Supreme Court

Supreme Court Rejects Fifth Circuit's Approach to Judicial Estoppel

06/24/26

 The Fifth Circuit has long applied judicial estoppel aggressively when a debtor fails to list a cause of action. It once held (in a panel opinion overruled by the en banc court) that a trustee was bound by a debtor's failure to disclose assets. Reed v. City of Arlington, 620 F.3d 477 (5th Cir. 2010), rev'd en banc 650 F.3d 571 (5th Cir. 2011).

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Farewell to Chevron Deference

07/08/24

One of the many controversial opinions coming from the Supreme Court at the end of its term was Loper Bright Enterprises v. Raimondo, No. 22-451 (6/28/24) which abolished what is known as Chevron deference.

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Supreme Court Nixes Non-Consensual Third-Party Releases

07/07/24

In an opinion that resolves decades of circuit court splits, the Supreme Court ruled against allowing nonconsensual third-party releases. Harrington v. Purdue Pharma, LP, No. 23-124 (6/27/24) which can be found here.  While the opinion is emphatic in its rejection of extra-textual plan provisions, the 5-4 ruling and numerous caveats mean this won't be the last time creative lawyers will be testing the limits of the Code.

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Grammar Dooms Innocent Spouse in Non-Dischargeability Case

02/23/23

While we often recite that bankruptcy is for the honest but unfortunate debtor, a new case from the Supreme Court shows that getting into bed or business with the wrong person can lead to a non-dischargeable debt for an innocent spouse. The case is No. 21-908, Bartenwerfer v. Buckley, which you can find here.

What Happened

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A Look at the Jurisprudence of Judge Ketanji Brown Jackson (Bankruptcy and Otherwise)

03/04/22

Supreme Court nominee Judge Ketanji Brown Jackson has played a variety of roles in her legal career. She has been a public defender, an attorney in private practice, a member of the U.S. Sentencing Commission, a U.S. District Judge and a Court of Appeals Judge. Unfortunately, these jobs have given her scant exposure to bankruptcy law. I will explore all three of her bankruptcy related opinions (out of a total of about 600) as well as a handful of her other jurisprudence.

A Small Exposure to Bankruptcy

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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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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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Supreme Court Set to Hear Passive Stay Violation Case

12/29/19
Seeking to resolve a 5-3 split among the Courts of Appeals, the Supreme Court will consider whether a creditor which passively retains property of the estate violates the automatic stay.  Case No. 19-357, City of Chicago v. Fulton. The Second, Seventh, Eighth, Ninth and Eleventh Circuits have ruled that retaining possession or control of property of the debtor violates the stay. The Third, Tenth and D.C.
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