In Re World Imports

(United States Third Circuit) – Reversing and remanding a Bankruptcy Court decision stating that constructive possession occurred when goods were shipped, finding that the creditor’s ability to recover as a priority administrative expense the value of goods received by the debtor within 20 days before the filing of a bankruptcy petition is limited to items in the physical possession of the buyer within that period. Because the goods at issue were received within this 20 day window the goods were subject to the bankruptcy despite having been shipped more than 20 days before the filing by common carrier.

Partida v. US Dept. of Justice

(United States Ninth Circuit) – Affirming the Bankruptcy Appellate Panel’s determination that the Bankruptcy Code’s automatic stay provision does not prevent the government from collecting criminal restitution under the Mandatory Victims Restitution Act.