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Supreme Court to Consider Pro Se Challenge to Exemption Surcharge

In an unusual move, the Supreme Court granted cert yesterday to consider the petition of a California man who filed a pro se petition for cert seeking to review the decision of a bankruptcy court to surcharge his homestead exemption under section 105. No. 12-5196, Law v. Siegel . The petition for...

U.S. Supreme Court to Rule on Bankruptcy Judges’ Power in ‘Core’ Proceedings

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on June 24 granted certiorari in a case dealing with the questions of whether Article III of the U.S. Constitution permits the exercise of the judicial power of the United States by bankruptcy courts on the basis of litigant consent and whether...

Pfizer Faces Asbestos Actions after Supreme Court Declines to Hear Case

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on June 24 denied a bid for certiorari by Pfizer Inc. of a ruling removing the protection for Pfizer of a bankruptcy injunction barring asbestos personal injury claims entered in the case of a defunct Pfizer subsidiary ( Pfizer Inc. v. Law...

U.S. High Court Will Not Hear Bankruptcy Case Dealing with Fraudulent Transfers

WASHINGTON, D.C. — (Mealey's) The U.S. Supreme Court on Oct. 7 refused to hear a case in which the 10th Circuit U.S. Court of Appeals had affirmed that fraudulently transferred property is not part of a bankruptcy estate until it is recovered ( Eric C. Rajala v. Robert H. Gardner, et al , No...

Supreme Court Will Not Hear Bankruptcy Case Dealing with ‘New Value’ Defense

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court on Oct. 7 refused to hear a case in which a Chapter 7 trustee argued that a bankruptcy estate should be permitted to recover more than $1.37 million that an insurance company received from a debtor company because the insurer failed to...

U.S. High Court To Rule On Bankruptcy Exemption For Inherited Retirement Accounts

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court on Nov. 26 granted certiorari in a case in which a debtor couple contend that high court review is needed to settle a split in the circuit courts regarding whether Chapter 7 debtors are permitted to exempt money in an inherited individual...

American Bankruptcy Institute Supreme Court Preview: Appellate Advocate Eric Brunstad Speaks with ABI Resident Scholar Kara Bruce about Upcoming Bankruptcy Cases

With the Supreme Court due to hear oral argument on a critical bankruptcy case on January 14, ABI has released the following free video preview of the upcoming High Court bankruptcy cases. This 75-minute program features ABI Resident Scholar Kara Bruce talking with noted appellate advocate and law professor...

Professor Kenneth N. Klee on the Supreme Court's Holding in Law v. Siegel

Professor Kenneth Klee analyzes the March 4, 2014 Supreme Court ruling in Law v. Siegel which held that a bankruptcy court exceeds its authority when it permits a surcharge on a debtor's otherwise exempt assets to pay administrative expenses incurred as a result of a chapter 7 debtor's misconduct...

U.S. Supreme Court Will Not Hear Bankruptcy Lien Case Brought by Bank of America

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court today said it would not hear a case in which Bank of America had argued that the high court needed to resolve a split at the federal appellate level dealing with whether a Chapter 7 debtor may “strip off,” or void, a valid junior...

U.S. Supreme Court Court Will Not Hear Debt Payment Case Involving American Airlines

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court today declined to hear a case in which U.S. Bank Trust NA (U.S. Bank) argued that bankrupt AMR Corp., the parent company of American Airlines Inc., owed its bondholders a penalty fee related to the repayment of debt for which it had obtained...

Hopelessly Confused SLUSA Issues for Ponzi Scheme Victims Following Troice?

As reported in The Ponzi Scheme Blog , the Supreme Court recently issued an important decision further defining the boundaries of SLUSA – the Securities Litigation Uniform Standards Act of 1998. Chadbourne & Park LLP v. Troice , 2014 U.S. LEXIS 1644 (Feb. 26, 2014) [ an enhanced version of...

Did the Second Circuit Get SLUSA Right in the Madoff Ponzi Scheme Case?

In a very short and summary opinion, the Second Circuit concluded that nothing in a recent Supreme Court decision gave it any reason to revisit its prior ruling that SLUSA bars state law class action claims against banks in connection with the Bernard Madoff scheme. In re Herald, Primeo, and Thema ,...

Professor Kenneth N. Klee on the Supreme Court's Holding in Clark v. Rameker

Excerpt: ARTICLE: I. The Lesson to Be Learned: Despite a long line of precedent broadly construing a debtor's exemptions, the Court will break from a textualist plain-meaning statutory construction when such a construction would undermine what the Court believes to be congressional intent in...

Both Sides Support Cert in Appeal of Order Denying Chapter 13 Plan

The Supreme Court may add another bankruptcy case to its agenda this term in a case where both the Petitioner and the Respondent support the grant of cert. No. 13-1416, Gordon v. Bank of America . The Petition can be found here and the Response in Support is here . Of course, the parties want to reverse...

Supreme Court to Decide If Bankruptcy Lawyers Can Get Fees For Pursuing Bonus Fees

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court on Oct. 2 agreed to decide whether the U.S. Bankruptcy Code gives bankruptcy courts discretion to award lawyers their fees for successfully defending applications for enhanced attorney fees ( Baker Botts, LLP, et al. v. ASARCO, LLC , No...

NCBJ 2014: Ethics and Supreme Debate

Saturday concluded NCBJ with ethics and the Supreme Court review. (There was also a program on scientific studies of mindfulness which I missed). Wait, Wait, Don’t Tell Me! An Ethics Game Show: Retired Judge James H. Haines as Peter Segal, Christine Devine (DeMaillie & Lougee), Judge Benjamin...

Supreme Court to Hear Dispute Over Fees for Defending Fee Application

The Supreme Court doesn't take many cases on bankruptcy issues. It has only ruled on attorney's fees in bankruptcy once since the Code was adopted and that ruling was on the narrow issue of whether a chapter 7 debtor's attorney could recover fees from the estate. As a result, it was big news...

Supreme Court Says Denial of Confirmation Not Automatically Appealable

In a surprisingly casual opinion, the Supreme Court, led by Chief Justice Roberts, has ruled that denial of confirmation of a chapter 13 plan does not give rise to a final order which can be appealed as a matter of right. Bullard v. Blue Hills Bank , No. 14-116 (5/4/15). The opinion can be found here...

Supreme Court Rules Debtor Entitled to Funds Remaining Upon Conversion of Chapter 13 Case

Acknowledging that the statutory language "does not say expressly" what should happen, the Supreme Court nevertheless ruled that undistributed funds held by the Chapter 13 trustee should be returned to the debtor following a conversion. The Court described its result as "the most sensible...

Wellness Case Brings Healing for Bankruptcy Court Authority

Resolving an issue left open by two prior decisions, the Supreme Court ruled that the right to entry of a final judgment by an Article III court, like the right to trial by jury, is a personal right which can be waived or consented away (subject to supervision by an Article III Court). The decision left...

U.S. Supreme Court Addresses Authority of Federal Bankruptcy Courts to Enter Final Orders and Judgments

The Wellness majority opinion is noteworthy for a number of reasons. As a practical matter, it permits this aspect of bankruptcy court practice—proceeding to final judgment in non-core matters on consent as being valid and constitutionally permissible—to continue. The world may end in...

Supreme Court Decides to Maintain the Viability of the U.S. Bankruptcy Courts, But a Key Question Remains Unresolved

by Ben Feder Four years ago, in Stern v. Marshall , the Supreme Court stunned many observers by re-visiting separation of powers issues regarding the jurisdiction of the United States bankruptcy courts that most legal scholars had viewed as long settled [ an enhanced version of this opinion is available...

Supreme Court Holds That Bankruptcy Courts Can Adjudicate Stern Claims

By Evan Zisholtz In a 6-3 ruling, the U.S. Supreme Court held that bankruptcy courts have the authority to adjudicate Stern claims so long as the litigant parties provide “knowing and voluntary consent.” This decision in Wellness International Network, et. al. v. Richard Sharif [lexis...

Baker Botts v. Asarco: The Supreme Court Shows Again That It Really Doesn’t Understand Corporate Bankruptcy Cases

by Ben Feder The Supreme Court has not handled its recent major bankruptcy decisions well. The jurisdictional confusion engendered by its 2011 decision in Stern v. Marshall was only partially clarified by this term’s opinion in Wellness International Network v. Sharif . The Court’s ruling...

Supreme Court Says Lawyers Don't Get Paid for Defending Their Fees

A Texas law firm did a great job and beat back a punitive attack on their fees. However, the Supreme Court has ruled that they may not receive compensation for defending their work. Baker Botts, LLP v. ASARCO, LLC , No. 14-103, 2015 U.S. LEXIS 3920 (6/15/15) [subscribers can access an enhanced version...