Type: Amicus
Date: October 11, 2019
Description: Whether denial of a motion for relief from stay is immediately appealable.
Result: Affirmed. January 14, 2020
Bankruptcy Court May Not Enforce Discharge Order from Other District
On direct interlocutory appeal, the Fifth Circuit found that courts may not use their contempt powers to enforce discharge orders issued by other courts outside their judicial districts. The court also held that the private student loans at issue were not subject to section 523(a)(8)(A)(ii)’s nondischargeability provision because that provision applies only to educational benefits where, as in the case of grants or scholarships, the obligation to repay is conditional. Crocker v. Navient Solutions LLC, No. 18-20254 (5th Cir. Oct. 22, 2019). [Read more…] about Bankruptcy Court May Not Enforce Discharge Order from Other District
Bankruptcy Court Clarifies Authentication Standard in Motions for Summary Judgment
The Bankruptcy Court for the District of Delaware recently clarified the authentication standard for an exhibit attached to a motion for summary judgment. The court examined the change in Fed.R.Civ.P. 56(c)(4) in 2010 (made applicable to bankruptcy proceedings in Fed.R.Bankr.P. 7056 and applicable to all contested matters in Fed.R.Bankr.P. 9014(c)).
This case involves a corporate Chapter 7 bankruptcy. The Trustee is holding a large tax refund of approximately $5.5 million and two creditors claimed priority in disbursement. In support of its summary judgment motion creditor 1 relied upon a declaration with 29 exhibits and sub-exhibits signed by an employee from creditor 1’s parent company. Creditor 2 moved to strike the employee’s declaration and its exhibits for failing to meet the requirements in Fed.R.Civ.P. 56(c).
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United States v. West, No. 18-2116 (W.D. Tenn.)
Type: Amicus
Date: July 16, 2018
Description: Whether the district court has jurisdiction over an appeal of denial of student loan lender’s motion for summary judgment.
Result: Pending
Rooker-Feldman No Bar to Exercise of Trustee’s Strong-Arm Power
The Sixth Circuit agreed with the position advanced in NACBA / NCBRC’s amicus brief that the Rooker-Feldman doctrine does not preclude application of the trustee’s strong-arm power to avoid a lien notwithstanding a state court judgment of foreclosure. Isaacs v. DBI-ASG Coinvestor Fund III, LLC (In re Isaacs), No. 17-5815 (6th Cir. July 18, 2018).
Linda Isaacs and her husband entered into a mortgage agreement with GMAC Mortgage Corporation. The contract provided in the “description of security” that “By signing this Mortgage, we hereby mortgage, grant and convey [the collateral],” and, in the “priority of advances” section, that “The lien of this Mortgage will attach on the date this mortgage is recorded.” Shortly after signing the agreement, Ms. Isaacs filed for Chapter 7 bankruptcy. She scheduled GMAC as a secured creditor, not realizing that it had not yet recorded the mortgage. GMAC recorded the mortgage while the automatic stay was in effect. Ten years after Ms. Isaacs obtained her Chapter 7 discharge, the successor to GMAC sought an order of foreclosure against the Isaacs. The state court issued a default order of foreclosure, and one day before the scheduled sale, Ms. Isaacs filed for Chapter 13 bankruptcy. [Read more…] about Rooker-Feldman No Bar to Exercise of Trustee’s Strong-Arm Power
Court Properly Declined to Compel Arbitration of Educational Loan Issue
Potential discharge of an educational loan is a core bankruptcy proceeding over which the bankruptcy court may exercise jurisdiction despite an arbitration clause in the lending agreement. Navient Solutions v. Farmer, No. 17-764 (W.D. Wash. Oct. 16, 2017).
In her Chapter 7 bankruptcy, Janay Farmer sought to discharge a loan she had taken out to finance her post-graduation bar examination. The lender, Navient, moved to compel arbitration by the terms of the lending agreement. Reasoning that the issue of treatment of the loan was a core bankruptcy matter, the bankruptcy court found that it had discretion to exercise jurisdiction over the case. In re Farmer, 567 B.R. 895 (Bankr. W.D. Wash. 2017). [Read more…] about Court Properly Declined to Compel Arbitration of Educational Loan Issue
Reminder: Timely Notice of Appeal Is Jurisdictional
Timely filing of a notice of appeal is a jurisdictional prerequisite and an appellant must at least conform his filing to general adherence to the requirements outlined in Rule 8003(3). In re Dorsey, 2017 U.S. App. LEXIS 16905, No. 16-31085 (5th Cir. Sept. 1, 2017). [Read more…] about Reminder: Timely Notice of Appeal Is Jurisdictional
Isaacs v. DBI-ASG Coinvestor Fund, No. 17-5815 (6th Cir.)
Type: Amicus
Date: September 28, 2017
Description: Whether the Rooker-Feldman doctrine can divest a bankruptcy court of subject matter jurisdiction over causes of action that arise only under the Bankruptcy Code.
Result: Pending
No Jurisdiction over Appeal of District Court Vacation of Confirmation Order
“When a district court vacates a bankruptcy court order confirming a bankruptcy plan and remands for further proceedings, there is no final order sufficient to confer jurisdiction under 28 U.S.C. § 158(d).” Bank of New York Mellon v. Watt, No. 15-35484 (9th Cir. Aug. 16, 2017).
In their bankruptcy plan, Nicholas and Patricia Watt included a provision vesting title to their residence in the mortgagee, Bank of NY, and specifying that “vesting shall not merge or otherwise affect the extent, validity, or priority of any liens on the property.” Bank of NY opposed the mandatory vesting provision and objected to confirmation of the plan. The bankruptcy court confirmed the plan. [Read more…] about No Jurisdiction over Appeal of District Court Vacation of Confirmation Order
Deadline for Revocation of Discharge Not Jurisdictional
The one-year deadline for seeking revocation of a discharge order is not jurisdictional and may therefore be waived. Weil v. Elliott (In re Elliott), No. 16-55359 (9th Cir. June 14, 2017).
When Edward Elliott filed his Chapter 7 bankruptcy petition he failed to mention one important asset: his home. He received a discharge under section 727(a). Fifteen months later, when the trustee discovered the fraudulent nondisclosure, she filed an adversary complaint seeking an order vacating the discharge under section 727(d)(1). Section 727(e)(1) permits a trustee to seek revocation of discharge within one year of the discharge order. Mr. Elliott did not raise the issue of untimeliness in his response to the adversary complaint. The bankruptcy court revoked his discharge. The Bankruptcy Appellate Panel, however, found the one-year filing deadline to be jurisdictional and reversed. Elliott v. Weil (In re Elliott), 529 B.R. 747, 755 (B.A.P. 9th Cir. 2015). On remand, the bankruptcy court dismissed the adversary complaint for lack of jurisdiction. The trustee was permitted direct appeal to the Ninth Circuit. [Read more…] about Deadline for Revocation of Discharge Not Jurisdictional