Trial court erred in denying leave to amend in connection with dismissal of COVID-19 business interruption coverage suit where policy covered losses due to communicable disease events. Read more
The Second Circuit Court of Appeals (the Court) recently ruled that a foreclosure of a tax lien under the strict foreclosure standard established by New York law may be set aside as a fraudulent transfer in a bankruptcy proceeding, rejecting the application of BFP v Resolution Trust Corp, 511 U.S. 531 (1994) to this procedure. Gunsalus v County of Ontario, New York (In re Gunsalus), 2022 WL 2296945 (2nd Cir. June 27, 2022). Read more
In Cantwell-Cleary Co., Inc. v. Cleary Packaging, LLC (In e Cleary Packaging, LLC),___ F.3d ___, 2022 WL 2032296 (4th Cir. June 7, 2022, No. 21-1981) (“Cleary”), reversing the Bankruptcy Court, the United States Fourth Circuit Court of Appeals (the “Fourth Circuit”) held that Bankruptcy Code (the “Code”) section 523(a)’s discharge exceptions as incorporated into Subchapter V by code section 1192(2) apply not to just individuals, but to entities as well. Read more
In a published opinion, the Seventh Circuit Court of Appeals (the Court) recently ruled that a tax sale purchaser which had not been formally served with notices of chapter 11 proceedings, including plan confirmation, but admitted in court that it was a “party” to the proceedings, was bound by the terms of the confirmed plan. Wheeler Financial, Inc., v. JPMorgan Chase Bank (In re Aguirre), 2022 WL 2166885 (7th Cir. June 16, 2022). Read more
The U.S. Bankruptcy Appellate Panel for the Ninth Circuit (the “BAP”) recently published an opinion “to clarify that bankruptcy courts do not always need to examine a compromise as a sale under [Bankruptcy Code] § 363.” Spark Factor Design, Inc. v. Hjelmeset (In re Open Medicine Institute, Inc.), 639 B.R. 169 (9th Cir. BAP 2022). Read more
In a unanimous opinion authored by Justice Sonia Sotomayor, the United States Supreme Court held that a 2017 congressional attempt to temporarily increase quarterly fees charged in large Chapter 11 bankruptcy cases is subject to the United States Constitution Bankruptcy Clause’s uniformity requirement and that the act violated the Constitution’s uniformity mandate. Read more