(United States Ninth Circuit) – In a bankruptcy action, the bankruptcy court’s determination that Eden Place, LLC violated the automatic stay provisions of the Bankruptcy Code by evicting debtor from a residential property is reversed where debtor had no legal or equitable interest in the property following an unlawful detainer judgment and writ of possession in state court.
(United States Second Circuit) – In a debt collection action arising from an underlying bankruptcy, the district court’s dismissal of plaintiff’s Fair Debt Collection Practices Act (FDCPA) claims is reversed where the Bankruptcy Code does not broadly repeal the FDCPA for purposes of FDCPA claims based on conduct that would constitute alleged violations of a discharge injunction.
(United States Second Circuit) – In a bankruptcy action, the bankruptcy court’s denial of appellant’s motion for reconsideration as to its claim against debtor is reversed and remanded with instructions to vacate the claim disallowance order and reinstate appellant claim.
(United States Second Circuit) – In a securities action seeking to enforce a $300 million disgorgement order, the district court’s freezing of defendants’ assets despite their filing for Chapter 11 bankruptcy protection is affirmed where the court’s asset freeze order fell within the “governmental unit” exception to the automatic stay provision of the Bankruptcy Code, 11 U.S.C. section 362.
(United States Second Circuit) – In an action arising out of the Lehman Brothers bankruptcies brought by underwriters seeking contribution and reimbursement from debtor, the district court’s order is affirmed where section 510(b) of the Bankruptcy Code, 11 U.S.C. section 510(b), subordinates claims or interests represented by an affiliate’s securities to all claims or interests senior or equal to claims in the bankruptcy proceedings that are of the same type as the underlying securities.
(United States Third Circuit) – In an involuntary bankruptcy action brought by a creditor seeking to recover a court judgment against debtor, the bankruptcy court’s dismissal of the petition as a bad faith filing is affirmed where: 1) an involuntary petition filed under 11 U.S.C. section 303 may be dismissed for bad faith; 2) bad faith determinations are made under the totality of the circumstances standard; and 3) the petition cannot be cured by adding a good faith creditor once the petition has been dismissed.
(United States Ninth Circuit) – In a bankruptcy action raising the question of attorney’s fees arising from debtor actions for damages when creditors violate the automatic stay on proceedings relating to pre-petition debts, as provided for in 11 U.S.C. section 362(k), the court reversed its holding in Sternberg v. Johnston, 595 F.3d 937 (9th Cir. 2010), and held that attorney’s fees are available for prosecuting an action for damages under the statute.
(United States Federal Circuit) – In a tax refund case for Federal Insurance Contribution Act (FICA) tax paid on certain deferred compensation, retirement benefits in this case, that plaintiff will never receive due to his employer’s bankruptcy, the Court of Federal Claims judgment denying a refund is affirmed where the Treasury regulation that defines “amount deferred” under 26 U.S.C. section 3121(v)(2)(A) (2000), definition prohibited any consideration of an employer’s financial condition (e.g., bankruptcy) in calculating the amount deferred, 26 C.F.R. section 31.3121(v)(2)-1(c)(2)(ii).
(United States Ninth Circuit) – In a bankruptcy action arising from debtors filing for Chapter 7 relief and Chapter 13 relief, the bankruptcy court’s order that debtors were entitled to the voidance of creditor HSBC’s lien under 11 U.S.C. section 506(d) is affirmed where 11 U.S.C. section 1328(f)’s bar on debtors receiving a Chapter 13 discharge within four years of a Chapter 7 discharge does not prevent the utilization of section 506(d)’s lien-voidance mechanism in the course of a Chapter 13 filing.
(United States Ninth Circuit) – In an action seeking to collect attorney’s fees incurred following a lender’s objection to debtor’s Chapter 13 bankruptcy plan under California’s reciprocal attorney fees law, Civil Code section 1717(a), the district court’s denial of the motion for attorney’s fees is reversed where the debtor’s successful defense against lender’s objection to her bankruptcy plan constitutes “prevailing on the contract” under section 1717(a) and entitles her to attorney fees under section 1717(a).