ATexasBankruptcyLawyersBlog

Fifth Circuit Report: 2nd Quarter 2018

10/01/19

Franchise Services of North America v. United States Trustee (In re Franchise Services of North America), 891 F.3d 198 (5th Cir. 5/22/18)

This is easily the most important case of the quarter.   It involves whether a debtor may circumvent normal corporate governance provisions to file a voluntary petition.   In this case, the answer was no.

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When Not to Approve a Compromise

09/30/19
Compromises are favorites of the law.   A compromise and settlement can avoid expensive litigation and as more than one judge has pointed out, the deal that the parties make will generally be better for them than the ruling the court provides.  However, bankruptcy involves many stakeholders so that when two parties reach a settlement which affects rights of the estate, the parties must go to the court for approval of their compromise under Fed.R.Bankr.P. 9019.   
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The Undue Hardship Test Is Really Harsh

09/24/19
The Fifth Circuit has released a new opinion which underscores just how hard it is to discharge a student loan under the undue hardship standard.   Thomas v. Department of Education (In re Thomas), 931 F.3d 449 (5th Cir. 2019).    
A Sympathetic Debtor
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Beware the Living Trust! You May Lose Your Homestead

09/16/19
A living trust is a legal document that states who you want to manage and distribute your assets if you're unable to do so, and who receives them when you pass away.
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Texas Bankruptcy Court Rejects Claim That Attorneys Were Non-Statotory Insiders

05/14/19
Last year, the Supreme Court ruled on a case involving a claim that a party was a non-statutory insider without ever deciding what legal test should apply.   U.S. Bank National Association v. The Village at Lakeridge, LLC, 138 S.Ct.
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Fifth Circuit Rules In Favor of Attorney Immunity

04/29/19
When dealing with contentious litigation, I have occasionally had a client ask why we can't sue the opposing lawyer.  When I try to explain that the other lawyer is merely representing his client, I get a tirade about how evil the other attorney is.   The better answer, as shown by a recent Fifth Circuit opinion, is attorney immunity.    Case No. 17-11464, Troice v. Greenberg Traurig, LLP (5th Cir. 4/17/19).
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Fifth Circuit Resolves Multi-State Perfection Puzzle

04/23/19
In a lesson that the Uniform Commercial Code is not always uniform between various states, the Fifth Circuit resolved a lien priority dispute pertaining to a Texas debtor who brought agricultural products in Oregon, Michigan and Tennessee.    The opinion in a valuable primer in choice of law issues in UCC cases as well as how failure to strictly comply with state statutes can lead to loss of lien priority.   Fishback Nursey, Incorporated v.
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NCBJ San Antonio: Highlights of Day 3

11/01/18

The final day of this year's NCBJ only included two panels so I don't need an introduction.

Twelve Years of Turbulence:  Keynote by Gary Kennedy and Terry Maxon

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NCBJ San Antonio: Highlights of Day 2

10/31/18
On Day 2 of NCBJ San Antonio, I went for a run, laughed at a musical about ethics, listened to a debate over equitable mootness, went to a fraudulent conveyance program and listened to an economist predict the next recession.

An Early Morning Run and an Opportunity to Give Back

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NCBJ San Antonio: Highlights of Day 1

10/29/18
NCBJ 2018 opened in the historic Lila Cockrell Theater with current NCBJ president Judge Michael Romero belting out a welcome in song adapted from Cabaret.
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