Case Updates

The United States Court of Appeals for the Third Circuit recently ruled that a triangular arrangement which allowed for set off of money the debtor owed to a company’s affiliate against what the parent company owed to the debtor was not allowed under section 553 because the necessary mutuality was not present, despite the fact that such arrangement was enforceable as a set off under state law Read more

In In re Kramer, ___ B.R. ___, 2021 Bankr. LEXIS 358 (Bankr. N.D. Ok.. February 16, 2021) (“Kramer”), relying on a systemic application of Oklahoma contract law and the relevant statute, the United States Bankruptcy Court for the Northern District of Oklahoma (the “Court”) denied the Chapter 7 trustee’s motion to sell the debtor’s interest in a handful of LLCs over the objection of the debtor and the other members because the trustee’s sale violated various terms of the governing operating agreements. Read more

The U.S. District Court for the District of Idaho affirmed the decision of the bankruptcy court for the District of Idaho finding that a successful creditor in a non-dischargeability proceeding was entitled to an award of attorneys’ fees in prosecuting the action. Read more

Dear members of the constituency list of the Commercial Transactions Committee: The following is an update analyzing a recent case of interest: Bankruptcy Court Denies Enforcement of Clause Limiting Liability of Amazon Services as Damages Unascertainable at Time of Agreement and as Against Public Policy A bankruptcy court in Arizona denied enforcement of a clause limiting the liability of Amazon Services LLC in transactions arising under the Amazon Services Business Solutions Agreement (Agreement), ruling that at the time the Agreement… Read more

In an unpublished decision, the Ninth Circuit affirmed the District Court’s dismissal of a debtor’s claims against a creditor and credit reporting agencies for failure to report payments after discharge, but reversed the District Court holding that a debtor cannot pursue a claim against a lender for failing to report a positive payment history during the bankruptcy proceeding and prior to discharge. Read more

Assn. for L.A. Deputy Sheriffs v. Macias (CA2/8 B295086 4/30/21) Union Board Member Removal Read more

Recent Family Law Cases
[Opinions available at: http://www.courts.ca.gov/opinions-slip.htm] Read more

In Emond v. Ryan McCarthy Investments, LLC (“Emond”), __ B.R.__, 2020 Bankr. LEXIS 1543 (May 21, 2020), the U.S. Bankruptcy Appellate Panel of the Ninth Circuit, in a non-published opinion, ruled that the bankruptcy court abused its discretion by granting a creditor’s motion to extend the deadline to file a complaint objecting to the dischargeability of a debt under 11 U.S.C. section 523 without a finding or showing of cause as required by Fed. R. Bankr. P. 4007(c). Read more

In re Cabral, 2020 WL 6556998 (November 5, 2020), the United States Bankruptcy Appellate Panel of the Ninth Circuit (“BAP”) affirmed the bankruptcy court's decision denying Debtors’ motion to dismiss their Chapter 7 case for cause under Section 707(a). Read more

Wilson-Davis v. SSP America, Inc. (CA2/3 B306781, filed 3/11/21, pub. ord. 4/9/21) Arbitration Motion to compel arbitration of statutory wage and hour claims properly denied where the collective bargaining agreement provided for arbitration of claims arising under the agreement but did not waive employees’ right to a judicial forum for statutory claims. Read more