silenced in Chapter 11 proceedings will now be heard. It is also a shot across the bow for two other judge-made, atextual doctrines that bar consideration of the merits in Chapter 11 appeals.
Features

Bankruptcy Court Creates Potential Loophole for Cannabis Businesses Seeking Ch. 7 Protection
With a growing leniency in denying motions to dismiss for asserted violations of the Controlled Substances Act and the anticipated rescheduling of cannabis, it appears that bankruptcy relief may become a viable option even for plant-touching and cannabis-related businesses.
Features

The Future Viability of 105(a) Injunctions Following the Supreme Court's Decision In 'Purdue Pharma'
Until now, a successful reorganization assumed the debtor could confirm a plan with nondebtor releases and injunctions based on less than full creditor consensus. Now that nonconsensual releases in Chapter 11 plans are no longer permitted, will debtors have a more difficult time obtaining a 105(a) injunction?
Features

Post-Bankruptcy Petition Lease Claims Don't Automatically Result In An Administrative Expense Claim for Unpaid Rent
If a commercial landlord desires to request post-bankruptcy petition rent and enforcement of other terms of the lease, they should immediately make formal demand for rent and compliance
Features

SCOTUS: Prospective Relief Is Only Remedy Necessary to Resolve Unconstitutional U.S. Trustee Fee Scheme
In a recent decision, the U.S. Supreme Court held that the government was not required to refund millions of dollars paid by a Chapter 11 debtor pursuant to an unconstitutional fee scheme between the judicial districts.
Features

Fifth Circuit Agrees With 'Cleary': Corporate Debtors Are Subject to Section 523(a) In Subchapter V Case
Armed with two circuit-level decisions, creditors who lose at the bankruptcy court level may feel encouraged to appeal. As of now, no court in the Second Circuit has addressed the issue and it remains to be seen how other courts will react.
Features

Do Post-Bankruptcy Petition Lease Claims Automatically Result In An Administrative Expense Claim for Unpaid Rent?
In In re Jughandle Brewing, a NJ Bankruptcy Court concluded allowance of an administrative expense claim is not automatic and also may not be the sole remedy for a debtor or trustee's failure to perform its post-petition obligations under a commercial lease.
Features

Heavy Uptick In Ch. 11 Cases Leads Surge In Bankruptcy Filings In First Half of 2024
Consumer and commercial bankruptcy filings have surged in the first six months of 2024 compared with the same period in 2023, a study said.
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