Creditor With a Derivative Claim Has Standing to Sue, Fifth Circuit Says
Embezzlement from an LLC conferred standing to sue on an owner, not only on the LLC.
Fifth Circuit Rules on Judicial Estoppel, an Issue Before the Supreme Court This Term
Supreme Court will decide whether potential motive for nondisclosure invokes judicial estoppel, or whether there must be subjective intent by the debtor to conceal.
Ninth Circuit Will Sit En Banc to Decide Whether Trustees Have Qualified Judicial Immunity
The Ninth Circuit will sit en banc, presenting the possibility of a circuit split that could end up stripping bankruptcy trustees of qualified judicial immunity.
Cert. Granted on a Circuit Split About Judicial Estoppel for Undisclosed Claims
Amicus briefs are needed so the Supreme Court sees the big picture and understands that creditors can suffer if judicial estoppel is applied indiscriminately.
Does Truck Insurance Give Chapter 7 Debtors Standing to Mount Claim Objections?
The lack of ‘pecuniary interest’ may deprive a chapter 7 debtor of constitutional standing, even though the debtor is a ‘party in interest.’
Courts Must Use Inherent Powers for Sanctions on Pro Se Litigants, Eleventh Circuit Says
In a nonprecedential opinion, the Eleventh Circuit holds that 28 U.S.C. § 1927 may not be used to impose monetary sanctions on pro se litigants.
Panel Trustee’s Personal Misconduct Was Grounds for Removal for ‘Cause,’ BAP Says
The panel trustee had been found in state court to be a spousal abuser who lied in obtaining a Covid loan.
On a Split, Ninth Circuit BAP Holds: Misconduct in ‘11’ Doesn’t Prevent Conversion to ‘7’
Given that chapter 7 has remedies like denial of discharge for a debtor’s misconduct, bad faith in chapter 11 doesn’t allow dismissal on conversion to chapter 7.
A Disguised Loan Agreement Didn’t Create a ‘Fair Ground of Doubt’ Under Taggart
The Fifth Circuit undertook a legal analysis of a complex loan agreement to decide there was no ‘fair ground of doubt’ under Taggart that the lender was violating the discharge injunction.
Judicial Immunity Can Protect a Trustee when Barton Doesn’t Apply, Circuit Says
When a trustee mistakenly seizes a nondebtor’s property, the Barton doctrine by itself doesn’t protect the trustee, but judicial immunity does.