HHR Bankruptcy Report

Category Archives: SCOTUS

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Time-Barred Bankruptcy Proofs of Claim Violate FDCPA: Supreme Court Grants Certiorari to Eleventh Circuit Case Johnson v. Midland Funding, LLC

Posted in Bankruptcy Claims, Creditors' Rights, Eleventh Circuit, FDCPA, SCOTUS
On October 11, 2016, the United States Supreme Court granted certiorari to a debt collection agency in its appeal from the Eleventh Circuit case Johnson v. Midland Funding, LLC.[1] In Johnson, the Eleventh Circuit affirmed its decision in Crawford v. LVNV Funding, LLC,[2] which held that a debt collector violates the Fair Debt Collection Practices… Continue Reading

SCOTUS Grants Cert in Jevic

Posted in Chapter 11, SCOTUS, Third Circuit
Yesterday, the Supreme Court granted certiorari in Czyzewski v. Jevic Holding Corp (“Jevic”). As previously reported, Jevic addressed whether a bankruptcy court can approve a settlement agreement that provides for distributions that violate the absolute priority rules as part of the structured dismissal of a chapter 11 proceeding. The Third Circuit held that such structured… Continue Reading

Solicitor General Sides With Priority Creditors In Recent Amicus Brief

Posted in Chapter 11, SCOTUS, Section 1112, Third Circuit
Last summer, the HHR Bankruptcy Report analyzed the Third Circuit’s ruling in Official Committee of Unsecured Creditors v. CIT Group/Business Credit Inc. (In re Jevic Holding Corp.),[1] which approved, as part of the structured dismissal of a chapter 11 proceeding, a settlement agreement that allowed distributions that violated the absolute priority rule.  Following the Third… Continue Reading

Fraud is Broad: SCOTUS Declines to Accept Narrow Interpretation of “Actual Fraud” in 11 U.S.C. § 532(a)(2)(A)

Posted in Fifth Circuit, SCOTUS, Section 523(a)(2)(A)
Last November, the HHR Bankruptcy Report reported on the Supreme Court’s grant of the petition for certiorari in Husky International Electronics, Inc. v. Ritz, a case in which the Fifth Circuit had held that “actual fraud” under section 523(a)(2)(A) of the Bankruptcy Code (which limits the breadth and effect of a debtor’s discharge) required proof… Continue Reading

What Constitutes Fraud in Bankruptcy? SCOTUS To Resolve First And Fifth Circuit Split In 2016

Posted in Fifth Circuit, First Circuit, Fraudulent Transfer, SCOTUS
Earlier this month the Supreme Court granted certiorari to hear the Fifth Circuit case Husky International Electronics, Inc. v. Ritz, which originated in the United States Bankruptcy Court for the Southern District of Texas. The Fifth Circuit’s decision interprets “actual fraud” in the context of an exception to a debtor’s discharge that would require a… Continue Reading

The Reach of Bankruptcy Courts

Posted in Fourth Circuit, SCOTUS, Stern v. Marshall
In the beginning of the opinion he wrote for Stern v. Marshall, Chief Justice Roberts referenced Charles Dickens’ Bleak House, in which Dickens gives a grim description of a lawsuit litigated in a foggy courtroom.[1] In resolving the tumultuous Stern dispute, the Supreme Court created a new fogginess in bankruptcy courtrooms as to the exact… Continue Reading

In Recent Ruling, SCOTUS Preserves Junior-Lien Lenders’ Secured Claims

Posted in Bankruptcy Claims, Chapter 11, Claims Subordination, SCOTUS
On June 1, 2015, the U.S. Supreme Court issued its decision in Bank of America v. Caulkett.[1] The Court’s unanimous opinion, which was written by Justice Thomas, established that junior mortgage lienholders maintain a “secured” claim against a bankrupt debtor even where the junior mortgage lien is completely underwater. Further, an underwater junior mortgage lien… Continue Reading

SCOTUS Holds That Bankruptcy Courts Have Jurisdiction In Stern Claims

Posted in Article III, SCOTUS, Stern v. Marshall
In Wellness International Network v. Sharif, the Supreme Court recently weighed in again on the scope of a bankruptcy court’s jurisdiction, holding in a 6-3 opinion that Article III authorizes bankruptcy judges to exercise judicial power over Stern claims (claims that challenge a bankruptcy court’s power to enter final judgment on a case) when the… Continue Reading

Supreme Court Concludes That Orders Denying Confirmation Of A Bankruptcy Plan Are Not Final For Purposes Of Appeal, Resolving Circuit Split

Posted in Chapter 11, Chapter 13, Plan Confirmation, SCOTUS
As previously reported, on December 12, 2014, the Supreme Court granted certiorari on an appeal from the decision of the First Circuit Court of Appeals in Bullard v. Hyde Park Savings Bank, to resolve a circuit court split regarding whether an order denying confirmation of a bankruptcy plan is a final order appealable as of… Continue Reading

Supreme Court To Resolve Circuit Split On Finality Of Orders Denying Confirmation Of A Bankruptcy Plan

Posted in Chapter 11, Chapter 13, Plan Confirmation, SCOTUS
On December 12, 2014, the Supreme Court agreed to hear an appeal of the ruling in Bullard v. Hyde Park Savings Bank (In re Bullard), 752 F.3d 483 (1st Cir. 2014) to resolve a circuit court split regarding whether an order denying confirmation of a bankruptcy plan is a final order appealable as of right… Continue Reading

Supreme Court Hears Bankruptcy Court Jurisdiction Arguments In Wake of Stern v. Marshall

Posted in Chapter 7, SCOTUS, Seventh Circuit
Earlier this month the Supreme Court held oral argument on an appeal arising out of the Seventh Circuit Court of Appeals that revisits the thorny and frequently litigated issue of bankruptcy court jurisdiction post-Stern v. Marshall. In Wellness Int’l Network v. Sharif, the Seventh Circuit Court of Appeals held that (i) a bankruptcy court lacks… Continue Reading

Relying on Stern v. Marshall, Supreme Court Upholds Ninth Circuit Decision

Posted in Article III, Ninth Circuit, SCOTUS, Stern v. Marshall
In a unanimous opinion written by Justice Clarence Thomas, the Supreme Court today upheld a Ninth Circuit decision allowing a bankruptcy court to issue proposed findings of fact and conclusions of law on issues outside their constitutional jurisdiction for de novo review by the district court.  As previously reported here, the Supreme Court was presented… Continue Reading

Law v. Siegel Reversal: What was the Government Thinking?

Posted in SCOTUS
With a short opinion by Justice Scalia, the U.S. Supreme Court this week unanimously reversed a Ninth Circuit decision that permitted the use of Bankruptcy Code Section 105(a) to impose an “equitable surcharge” on a debtor’s exempt assets to pay administrative costs, notwithstanding a Bankruptcy Code provision stating that exempt property “shall not be liable”… Continue Reading

Argentina Files Petition to the U.S. Supreme Court

Posted in Argentina, Foreign Sovereign Immunities Act, SCOTUS, Second Circuit, Sovereign Debt
On February 18, 2014, Argentina filed a petition asking the United States Supreme Court to review the Second Circuit’s decision affirming the District Court’s decision requiring Argentina to pay a group of holdout bondholders (called “vulture funds” by Argentina’s counsel) 100% of the monies owed to them.  As we discussed here, here, and here, the… Continue Reading

Supreme Court Hears Oral Arguments in Executive Benefits Case Testing the Scope of Stern

Posted in Article III, Ninth Circuit, SCOTUS
On January 14, 2014, the Supreme Court heard oral arguments in Executive Benefits Insurance Agency v. Arkison, which revisits the issue of constitutional limits on federal bankruptcy judges’ power that the Supreme Court addressed two years ago in Stern v. Marshall.  The petition for certiorari challenged a Ninth Circuit decision and presented two questions to… Continue Reading

Supreme Court Will Hear Argentina’s Appeal of Discovery Orders

Posted in Argentina, Cross-Border Restructuring, SCOTUS, Sovereign Debt
On January 10, 2014, the Supreme Court agreed to hear Argentina’s appeal of the Second Circuit’s decision allowing “holdout” bondholders to subpoena banks for information about Argentina’s assets.  EM Ltd. v. Republic of Argentina, 695 F.3d 201 (2d Cir. 2012), cert. granted, Case No. 12-842, 2014 LEXIS 15 (Jan. 10, 2014).  In the lower courts… Continue Reading

Law v. Siegel: Oral Argument Suggests Unusual Alignment of Stars

Posted in SCOTUS
On January 13, 2014, oral argument before the Supreme Court produced a spirited session, as seven Justices took an active role in questioning, with only Justices Thomas and Scalia remaining on the sidelines.  As counsel for the petitioner/debtor, respondent/trustee and the Solicitor General (“SGO”) as amicus (supporting affirmance) were peppered with questions, the express language… Continue Reading

Law v. Siegel: From Tiny Acorns

Posted in SCOTUS
The scope of Bankruptcy Court powers is again before the Supreme Court this term, although no former Playmates or wealthy octogenarians are involved this time around.  The Court granted certiorari to review the Ninth Circuit’s decision, Law v. Siegel, which affirmed use of Bankruptcy Code Section 105 to “surcharge” the exempt homestead property of an… Continue Reading

Supreme Court Refuses to Hear Argentina’s Appeal

Posted in 28 USC section 1602 et seq., Argentina, Chapter 11, Foreign Sovereign Immunities Act, SCOTUS, Sovereign Debt
On October 7, 2013, the Supreme Court issued an order denying Argentina’s petition for a writ of certiorari on the interim decision of the Second Circuit that Argentina violated the contractual provision that all bondholders must be treated equally (discussed here and here). The Supreme Court’s decision comes on the heels of an October 3,… Continue Reading