In Blixseth v. Brown (In re Yellowstone Mountain Club), 841 F.3d 1090 (9th Cir 2016), the Ninth Circuit extended the Supreme Court’s holding in Barton v. Barbour, 104 U.S. 126 (1881), requiring a plaintiff to first obtain the bankruptcy court’s permission before suing a court appointed officer in another court, to apply to suits against the members… Continue reading Ninth Circuit Extends “Barton” Doctrine to Bar Suit Against Creditors’ Committee Members Without Authorization from the Bankruptcy Court
Just read an informative article published by Chadbourne & Parke in its International Restructuring Newswire discussing large company bankruptcy filings during 2015 and significant court decisions. Take a look. http://www.chadbourne.com/Year-In-Review-IR-Winter-2016
In a major development affecting individual chapter 11 bankruptcy debtors, the 9th Circuit Court of Appeals has overruled earlier case law and ruled that the “absolute priority rule” under 11 U.S.C. § 1129(b)(2)(B)(ii) continues to apply to individual debtors following the 2005 BAPCPA amendments to the Bankruptcy Code. See David K. Zachary v. California Bank… Continue reading 9th CIRCUIT HOLDS ABSOLUTE PRIORITY RULE APPLIES IN INDIVIDUAL DEBTOR CHAPTER 11 CASES
Last week, the Third Circuit Court of Appeals upheld a $2.3 million jury verdict in favor of a Creditors’ Committee, finding that the directors of a failed Pittsburgh nursing home had breached their fiduciary duties to the corporation’s creditors by failing to remove the home’s administrator and chief financial officer when their mismanagement became apparent. Official… Continue reading Directors Hit With $2.3 Million Judgment for Failing to Replace Incompetent Managers
Effective December 1, 2014, Federal Rule of Bankruptcy Procedure 7004(e) was amended to require service of a summons in an adversary proceeding within seven days of its issuance. This cuts in half the previously allowed 14-day time period. Defendants still have 30 days from issuance of the summons to respond to the complaint. Prior to the change, defendants often had less… Continue reading FRBP 7004(e) Amended to Require Service of a Summons Within Seven Days of Issuance
When our firm filed the first Catholic diocese bankruptcy case in 2004, the debtor provided notice of the claim process to holders of potential future claims by publishing advertisements in various newspapers around the country. For decades, bankruptcy debtors and other parties facing potential future tort claim liability have relied primarily on newspapers to provide “publication” notice to claimants… Continue reading Newspaper Notice to Unknown Creditors: Still the Only Process that is Due
The appropriateness of unbundling bankruptcy services to individual debtors has recently raised its head again in a case decided by the Ninth Circuit Bankruptcy Appellate Panel, DeLuca v. Seare (In re Seare), BAP No. NV-13-1196-KiTaJu. The case involved an attorney who agreed to represent a debtor in a Chapter 7 case for a flat fee,… Continue reading To Bundle or Unbundle: That is the Question.