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Case Analysis: In Easley v. Collection Serv. of Nev., 910 F.3d 1286 (9th Cir. 2018), the United States Court of Appeals for the Ninth Circuit (the “Ninth Circuit”) expanded the holding in In re Schwartz-Tallard, 803 F. 3d 1095 (9th Cir. 2015)

June 24, 2019 Dear constituency list members of the Insolvency Law Committee, the following is a case update. Summary In Easley v. Collection Serv. of Nev., 910 F.3d 1286 (9th Cir. 2018), the United States Court of Appeals for the Ninth Circuit (the “Ninth Circuit”) expanded the holding in In re Schwartz-Tallard, 803 F. 3d 1095 (9th Cir. 2015) (en banc), to mean that debtors are entitled to recover appellate attorneys’ fees when successfully challenging an initial award of fees and costs awarded to them under section 362(k) for a willful violation of the automatic stay, not only when defending such award. To read the full published decision, click here. Facts Appellants, chapter 13 debtors (“Debtors”), scheduled a hospital as a general unsecured creditor in the amount of $3,535, but the debt had previously been assigned to appellee Collection Service of Nevada (“Appellee”). Unaware of the bankruptcy, Appellee pursued collection...

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Case Analysis: Brace v. Speier (In re Brace), No. 17-60032 (9th Cir. Nov. 8, 2018), Insolvency Law e-Bulletin, Insol. L. Comm., Bus. L. Sec., Cal. Law. Ass’n (Mar. 18, 2019)

March 18, 2019 Dear constituency list members of the Insolvency Law Committee, the following is a recent case update. SUMMARY On January 16, 2019, the California Supreme Court granted the request of the U.S. Court of Appeals for the Ninth Circuit to decide questions of California law relevant to the Ninth Circuit’s determination of Brace v. Speier (In re Brace), No. 17-60032 (9th Cir.). The question presented by the Ninth Circuit is whether the “form of title” presumption in California Evidence Code section 662 overcomes the presumption in California Family Code section 760 that all property acquired by a married person during marriage is community property. To read the Ninth Circuit’s Order Certifying Question to the Supreme Court of California, click here. BACKGROUND Clifford and Ahn Brace were married in 1972. In the late 1970s, they purchased a home in Redlands. At some point they also purchased a rental property...

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Case Analysis: Klein v. ODS Technologies, LP (In re J & J Chemical, Inc.), Adv. No. 18-08029-JDP (Bankr. D. Idaho Jan. 11, 2019), Insolvency Law e-Bulletin, Insol. L. Comm., Bus. L. Sec., Cal. Law. Ass’n (Mar. 15, 2019)

March 15, 2019 Dear constituency list members of the Insolvency Law Committee, the following is a case update analyzing a recent case of interest: SUMMARY In Klein v. ODS Technologies, LP (In re J & J Chemical, Inc.), Adv. No. 18-08029-JDP (Bankr. D. Idaho Jan. 11, 2019), a U.S. Bankruptcy Court for the District of Idaho (the “Court”) held that the court in which a bankruptcy case is pending is a proper venue for a fraudulent transfer action brought under sections 544(b) or 548 of the Bankruptcy Code, regardless of the amount at issue or the residence of the defendant. The Court also held that even if 28 U.S.C. § 1409(b) applies to such an action, the court is a proper venue if the value of the property to be recovered is at least $1,300, and the higher $12,850 threshold for actions against a non-insider to recover “a debt” does not apply....

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Case Analysis: Hsu v. MTC Financial, Inc. (In re Hsu), 692 Fed.Appx. 888 (9th Cir. June 30, 2017), Insolvency e-Bulletin, Insol. L. Comm., Bus. L. Sec., Cal State Bar (November 30, 2017)

ILC-EBulletin:  Ninth Circuit rules that a CM/ECF outage did not excuse appellant’s failure to file a timely appeal or motion for reconsideration Dear constituency list members of the Insolvency Law Committee, the following is a case update analyzing a recent case of interest: SUMMARY Each year, December 1 is the date on which new and amended federal rules and forms become effective.  Sometimes, this requires local bankruptcy courts to take automated systems offline.  That is again the case this year.  In the Central District of California, CM/ECF, PACER and certain other automated systems will not be available from 1:00 p.m. on Thursday, November 30, 2017, until 8:30 a.m. on Friday, December 1, 2017. The scheduled outage calls to mind the cautionary tale of Hsu v. MTC Financial, Inc. (In re Hsu), 692 Fed.Appx. 888 (9th Cir. June 30, 2017).  In that case, the Ninth Circuit ruled that a scheduled CM/ECF outage...

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Case Analysis: JPMCC 2007-C1 Grasslawn Lodging, LLC v. Transwest Resort Props., Inc. (In re Transwest Resort Props., Inc.), 881 F.3d 724 (9th Cir. 2018), Insolvency e-Bulletin, Insol. L. Comm., Bus. L. Sec., Cal State Bar (May 15, 2018)

Dear constituency list members of the Insolvency Law Committee, the following is a case update analyzing a recent case of interest:   SUMMARY   In JPMCC 2007-C1 Grasslawn Lodging, LLC v. Transwest Resort Props., Inc. (In re Transwest Resort Props., Inc.), 881 F.3d 724 (9th Cir. 2018), the U.S. Court of Appeals for the Ninth Circuit held that an election under section 1111(b)(2) of the Bankruptcy Code does not require that a chapter 11 plan contain full due-on-sale protections, and that section 1129(a)(10) of the Bankruptcy Code applies on a “per plan” (not a “per debtor”) basis.  To read the full published decision, click here:  http://cdn.ca9.uscourts.gov/datastore/opinions/2018/01/25/16-16221.pdf.   FACTS   In 2010, a group of five entities (collectively the “Debtors”) filed for chapter 11.  The Debtors consisted of one parent company, two “Mezzanine Debtors” that were owned by the parent company, and two “Operating Debtors” that were each owned by one...

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