Circuit Judge Questions Applicability of Veil Piercing and Alter Ego to Trusts
Sixth Circuit upholds dismissal of claims for reverse veil piercing and reverse alter ego.
Technicalities Insulated a Lawyer from Liability for Misusing an IOLA
A creditor lost a dischargeability suit by failing to call the right witnesses to prove that a lawyer’s trust account was used to hide assets.
Debt of $46,000 Discharged Despite a Flagrantly False Loan Application
Even though the debtor defaulted, Judge Christopher Klein held a trial and ruled that the lender had not relied on a false loan application.
Fifth Circuit Stretches Equitable Notions to Bend Plain Language
A nonprecedential opinion applies Fifth Circuit authority to achieve a result that’s equitable for the debtor and creditors, and maybe also for a personal injury defendant.
Law v. Segal Allowed a Fraudster to Retain $30,000
Eighth Circuit was compelled to overrule its own precedent that permitted the bankruptcy court to bar a debtor from amending schedules based on bad faith.
First Circuit Starkly Holds that Tuition for an Adult Child Is a Fraudulent Transfer
The case in the appeals court apparently did not involve a student account structured to prevent the college from being the initial recipient of a fraudulent transfer.
Fifth Circuit Muses on the Split over Pleading Standards for Fraudulent Schemes
Fifth Circuit generally holds that heightened pleading standards in Rule 9(b) do not apply to claims that don’t rely on fraudulent activity, even though the overall scheme may be fraudulent.
Bankruptcy Judge OKs Four Years of Jailing for Civil Contempt
An appellate court will decide whether four years of jailing means that civil incarceration has become futile.