Business Law Insolvency Law Committee

Ruling  on a question “where there is a square circuit split and no Third Circuit authority,” the united States Bankruptcy Court for the District of Delaware (the Court) recently held that in a fraudulent transfer action, it is not necessary to name the initial transferee in order to sue a subsequent transferee for recovery of fraudulently transferred funds.  However, avoidance of the initial transfer is an element which must be proved in order for a trustee to prevail against the subsequent transferee.  Phillips v SS Associates LLC (In re ONH AFC CS Investors, LLC), ___ B.R. ___, 2026 WL 312892, 2026 Bankr. LEXIS 293 (Bankr., D. Del. February 4, 2026).  To view the opinion, click here: Read more

The United States Bankruptcy Court for the Middle District of North Carolina (the Court) recently held that enforcement of a restitution judgment is not subject to the automatic stay under the provisions of the Mandatory Victims Restitution Act (“MVRA”) even when the criminal defendant is the Debtor’s ex-spouse, not the Debtor, and had transferred his interest to the Debtor prepetition.  In re Sinclair, 2026 WL 122308 (Bankr. M.D. N.C. January 14, 2026).  To view the opinion, click here: Read more

The United States District Court for the Northern District of Illinois (the Court) recently denied debtors’ writ of mandamus, which sought to compel the United States Trustee (UST) to submit a report on the alleged statutory violations by a trustee and her counsel during chapter 11 bankruptcy proceedings.  Beeson v. Bondi, ___ B.R. ___, 2025 WL 3089108 (N.D. Ill. 2025).  To view the opinion, click here: Read more

In a matter pending in a United States District Court where two judgment creditors, one with a federal judgment and one with a state court judgment,  were competing to execute on the same judgment debtor’s assets, the Seventh Circuit Court of Appeals (the Circuit Court) held that the Rooker-Feldman doctrine did not deprive the District Court of jurisdiction to determine a priority issue. MedLegal Solutions, Inc. v Premium Healthcare Solutions, LLC, ___ F. 4th ___, 2026 WL 274561 (7th Cir. Feb. 3, 2026).  To view the opinion, click here: Read more

The following is a profile of the Honorable Julia W. Brand – the latest in a series of profiles of Ninth Circuit bankruptcy judges.  Members of the California Lawyers Association’s Insolvency Law Committee and Business Law Section Executive Committee met Judge Brand in her chambers and discussed her personal and professional background, observations from the bench, and other issues of interest. Read more

The following is a case review written by Joseph Boufadel, a partner at Salvato Boufadel LLP, analyzing a recent decision of interest, Kim v. Kim (In re Kim), 2025 Bankr. LEXIS 3265 (B.A.P. 9th Cir. Dec. 17, 2025). Read more

March 4, 2026 Summary The Ninth Circuit BAP affirmed orders denying a § 362(c)(3) stay extension and then dismissing the Chapter 11 case under § 1112(b), finding the debtor’s bad faith egregious under the Leavitt factors, warranting dismissal and a two-year bar under § 349(a). To view the full decisions, click here and here. Facts “… the [district] court ‘cannot conclude that his litigation history has reached the point of vexatious -- though it’s close.’” Van Damme 25-1052, at *9.… Read more

The following is a case summary written by Gary M. Kaplan, a partner at Farella Braun + Martel LLP in San Francisco, analyzing Griffithe v. Samec (In re Griffithe), 674 B.R. 91 (B.A.P. 9th Cir. Oct. 30, 2025), a recent decision of interest. Read more

The Bankruptcy Appellate Panel of the 9th Circuit, Judges Brand, Lafferty and Gan, affirmed the order of Nevada Bankruptcy Judge Gary A. Spraker, which determined Plaintiff Steven Mark Hayden (“Hayden”) to be a vexatious litigant and imposed a pre filing order requiring Hayden to submit filings to the United States Bankruptcy Court for Judicial review prior to filing. In re Cashion Family Trust, 669 B.R. 341(Bankr. D.  Nev. 2025).  Read more

Dear constituency list members of the Insolvency Law Committee (ILC), the following is an ebulletin by Leonard Gumport about developments in the Purdue Pharma L.P. case: Summary During 2008-2016, while marketing OxyContin, Purdue Pharma L.P. (Purdue) distributed $10+ billion to or for the benefit of Purdue’s owners (the Sacklers). In 2019, debtors Purdue, its general partner, and subsidiaries (collectively, Debtors) filed chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of New York (the Bankruptcy Court). The… Read more