Bankruptcy Litigation

5th Circuit Jan 8, 2020

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A nonprecedential opinion applies Fifth Circuit authority to achieve a result that’s equitable for the debtor and creditors, and maybe also for a personal injury defendant.

Holding a Contempt Hearing May Be Ok, but the Remedy Might Violate Automatic Stay

A contempt hearing fell under the ‘criminal’ exception to the automatic stay, but jailing a debtor to coerce payment of a prepetition debt violated the stay, Judge Grossman ruled.

PACA Doesn’t Give Rise to Denial of Discharge for Defalcation, Chicago Judge Says

A PACA trust lacks the hallmarks of a trust, so a failure to pay a produce supplier doesn’t give rise to a nondischargeable debt for defalcation while acting in a fiduciary capacity, Judge Goldgar says.