Willful Stay Violation Can Justify Damages for Emotional Distress, Third Circuit Says
For an ‘egregious’ stay violation, medical evidence of emotional distress is not required.
State Law Determines Whether Post-Filing Mechanic’s Liens Are Voidable
Bankruptcy courts can enter final orders voiding mechanic’s liens, Third Circuit says.
A Proper Foreclosure Sale Can Never Be a Preference, Judge Holds
Despite gaining more than through chapter 7, purchasing at foreclosure is no preference.
Insurance Companies Have Fewer Protections than Landlords and Aircraft Lessors
Absent special-interest legislation for bankruptcies, insurance companies remain in limbo.
Bankruptcy Powers Do Not Override Congressionally Mandated Internet Confidentiality
Third party’s emails are immune from discovery in bankruptcy, Judge Sontchi rules.
Arbitration Agreements Held Unenforceable in WARN Act Litigation
Delaware’s Judge Shannon protects workers’ rights, disagreeing with some circuit courts.
Trustee Not Obligated to Obtain Best Price at Auction, Delaware Judge Says
Immunity, fiduciary duty and damages discussed in the context of a low sale price.
Punitive Damage Claim from Involuntary Dismissal Brings Jury Trial Rights
Section 303(i)(2) claim, similar to malicious prosecution, invokes Seventh Amendment jury trial rights.
Third and Ninth Circuits Split on Preemption of Non-Debtor Claims by Section 303(i)
Judge Ambro allows non-debtors to sue for damages from dismissal of involuntary petition.
Plan Permitted to Stretch Out Redemption Payments Following a Tax Sale
Courts split on whether failure to redeem on time is fatal in a reorganization.