In re: Giacchi

(United States Third Circuit) – In an appeal involving the issue of whether Internal Revenue Service Forms 1040, filed after the IRS has made an assessment of the taxpayer’s liability, constitute ‘returns’ for purposes of determining the dischargeability in bankruptcy of tax debts under 11 U.S.C. section 523(a)(1)(B), the district court’s judgment affirming the bankruptcy court’s order denying discharge of years covered by the 1040s is affirmed where: 1) debtor’s belated filings after assessment are not an honest and reasonable effort to comply with the tax law under the Beard test and, as such, the filings do not constitute returns; and 2) because debtor’s tax debts for tax years 2000, 2001, and 2002 are debts for tax obligations for which no return was filed, the debts are not dischargeable in bankruptcy pursuant to 11 U.S.C. section 523(a)(1)(B).

In re: Lehman Bros.

(United States Second Circuit) – In a Chapter 11 bankruptcy appeal by thousands of former employees of debtor who held restricted stock units that were rendered worthless after the filing, the district court’s judgment sustaining debtor’s objections to the claims, on grounds that the claims must be subordinated to the claims of general creditors pursuant to 11 U.S.C. section 510(b) because the former arise from the purchase or sale of securities, is affirmed where the claims at issue must be subordinated pursuant to 11 U.S.C. section 510(b) because, within the meaning of that statute: 1) restricted stock units are securities; 2) the claimants acquired them in a purchase; and 3) the claims for damages arise from that purchase or the asserted rescission thereof.

In re: The Trustees of Conneaut Lake PArk, Inc.

(United States Third Circuit) – In a bankruptcy case involving 40 Pa. Stat. section 638, which prohibits insurance companies from paying fire insurance proceeds to a ‘named insured’ unless the local municipality certifies that no delinquent taxes are owed on the property where the insured structure was located, the District Court’s judgment reversing the Bankruptcy Court grant of summary judgment to the Taxing Authorities and holding that ‘named insured’ as used in Section 638 includes only those who own the structure at issue and are responsible for the delinquent taxes, is reversed where this interpretation contravenes the text of the statute.

Privitera v. Curran

(United States First Circuit) – In a Chapter 7 liquidation proceeding involving a creditor-plaintiff’s attempt to avail herself of two exemptions from debt discharge, the bankruptcy court’s denial of plaintiff’s motion for leave to amend the complaint is affirmed where an adequate basis existed for the bankruptcy court’s denial of the plaintiff’s motion to amend: the new claim, like the old claim, would have been futile.

Porter v. Nabors Drilling USA, L.P.

(United States Ninth Circuit) – In a lawsuit asserting a claim under California’s Private Attorney General Act of 2004 (PAGA), the court grants defendant’s motion to recognize an automatic stay, triggered by its filing for reorganization under Chapter 11 of the Bankruptcy Code, where the exception to an automatic stay established in 11 U.S.C section 362(b)(4), described as the governmental regulatory or governmental unit exception, did not apply to a claim brought by a private party under PAGA.

In re Tronox Inc.

(United States Second Circuit) – In an appeal of a district court order enforcing a permanent anti‐suit injunction issued after a bankruptcy settlement, involving the toxic tort claims of than 4,300 individuals who allege significant injuries from the operation of a wood‐treatment plant in Avoca, Pennsylvania between 1956 and 1996, the appeal is dismissed for lack of jurisdiction where the claims are barred by the injunction because they are generalized ‘derivative’ claims that fall within the property of the bankruptcy estate.