News/Resources

Bankruptcy Year in Review 2017

Bankruptcy Law: 2017 Year in Review 
San Diego County Bar Association (SDCBA) 
Presented by Dennis Wickham February 22, 2018

Click here to access this presentation on-demand for MCLE participatory credit.

 

 

UNITED STATES SUPREME COURT

Czyzewski v. Jevic Holding Corp
137 S.Ct. 973,  197 L.Ed.2d 398 (2017)

(Justice Stephen Breyer) Bankruptcy court should deny structured dismissals of Chapter 11 cases providing for distributions that do not conform to the Code (absent consent).

Henson v Santander Consumer USA, Inc.
137 S. Ct. 1718,  197 L.Ed.2d 177 (2017)

(Justice Neil Gorsuch) Purchaser of debt is not a debt collector under the FDCPA.

Midland Funding LLC v Johnson
137 S. Ct. 1407,  197 L.Ed.2d 790 (2017)

(Justice Stephen Breyer) FDCPA does not prohibit filing a proof of claim for a debt beyond the applicable statute of limitations.

 

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

Bank of New York Mellon v Watt
867 F.3d 1155 (9th Cir. 2017)

(Circuit Judge Marsha Berzon)  Court lacks jurisdiction to hear appeal from district court order vacating (and remanding) bankruptcy court’s order confirming Chapter 13 plan. 

In re Barker
839 F.3d 1189 (9th Cir. 2017)

(Circuit Judge N.R. Smith) Chapter 13Debtor’s schedules do not relieve creditor of duty to file a proof of claim, and bankruptcy court lacked equitable power to extend deadline after the fact.

Blixeth v Yellowstone Mt. Club, LLC
841 F.3d 1090 (9th Cir. 2017)

(Circuit Judge Alex Kozinski) Sanctions against party and party’s counsel for frivolous appeal includes fees for pursuing sanctions under 28 USC 1927 (multiplies proceedings unreasonably and vexatiously), but not for sanctions under FRAP Rule 38.

Burton v Infinity Capital Management
862 F.3d 740 (9th Cir. 2017)

(Chief Circuit Judge Sidney Thomas) Creditor’s counsel not entitled to quasi-judicial immunity for state court proceedings in violation of automatic stay.

In re Cherrett
873 F.3d 1060 (9th Cir. 2017)

(Circuit Judge Morgan Christen) Employer’s housing loan as part of employee’s compensation package to induce employee to relocate is a non consumer debt for purpose of motion to dismiss under section 707(b)..

In Re CWS Enterprises, Inc.
870 F.3d 1106 (9th Cir. 2017)

(Circuit Judge Andrew Kleinfeld) Fee arbitration award confirmed by state court judgment was res judicata as the reasonable value cap on claim of debtor’s attorney under section 502(b)(4).

In re DBSI, Inc.
869 F.3d 1004 (9th Cir. 2017)

(Circuit Judge Richard Paez)  Bankruptcy trustee can avoid Ponzi debtor’s federal tax payment as fraudulent transfer under applicable state law even though private creditor could not.

In re Dingley
852 F.3d 1004 (9th Cir. 2017)

(Circuit Judge Richard Paez)  Civil contempt proceeding is exempt from the automatic stay under the government regulatory exemption.

In re DZ Bank AG etc v Meyer
869 F.3d 839 (9th Cir. 2017)

(Circuit Judge Richard Paez)  Fraudulent transfers directly and indirectly by the debtor rendered the entire debt nondischargeable, not limited by the value of the lender’s collateral transferred directly by the debtor. 

In re Gugliuzza, II.
852 F.3d 884 (9th Cir. 2017)

(Circuit Judge Sandra Ikuta)  Ninth Circuit lacks jurisdiction to hear appeal from District Court order reversing and remanding bankruptcy court order granting summary judgment to creditor in discharge adversary proceeding.

In re Khan
846 F.3d 108 (9th Cir. 2017)

(Circuit Judge Ferdinand Fernandez) Creditor claim for wrongful conversion of stock of an affiliate of the debtor is not subject to mandatory subordination under section 510(b).

In re Gugliuzza, II.
852 F.3d 884 (9th Cir. 2017)

(Circuit Judge Sandra Ikuta)  Ninth Circuit lacks jurisdiction to hear appeal from District Court order reversing and remanding bankruptcy court order granting summary judgment to creditor in discharge adversary proceeding.

In re Kupfer
852 F.3d 853 (9th Cir. 2017)

(Circuit Judge Susan Graber) Lessor’s claim for attorneys fees and costs were not subject to cap of section 502(b)(6) as to tenant’s counterclaims and claims for pre-termination rent.

In re Mainline Equipment, Inc.
865 F.3d 1179 (9th Cir. 2017)

(Circuit Judge Kim Wardlaw)  Statutory county tax lien on debtor’s personal property unenforceable against hypothetical b.f.p. under California law.

In re Milby
875 F.3d 1229 (9th Cir. 2017)

(Circuit Judge Jay Bybee)  Post-discovery delay by trustee in asserting fraudulent transfer claim is relevant to issue of equitable tolling.

In re Partida
862 F.3d 909 (9th Cir 2017)

(Circuit Judge Mary Schroeder)  Automatic stay does not apply to government action to collect criminal restitution under Mandatory Victims Restitution Act.

In re Reynolds
867 F.3d 1119 (9th Cir. 2017)

(Per Curium)  Trustee entitled to full amount of principal due and 25% of future principal payments to beneficiary of spendthrift trust under California law.

Based on California Supreme Court opinion on certified question:

Carmack v. Reynolds
2 Cal.5th 844  (2017)

In re Salamon
854 F3d. 632 (9th Cir. 2017)

(Circuit Judge Mary Schroeder)  After nonjudicial foreclosure, sold out lender does not have a recourse claim under section 1111(b).

In re Spanish Peaks Holding II, LLC
872 F.3d 892 (9th Cir. 2017)

(District Judge Frederic Block).  Trustee could sell property free and clear of unexpired lease.

In re Sterba
852 F.3d 1175 (9th Cir. 2017)

(Circuit Judge Wallace Takashima)  Choice of law provision in note governs statute of limitation, not law of state where bankruptcy is filed.

In re Sunnyslope Housing, Ltd. Partnership
859 F.3d 637 (9th Cir. 2017)

(En banc)  Valuation of secured creditor’s collateral under cram down plan properly considered covenants restricting use of property for low income housing.

In re Tenderloin Health
849 F.3d 1231 (9th Cir. 2017)

(Circuit Judge Milan Smith)  Bankruptcy court may consider other hypothetical avoidances in determining whether creditor receiving preference would have received the same amount in liquidation.

In re Walldesign
___ F.3d ___ (9th Cir. 2017)

(Circuit Judge Jaqueline Nguyen)  Creditor receiving misappropriated funds from debtor corporation’s principal were initial transferees.

Weil v. Elliott
859 F.3d 812 (9th Cir. 2017)

(Circuit Judge Paul Watford)  One year deadline to revoke a debtor’s discharge is a statute of limitation, not jurisdictional.

 

UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF CALIFORNIA

In re Rodriquez
568 B.R. 328  (Bankr. S.D.Cal 2017)

Auto insurer’s subrogation claim for debtor’s conversion of motor vehicle is nondischargeable.

March 29th, 2018  |  Categories: Business Insolvency & Creditors’ Rights