In In re Cuker Interactive, LLC, No. BR 18-7363-LA11, 2020 WL 7086066 (Bankr. S.D. Cal. Dec. 3, 2020), Judge Louise Adler of the Bankruptcy Court for the Southern District of California, addressing an issue where the courts nationwide are split, held that unsecured creditors of a solvent debtor in Chapter 11 are only entitled to postpetition interest at the federal judgment rate, rather than at the potentially higher contract rate or state judgment rate. Read more
Stancil v. Super. Ct. (2021) _ Cal.5th _ , 2021 WL 1727612: The California Supreme Court affirmed the Court of Appeal ruling denying defendant writ relief from the trial court's order denying defendant's motion to quash service of summons under Code of Civil Procedure section 418.10 in an unlawful detainer case. Read more
A Bankruptcy Court in the Eastern District of New York recently held that a litigation finance company did not hold an effective assignment of a debtor’s interest in settlement proceeds that did not exist on the petition date nor did it have a secured claim, even in funds subject to debtor’s exemption. Read more
Triangular arrangement which allowed for set-off of money the debtor owed to a company's affiliate against what the parent company owed the debtor was not allowed under Bankruptcy Code section 553 because the necessary mutuality was lacking, even though the set-off was allowed under applicable state law. Read more
Local bankruptcy rules permitting the grant of extensions of time to file objections to claimed exemptions and to file nondischargeability complaints contradicted the requirement of showing "cause" under the Federal Rules of Bankruptcy Procedure and, therefore, the local rules were required to be eliminated. Read more
Court denied enforcement of a clause limiting Amazon's liability under its service agreement, ruling that when the agreement was executed damages were not ascertainable and, thus, enforcing the clause would violate public policy. Read more
Doctrine of primary jurisdiction, not exhaustion of remedies, warrants staying litigation to obtain a decision on issues within an agency’s expertise. Read more