Purdue Pharma L.P. – The Amicus Curiae Briefs
By Uzzi O. Raanan On August 10, 2023, the United States Supreme Court granted a writ of certiorari in William K. Harrington, United States Trustee, Region 2 v. Purdue Pharma L.P., et al. Oral arguments were held on December 4, 2023. For the oral argument audio: Click Here On June 27, 2024, the Court issued its 5-4 majority opinion drafted by Justice Gorsuch, reversing the prior ruling by the Second District Court of Appeals. Justice...
USING OUT OF STATE CHOICE OF LAW TO AVOID CALIFORNIA USURY RULES? THINK AGAIN!
By: Eric P. Israel A recent case of interest held that California usury law “is [a] fundamental public policy of the state,” which can overcome the choice of law provisions in loan documents. G Companies Management, LLC v. LREP Arizona LLC, 88 Cal. App. 5th 342, 304 Cal. Rptr. 3d 651 (2023). In G Companies, the California Court of Appeal held that anti-usury laws represent a strong public policy of the State, and hence that...
In re Matter of GFS Industries, LLC
By: Uzzi O. Raanan Fifth Circuit Court of Appeals disagrees with the Ninth Circuit BAP as to whether corporate debtors can be sued for nondischargeability under 11 U.S.C. section 1192(2) in subchapter V cases, setting up a future challenge in the Ninth Circuit Court of Appeals The Fifth Circuit Court of Appeals has held that nondischargeability provisions of the kind specified in 11 U.S.C. section 523(a) apply to individual and corporate debtors who confirm nonconsensual...
In re Licup (Nondischargeability Under Section 523(a)(3)(A))
By: Uzzi O. Raanan In a published decision purporting to answer a question previously unresolved in this circuit, the Ninth Circuit Court of Appeals ruled that a debtor’s failure in an asset chapter 7 case to list or schedule a debt, as required by 11 U.S.C. section 521(a)(1), in time for the creditor to timely file a proof of claim, renders the debt nondischargeable in its entirety, unless the creditor had actual knowledge of the...
What is a “bona fide dispute”?
Two provisions of the Bankruptcy Code turn on the existence of a “bona fide dispute.” An involuntary petition may not be filed by an alleged creditor against the alleged debtor if the creditor’s claim is “the subject of a bona fide dispute as to liability or amount.” 11 U.S.C. § 303(b)(1). A trustee may sell property free and clear of an interest that is “in bona fide dispute.” 11 U.S.C. § 363(f)(4). These disparate statutory...