Rosenberg v. DVI Receivables XVII LLC

(United States Third Circuit) – In an appeal presenting a question of federal preemption law, in which defendants filed involuntary bankruptcy petitions against plaintiff’s husband that were later dismissed by the Bankruptcy Court, the District Court’s dismissal of this complaint for tortious interference under state law for damages allegedly caused by the filing of the involuntary petitions, is reversed where 11 U.S.C. section 303(i) does not preempt the state law claims of non-debtors predicated on the filing of an involuntary bankruptcy petition.

Higgins

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In re Berkeley Delaware Court, LLC

(United States Ninth Circuit) – In a bankruptcy action, the district court’s dismissal of the appeal as moot under 11 U.S.C. section 363(m) is affirmed. The Court held that: 1) a bankruptcy court has discretion to apply the procedures of section 363(m) to a sale of claims pursuant to a settlement approved under Bankruptcy Rule 9019; and 2) the bankruptcy court below did not clearly err in concluding that the creditor was a good faith purchaser of the debtor’s claims.

In re Del Biaggio III

(United States Ninth Circuit) – In a bankruptcy action, arising from a dispute between owners of the National Hockey League’s Nashville Predators, and involving a general unsecured claim for damages against debtor’s estate, the bankruptcy court’s grant of summary judgment to the estate is affirmed where the subordination of claims arising from the purchase or sale of the security of a debtor to other senior and equal claims under 11 U.S.C., section 510(b) applies where the debtor is an individual.

Coles v. Glaser

(California Court of Appeal) – In contracts action, arising after plaintiff’s recovery on a settlement agreement with defendants was surrendered as a preferential payment after one declared bankruptcy, the trial court’s entry of judgment for plaintiff is affirmed where a debt of a contractual co-obligor is not extinguished by another co-obligor’s pre-bankruptcy payment to a creditor that is later determined to be a bankruptcy preference.

Rivera v. Orange County Probation Dep’t

(United States Ninth Circuit) – In a debtor’s motion to sanction Orange County for persisting post-discharge in its efforts to collect a debt arising from the debtor’s son’s involuntary juvenile detention, the Bankruptcy Appellate Panel’s affirmation of the bankruptcy court’s denial of the motion is reversed where the debtor’s liability for the costs of support of her son while in detention was not a ‘domestic support obligation’ and thus was not excepted from discharge in bankruptcy under 11 U.S.C. section 523(a)(5).