Business Law

In a recent nonprecedential disposition, the Ninth Circuit (the Court) denied a prevailing debtor’s right to attorney’s fees arising from a nondischargeability adversary because the proceeding was not an action “on a contract” under California Civil Code § 1717. Read more

In a ruling that affirmed the confirmation of subchapter V Chapter 11 plan, the Bankruptcy Appellate Panel for the Ninth Circuit (the BAP) made two significant rulings: (1) that a profit motive is not required to satisfy the requirement of Bankruptcy Code § 1182(1)(A) that a debtor must be “engaged in commercial or business activities” on the petition date to be eligible for subchapter V; and (2) that the burden is on the debtor to prove subchapter V eligibility. Read more

In a recent published opinion, the Fourth Circuit Court of Appeals (the Court) ruled that the defense of in pari delicto is applicable against a bankruptcy trustee pursuing litigation on behalf of the estate, whether the trustee is standing in the shoes of the debtor or in the shoes of a hypothetical lien creditor. Read more

The Bankruptcy Court for the Western District of New York (the “Court”) recently denied confirmation of a Subchapter V plan and dismissed three consolidated Subchapter V cases for cause on motions by the Office for the U.S. Trustee (“UST”), exercising discretion not to convert to Chapter 7. In re MCM Natural Stone, 2022 WL 1074065, 2022 Bankr. LEXIS 987 (Bankr. W.D.N.Y. April 8, 2022) Read more

In Haynie v. Krystal (In re Haynie), 624 B.R. 872 (Bankr. 9th Cir. 2021) (“Haynie”), the Bankruptcy Appellate Panel of the Ninth Circuit (the “BAP”) held that the Bankruptcy Court correctly ruled that the later of two competing inconsistent “judgments” in the same case between the same parties in state court on the same dispute was entitled to preclusive effect in a nondischargeabilty adversary proceeding. Read more

The California Court of Appeal tackled the perplexing subject of sales and use tax by beginning its opinion acknowledging the complexity of the subject matter: “Albert Einstein reportedly said, ‘The hardest thing in the world to understand is the income tax.’ Read more

We are back and in person! A panel of distinguished financial services experts will discuss legal, regulatory and technology developments impacting the financial services industry, fintech challenges, cybersecurity threats, new payments developments, consumer protection enforcement, outlook on regulatory supervision, and more. Read more

The Business Law Section is pleased to announce that James P. Hill (“Jim”) has been selected to receive the Business Law Section’s 2022 Lifetime Achievement Award. Read more

In a wage-and-hour misclassification action, the District Court, Judge Alsup, granted in part plaintiffs’ motion for class certification and motion for summary judgment on certain certified claims, finding Jan-Pro franchisees to be employees who had been misclassified as independent contractors. Read more

Plaintiff Charles Logan executed an Advanced Directive (Prob. Code, §§ 4600–4805) appointing his nephew, Mark Harrod, as his health care agent. Read more