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Third Circuit Affirms Bankruptcy Court Retention of Jurisdiction to Resolve Dispute Despite Arbitration Provision

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The Third Circuit, in a nonprecedential opinion in FBI Wind Down, Inc. Liquidating Trust v. Heritage Home Group, LLC (In re FBI Wind Down Inc.), Case No. 17-2315 (3d Cir. July 27, 2018), recently held that the bankruptcy court retained jurisdiction over the parties’ dispute that centered on the definition of terms in a court-approved asset purchase agreement because the claims fell outside the scope of an arbitration provision in the agreement.

What Happened?

USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP
You’ve Got Contract: An Email Establishes Binding Settlement in the Second Circuit

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USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Second Circuit
Delaware Bankruptcy Court Dismisses Committee’s Complaint Challenging Portion of Credit Bid

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USA, Delaware, Banking, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Fourth Amendment, US District Court for District of Delaware
Texas Court Declines to Adopt Rule Holding Violation of Law Is Per Se Bad Faith in Fraudulent Transfer Actions

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The District Court for the Northern District of Texas recently held in Segner v. Ruthven Oil & Gas, LLC, No. 3:12-CV-1318-B, 2018 WL 3155827 (N.D. Tex. June 28, 2018) that failure to comply with a disclosure law when documenting a transaction does not deprive a defendant in a fraudulent transfer action from asserting a good faith defense.

What Happened?

USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, US District Court for Northern District of Texas
Bankruptcy Court Holds That Termination of Lease Does Not Equal Termination of Estate Property

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USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP
Delaware Bankruptcy Court Upholds Bankruptcy Code Pre-emption Invalidating Pre-Petition Claims as Part of Post-Petition KERP

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USA, Delaware, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP
Supreme Court Is Asked To Leave Its Mark On Trademark Licensee’s Rights in Bankruptcy

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USA, Insolvency & Restructuring, Litigation, Trademarks, Kramer Levin Naftalis & Frankel LLP, First Circuit
Ninth Circuit Affirms Creditors’ Ability to Buy Blocking Position of Unsecured Claims

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USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Ninth Circuit
U.S. Supreme Court Holds that Debtor’s False Oral Statement Concerning Single Asset Does not Provide Basis for Non-dischargeability Action

On June 4, 2018, the U.S. Supreme Court decided the case of Lamar, Archer & Cofrin, LLP v. Appling, No. 16-1215, which dealt with the dischargeability of debt in bankruptcy proceedings. The Court held that a statement about a single asset can be a “statement respecting the debtor’s financial condition” under section 523(a)(2) of the Bankruptcy Code.

Background Facts

USA, Insolvency & Restructuring, Litigation, Foster Swift Collins & Smith PC, Supreme Court of the United States
Sixth Circuit Court of Appeals Holds that Penalties Associated with Michigan Unemployment Benefits Fraud are Non-dischargeable in Chapter 13 Bankruptcy Cases

In a recent opinion, the U.S. Court of Appeals for the Sixth Circuit (the “Court”) ruled that penalties assessed by the state of Michigan against two debtors, stemming from fraud associated with the wrongful receipt of Michigan unemployment benefits, are non-dischargeable in Chapter 13 bankruptcy pursuant to Bankruptcy Code § 523(a)(2).1

Background Facts

USA, Employment & Labor, Insolvency & Restructuring, Litigation, Foster Swift Collins & Smith PC, Bankruptcy, Unemployment benefits, Sixth Circuit