Here’s an aggregation of some of my Twitter posts from May 16-24, 2018, with links to important cases, articles, and news briefs that restructuring professionals will find of interest. Don’t hesitate to reach out and contact me to discuss any posts. Thanks for reading!

BK RELATED CASES:

  • 9th Cir.: Tax-sale buyer & prior owner of contaminated property had a “contractual relationship” through the tax deed, so CERCLA’s 3d party defense to liability (which exempts facility owners from liability for contamination if a 3d party caused the contamination & as long as the owner did not have a contractual relationship with the third party) did not apply to a tax purchaser. California Department of Toxic Substances Control v Westside Delivery LLC
  • BAP-10: “The determination of the factors that justify separate classification of claims is a question of law reviewed de novo, but whether the requisite factors have been established is a question of fact reviewed for clear error.” In re Novinda Corp
  • CD-CA: Even if DHCS didn’t know the amt of its claim before BK filing, it could fairly contemplate the existence of its Hospital Quality Assurance quarterly fee. This is enough to satisfy the fair contemplation test, so the claim is not administrative. In re Gardens Regional Hospital and Medical Center Inc
  • D-IL: A creditor’s judgment lien attaches to a debtor’s contingent future interests in property held as tenants by the entirety, but those contingent future interests—like the tenancy interests themselves—are exempt under § 522(b)(3). Jaffe v Williams
  • BK-DE: Judge Shannon finds Till rate in Chapter 13 plan should be prime plus 2% for an auto loan, stating: “The Court is not persuaded by Ally’s arguments that a 3% adjustment is necessary due to a rapid depreciation rate of cars.” In re Burton
  • BK-ND-GA wades into the murky waters of alleged fraudulent transfers of LLC interests, examining the nature of the rights assigned, the timing of the transfer, and the value of the interests transferred. In re White
  • BK-ND-IL: Judge Thorne holds that a same-sex couple with a “Certificate of Civil Union” under IL law, but not a certificate of marriage, were the substantive equivalent of married under IL law & so were “spouses,” eligible to file a joint Ch 13 petition. In re Simmons

INTERESTING CASES FROM ILLINOIS COURTS:

  • IL AP 1: Future Chief Justice Neville of the Illinois Supreme Court presiding rules that if a general release references a specific claim, but there was a second claim known to one party and not the other, then the general release is limited to the specific claim referenced. Young v Meadows
  • IL AP 1: A $210,000 charge for one day of surgery is “not reasonable under any definition of reasonable.” Illinois Neurospine Institute PC v Maczuga
  • IL AP 1: A foreclosure buyer’s payment of condo assessments can occur after confirmation of the foreclosure sale, but should include assessments accruing the month following the foreclosure sale, not the sale’s confirmation. V And T Investment Corporation v West Columbia Place Condominium Association

LAW RELATED NEWS & ARTICLES:

LIFE AND THE WORLD GENERALLY: