ATexasBankruptcyLawyersBlog

Bidders Reimbursed For Auction Which Never Occurred: The Fifth Circuit's ASARCO Opinion

08/20/11
The Fifth Circuit has ruled that, under the facts of the specific case, that bidders could recover their costs without a showing of direct benefit to the estate. Matter of ASARCO LLC, No. 10-40930 (5th Cir. 8/16/11). The specific holding was that reimbursement of costs incurred in submitting a bid were governed by the business judgment standard under 11 U.S.C. Sec. 363(b) rather than the benefit to the estate standard under 11 U.S.C. Sec. 503(b).
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Court Orders Turnover of Attorney Files in Billion Dollar Case

08/13/11
Attorneys are entrusted with a lot of sensitive information. The attorney-client privilege exists to allow clients to speak candidly with their attorneys. However, when the same attorney represents multiple parties, the privilege may not be so absolute. In the case of In re Crescent Resources, LLC, No. 09-11507 (Bankr. W.D. Tex. 7/22/11), Bankruptcy Judge Craig Gargotta was asked to decide who could access the attorney files in a billion dollar dispute.
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En Banc Fifth Circuit Changes Course on Judicial Estoppel

08/12/11
In an important ruling, the Fifth Circuit Court of Appeals sitting en banc ruled that a debtor's nondisclosure would not bar a trustee from pursuing a large judgment for the benefit of creditors. Reed v. City of Arlington, No. 08-11098 (5th Cir. 8/11/11). The opinion overruled an earlier panel decision. You can read the new opinion here.
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Civil Rights Opinion May Affect Attorney's Fees in Bankruptcy

08/09/11
A decision reviewing attorney's fees in a complex Title VII class action may have repercussions for attorney's fees in bankruptcy cases as well. McClain v. Lufkin Industries, Inc., No. 10-40036 (5th Cir. 8/8/11). You can find the opinion here.

What Happened

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Meet Judge Mott

08/08/11

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Fifth Circuit Trusts (Chapter 7) Trustee's Interpretation of Trust

07/28/11
In an interesting ruling that has more to do with trust law than bankruptcy, the Fifth Circuit has ruled that a bankruptcy court incorrectly held that a trust was not property of the estate. Roberts v. McConnell, No. 10-50462 (5th Cir. 6/15/11). You can find the opinion here.
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Preserving Causes of Action In Plans

07/27/11

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Congressman Hinojosa's Bankruptcy Plan Appears to Violate Bankruptcy Code, Including BACPA Provisions He Voted For

07/24/11
Congressman Ruben Hinojosa was one of many representatives who voted for the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. As a chapter 11 debtor, he will now be tested to see whether must follow the same rules he voted for, as well as those previously in place. In re Ruben Hinojosa, Case No. 10-70900, pending in the United States Bankruptcy Court for the Southern District of Texas.
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Despite Bad Behavior By Wells Fargo, Court Finds That Broad Remedial Injunction Was Unwarranted

07/23/11
Despite clear cut abuse by a mortgage lender, the Fifth Circuit has found that a bankruptcy court lacked authority to enter a broad remedial injunction requiring Wells Fargo to conduct an extensive audit of claims filed in the Eastern District of Louisiana. Matter of Stewart, No. 09-30832 (5th Cir. 7/22/11). You can find the opinion here.
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