ATexasBankruptcyLawyersBlog

Supreme Court Rules That Passive Retention Does Not Violate Stay

01/14/21

 The Supreme Court decided that a creditor which passively retains possession of estate property does not "exercise control" over such property in violation of 11 U.S.C. Sec. 362(a)(3). The Court viewed the word "exercise" to require active measures.  Case No. 19-357, Chicago v. Fulton (1/14/21), which can be found here.

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Fifth Circuit Resurrects Fraud Suit Based on Removal to Bankruptcy Court

12/15/20

 In a very convoluted case, a plaintiff learned that removal to Bankruptcy Court can result in a do-over of adverse state court rulings.  Cohen v. Gilmore (Matter of Alabama & Dunlavy), Case No. 19-20152 (5th Cir. 12/15/20).  While the Rooker-Feldman doctrine prohibits a federal court from re-examining findings in an unrelated state court case, it does not grant similar protections in a removed action for the reason that the removed action is a continuation of the original case, just with a different presiding court.

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A Few Thoughts on the Opinions of Amy Coney Barrett

09/30/20

 This post was originally intended to be about the bankruptcy jurisprudence of Supreme Court nominee Amy Coney Barrett. That would have been a very short post. She has been on panels which issued seven per curiam unpublished opinions in bankruptcy matters, none of which were very remarkable. Instead, I will look at three of her opinions dealing with consumer financial services and cases where she did not rule for law enforcement or employers,  traditional favorites of conservatives.

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Texas Sees Surge in Large Bankruptcy Filings

08/20/20

Texas lawyers have long bemoaned the tendency of large Texas-based companies to file bankruptcy in Delaware or New York. However, with the collapse in oil prices and the impact of Covid-19 on retail, many large companies are seeking to restructure in Texas. Since January, 36 groups of companies reporting at least $100 million in assets have filed Texas cases.

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Could Unpaid Cities File an Involuntary Bankruptcy Against Donald J. Trump for President, Inc.?

08/03/20
President Donald J. Trump knows a little something about bankruptcy. At least four of his casinos and hotels have filed voluntary reorganization petitions, but could his presidential campaign be placed into involuntary bankruptcy over unpaid security bills to cities? This hypothetical provides a great vehicle for discussing the mechanics of how an involuntary petition gets filed and the consequences arising from it.
Some Background
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Legal Blogger Beats Defamation Rap for Cheeky Headline

07/14/20

The Second Circuit has sided with a blogger who was sued for defamation for his headline "TCPA Class Certification Denial Exposes Major Spousal Scheme."  Wexler v. Dorsey & Whitney, LLP, 2020 U.S. App. LEXIS 21474 (2nd Cir. 7/9/20). While the case does not fall within the usual fare for this blog, I am always happy to write about another blogger.

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Tips for Virtual Practice

07/13/20

I have not been in a courtroom since the first part of March. Courts have adapted to life under Covid-19 with a combination of telephonic and video hearings. I have attended several CLE presentations on virtual court and have some observations of my own. Here are some tips.

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Texas Lawyer Escapes Sanction

05/26/20
In politics, it is sometimes said, what did the president know and when did he know it. As it turns out this analysis is helpful in determining whether a lawyer should face sanctions under Rule 9011 as well. In the case of In re Dernick, No. 18-32417 (Bankr. S.D. Tex. 5/22/20), the fact that "there [we]re a fair number of complex and confusing details at play" was enough to prevent the motion in question from being objectively frivolous.
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Third Circuit Allows Third Party Release on "Exceptional" Facts

04/08/20
Third party releases have long been a controversial feature of certain chapter 11 plans. They are neither specifically allowed nor prohibited by the plain language of the Bankruptcy Code. This has led courts to reach differing results. There are two important principles at play in these cases. On the one hand, bankruptcy exists to provide relief to debtors. On the other hand, bankruptcy plans are intended to provide the greatest possible return to creditors.
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A Case Study in How Judges Determine Witness Credibility

04/05/20

When a judge hears from multiple witnesses, he or she must make a decision on how much weight to give to what each witness says. Bankruptcy judges frequently make their credibility decisions a part of their opinions. This is both helpful to the parties and increases the likelihood that fact findings will not be found to be clearly erroneous on appeal.

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