Public Rights Exception Permits Bankruptcy Court to Award Punitive Damages
Although a suit for punitive damages resembles a claim for which there would be a jury under common law, Pennsylvania’s Judge Mayer decided that the enactment of Section 362(k) gave rise to the public rights exception allowing bankruptcy courts to award damages without a jury.
Equity Won’t Extend the Deadline for Filing a Dischargeability Complaint
The circuits are split on whether equity can extend the 60-day deadline for filing dischargeability complaints.
Equitable Tolling Can Extend Statutes of Limitations Under Section 546(a)
Dilatory actions by a debtor tolled statutes of limitations for a trustee’s suit against a third party.
A Settlement Term Sheet Signed After Mediation Was an Enforceable Contract
The state law standards for creation of a contract governed enforceability of a term sheet signed after mediation.
Dismissal Isn’t Mandatory if a New Filing Is Within 180 Days of a Voluntary Dismissal
Courts are split on whether Section 109(g)(2) mandates dismissal whenever an individual or family farmer refiles within 180 days, regardless of whether a lift-stay motion prompted dismissal of the first case.
‘Earmarking’ Only Applies When a Debtor Receives a Loan from a Third Party
Money taken from a debtor’s own retirement account to pay a creditor does not qualify for the earmarking defense, Chief Judge Fehling says.
Another Example: Student Loans Are Virtually Impossible to Discharge
District court second-guesses the sufficiency of evidence that the bankruptcy court found sufficient.
Emotional Distress Damages Awarded for Civil Contempt on Automatic Stay Violation
Philadelphia judge socks the city’s parking authority for impounding a debtor’s car twice.
Look Forward 5 Years, Not 25, on Debtor’s Inability to Repay Student Loans, Judge Says
Term of the loan is the ‘relevant period’ for judging student loan dischargeability.
Insurance Companies Have Fewer Protections than Landlords and Aircraft Lessors
Absent special-interest legislation for bankruptcies, insurance companies remain in limbo.