Business Law Insolvency Law Committee

Court rejected defendant's affirmative defenses in fraudulent conveyance suit brought by Chapter 7 trustee of Ponzi scheme debtors, finding that defendant, as a successful businessman, was at least on inquiry notice to conduct a diligent inquiry that would have disclosed the scheme. Read more

Common law claims involving wire transfers, including claims for negligence, conversion, and money had and received, are displaced by duties, allocation of risk, and remedies available under UCC Article 4A. Read more

California Litigation Privilege Does Not Protect Against a Fraudulent Conveyance Claim Arising Out of a Sham Dissolution Proceeding and Stipulated Judgment. Read more

State Claims for Damages Based Upon Documents Filed and Prosecuted in a Bankruptcy Case Are Preempted by the Bankruptcy Code and Rules. Read more

Lender’s Lien Is Subordinated to Receivership Certificate and Receiver’s Sale of the Property Is Confirmed Free and Clear of Lender’s Lien. Read more

First Trust Deed Holder That Judicially Foreclosed on Its Collateral, but Did Not Name Junior Lienholder in Its Judicial Foreclosure Action, Was Time Barred From Extinguishing Junior Lien in Subsequent Action. Read more

In two decisions issued a day apart, the Seventh Circuit analyzed the injury in fact requirement for plaintiffs to have standing to sue debt collectors for violations of the FDCPA. Read more

A purchase money security interest in windows, siding, and gutters in Chapter 13 debtor's home was subject to lien-stripping because it was junior to the first mortgage loan. Read more

The Nevada Supreme Court determined, based on a Nevada statute, that directors and officers of a corporation are not liable for acts or failures to act unless there is a breach of fiduciary duty involving intentional misconduct, fraud or a knowing violation of law. The Nevada Supreme Court did not address exclusions listed in the Nevada statute based on articles of incorporation or corporate governance documents providing for the liability involving other acts. Read more

In Hamilton v. Elite of Los Angeles, Inc. (In re Hamilton), 803 F. App’x 123 (9th Cir. 2020) (2-1 unpublished decision), the United States Court of Appeals for the Ninth Circuit ruled that the bankruptcy court erred in confirming a chapter 11 plan where the debtor was paying only a small portion of a large non-dischargeable debt and yet enjoining the creditor from attempting to collect the rest of the debt from "property committed to the Plan" for five years. Read more