By Donald L. Swanson In 2022, the U.S. Supreme Court issues its unanimous Siegel v. Fitzgerald opinion. The question in that opinion is: whether fee increases for bankruptcy cases, that exempt cases filed in Alabama and North Carolina, are permissible under the U.S. Constitution clause requiring “uniform Laws on the subject of Bankruptcies”; and if not,... Continue Reading →
2023 Bankruptcy Shocker: Third Circuit Lauding Disparate Results For Similarly Situated Claimants
Disparate styles (photo by Marilyn Swanson) By Donald L. Swanson Here’s my biggest bankruptcy shocker from 2023: the Third Circuit’s rationale for dismissing Johnson & Johnson’s bankruptcy. I’ll try to explain. Appalled I’m still appalled by the lack of concern, from the Third Circuit Court of Appeals in its dismissal opinion, over these disparities it describes... Continue Reading →
Bankruptcy Is A Valuable And Desirable Venue for Resolving Mass Tort Cases (Truck v Kaiser)
A valuable and desirable place (photo by Marilyn Swanson) By: Donald L Swanson “Bankruptcy provides a valuable and desirable venue for the resolution of [mass tort] disputes” by: “ensuring equitable recovery for all tort claimants”; and “preventing many of the inefficiencies that otherwise result from races to the courthouse.” This quotation is from the Amicus Brief... Continue Reading →
The Handshake: A Negotiating Tool? (A Study)
A handshake? (Photo by Marilyn Swanson) By Donald L. Swanson The handshake, as a social ritual, has been around for a very long time. In days of olde, the handshake probably served a dual role: as a sign of peaceful greeting; and as a way to assure that the other person isn’t holding a dagger or... Continue Reading →
Mandating Mediation–How It’s Done: (i) Local Rule Examples, and (ii) A Separate Order Guideline
A coffee orchard: here's how it's done By: Donald L. Swanson There are many reasons to mandate mediation in certain circumstances. One is to improve the quality of justice. Another is to manage an expanding docket and burgeoning caseload. A third is to create a mediation culture where none currently exists. There are two ways to... Continue Reading →
Diminishing The U.S. Constitution’s Bankruptcy Power: Congress, Courts & U.S. Trustee
Diminishing effectiveness? (photo by Marilyn Swanson) By: Donald L Swanson The history of bankruptcy in these United States teaches this: bankruptcy laws can provide an efficient and effective solution for a great variety of financial problems. But bankruptcy laws, in these United States, face significant problems, and their effectiveness is being diminished. First Problem Bankruptcy has... Continue Reading →
Rejecting An “Oh, No!” Ruling On Subchapter V Eligibility (In re Zhang)
"Oh, no!" (Photo by Marilyn Swanson) By: Donald L Swanson Every now and then, a bankruptcy ruling elicits an “Oh, no!” response from just about everyone. And then, subsequent case law starts rejecting and/or chipping-away at that “On, no!” ruling. We have such an “Oh, no!” situation going on right now on a Subchapter V debt-limit... Continue Reading →
Narrow and Limited Effect of U.S. Supreme Court’s Stern v. Marshall Opinion (In re Richards)
By Donald L. Swanson I'm reading a U.S. circuit court's recent bankruptcy opinion that cites Stern v. Marshall, 564 U.S. 462 (2011). I'm startled by that and blurt out (to myself), "Who cites Stern anymore?!" and "Is Stern still a thing?!" and "I thought Stern has been narrowed to nearly nothing?!" And then I see... Continue Reading →
California Omits Insider Preferences From Its UVTA But Includes Them In Its ABC Statute . . . What’s With That?!!
California dreamin’ (photo by Marilyn Swanson) By: Donald L Swanson The following combination of facts seems odd . . . and confusing. The Uniform Voidable Transactions Act ("UVTA") authorizes (in Sec. 5(b)) unsecured creditors to avoid insider preferences, with a one-year reach back, when the insider "had reasonable cause to believe that the debtor was insolvent"... Continue Reading →
Involuntary Bankruptcy Is Dead—RIP (In re TV Azteca)
RIP (Photo by Marilyn Swanson) By: Donald L Swanson What creditor would ever want to be an involuntary bankruptcy petitioner under these statements of facts and law: Facts: “Here, there is no dispute that the holders of the Notes are owed the entire principal amount plus unpaid interest. . . . But, there is a dispute... Continue Reading →