Fourth Circuit Strikes Plan’s Non-Consensual Third-Party Release
The Fourth Circuit Court of Appeals, in National Heritage Foundation v. Highbourne Foundation, 2014 U.S. App. LEXIS 12144 (4th Cir. June 27, 2014), recently held a Chapter 11 plan’s non-consensual, third party release of non-debtors invalid...
Michigan Court of Appeals Refuses to Enforce Photocopied Promissory Note
In an unpublished opinion, the Michigan Court of Appeals in Shaya v. Karam, et. al, Case No. 308905, refused to allow plaintiffs to enforce a promissory note because plaintiffs possessed only a photocopy of the note. Plaintiffs had taken their...
Supreme Court Rules Bankruptcy Courts Can Adjudicate Stern Claims Subject To District Court Review
In Exec. Benefits Ins. Agency v. Arkison, Chapter 7 Tr. of Estate of Bellingham Ins. Agency, Inc., 573 U.S. ___, (2014), the United States Supreme Court held that claims designated for final adjudication in the bankruptcy court as a statutory...
Michigan Court of Appeals Overrides Express Contract Language by Creating "Gap Filler"
The Michigan Court of Appeals recently held that courts may create a "gap filler" that reaches a result contrary to a contract's terms. In Martlew v. City of Benton Harbor, et al. (Case No. 311897, May 1, 2014), the plaintiff entered into a contract...
Sixth Circuit Holds Bankruptcy Court Has Constitutional Authority to Enter Final Judgment in Non-Discharge Action
In Hart v. Southern Heritage Bank, Case No. 13-6188 (April 28, 2014), the United States Court of Appeals for the Sixth Circuit held that a Bankruptcy Court for the Eastern District of Tennessee had constitutional authority to enter a final monetary...
Sixth Circuit Holds Individual Chapter 11 Debtors Remain Subject to the Absolute Priority Rule
In a direct appeal from the bankruptcy court, the Sixth Circuit reversed the bankruptcy court’s confirmation of an individual’s chapter 11 plan of reorganization and held that the plan must satisfy the absolute priority rule. Ice House Am. v....
Sixth Circuit Holds Bank’s Loss Payee Coverage Derivative
The United States Court of Appeals for the Sixth Circuit in Westfield Ins. Co. v. Talmer Bancorp, 545 Fed. Appx. 402 (6th Cir. Oct. 30, 2013) held that a secured party’s insurance coverage rights under a loss payee provision are derivative of its...
Amendments to Michigan Court Rules Regarding Receivership to Take Effect May 1, 2014
On March 26, 2014, the Michigan Supreme Court approved amendments to MCR 2.621 and MCR 2.622 regarding receiverships in Michigan. Court Rule 2.622 was amended to specifically set forth the process for the appointment of a receiver, selection of a...
Michigan Court of Appeals Holds “Outbidding and Outmaneuvering” Does Not Constitute Tortious Interference
The Michigan Court of Appeals reversed a circuit court judgment on tortious interference and remanded for entry of a judgment of no cause of action. In Datam Manufacturing v Magna Powertrain USA(Case No. 306202, February 13, 2014), Magna competed...
