Case Updates

Court rejected the notion that those who do business with a Ponzi scheme in principle do not provide reasonably equivalent value for an intentional fraudulent conveyance and that the avoidability of the transfers by the enterprise depends in part on the good faith of the transferee targets. Read more

An Indiana bankruptcy court has held that a purchase money security interest in windows, siding and gutters installed in a Chapter 13 debtor’s home was subject to lien-stripping because it was junior to the first mortgage loan. Read more

Following Conversion to Chapter 7, Chapter 13 Trustee Must First Pay Allowed Chapter 13 Administrative Claims and Then Pay Any Remaining Funds to the Debtor. Read more

Defendant Is Entitled to Attorneys’ Fees After Defending Alter Ego Claim Even Though Defendant Was Not a Party to the Underlying Contract With the Attorneys’ Fee Provision. Read more

Court denied City's request to apply the reasoning of BFP v. RTC to the Massachusetts property tax strict foreclosure scheme which results in a tax taking rather than an auction. Read more

Lee v. Kotyluk (2021) _ Cal.App.5th _ , 2021 WL 62274: The Court of Appeal affirmed the trial court's order granting defendant's motion for judgment on the pleadings, but reversed its order denying plaintiff's request to amend the complaint for unlawful detainer regarding a commercial lease. The case raised issues of first impression regarding whether a three-day notice under Code of Civil Procedure section 1161(3) was defective because it was issued before plaintiffs became the owners of the property, or was defective because it failed to identify the party to whom defendant could return possession of the property. Read more

Unlicensed companies may manage licensed skilled nursing facilities via an approved management agreement. Read more

Prior precedent establishing contempt as the exclusive remedy for discharge injunction violations did not preclude a discharged debtor from seeking a remedy under the FDCPA against debt collectors who attempted to collect a debt that had been paid in full. Read more

Bankruptcy Court denied law firm’s employment application in debtors’ Chapter 11 Subchapter V bankruptcy cases because of the firm’s prepetition representation of debtors and their principals as counsel in litigation with the debtors’ largest creditors. Read more

On January 28, 2021, the Delaware Court of Chancery, in the case of Swipe Acquisition Corporation v. Peter M. Krauss et.al., 2021 Del Ch. Lexis 14, held that a Delaware choice of law provision in a stock purchase agreement must yield to the State of California’s strong public policy that violations of its corporate securities laws are not waivable. Read more