BANKRUPTCY LAW CASES

• In re Johns-Manville Corp.
• Jewelcor Inc. v. Karfunkel
• Educ. Credit Mgmt. Corp.v. Mosko
• Waterson v. Hall
• Ins. Co. of PA v. HSBC Bank USA

U.S. 2nd Circuit Court of Appeals, February 15, 2008
In re Johns-Manville Corp., No. 06-2099
Order of district court affirming in part and vacating in part the determination of the bankruptcy court regarding an objector's motions for approval of certain settlement agreements and for entry of a Clarifying Order, is reversed as the bankruptcy court erred insofar as it enjoined suits that, as a matter of state law, are predicated upon an independent duty owed by objector to the appellants, that do not claim against the res of debtor's estate, and that seek damages in excess of and unrelated to debtor's insurance policy proceeds. Read more...

U.S. 3rd Circuit Court of Appeals, February 11, 2008
Jewelcor Inc. v. Karfunkel, No. 05-2244, 05-4121, 06-4003
Denial of defendants' motion to dismiss a breach-of-lease claim brought by plaintiffs on statute-of-limitations grounds, and a judgment and award of attorney's fees for plaintiffs, are reversed in part and vacated in part where the district court should have granted defendants' motion to dismiss where, since a Pennsylvania savings statute would not permit plaintiff to pursue its time-barred claim in a state court, the statute could not preserve the claim in a federal court. Read more...

U.S. 4th Circuit Court of Appeals, February 12, 2008
Educ. Credit Mgmt. Corp.v. Mosko , No. 06-2076
Bankruptcy court decision granting relief to debtors to discharge their government-backed student loan debt is reversed where the debtors have not made a good-faith effort to repay their loans. Read more...

U.S. 8th Circuit Court of Appeals, February 11, 2008
Waterson v. Hall, No. 06-4074/07-1106
Appeals from an order granting defendant's motion to stay plaintiff's medical malpractice action based on a bankruptcy discharge, as well as a clarification order, are dismissed for lack of appellate jurisdiction as neither order was a final appealable order. Read more...

New York Court of Appeals, February 12, 2008
Ins. Co. of PA v. HSBC Bank USA , No. 18
A bankruptcy court order allowing a creditor to seize a debtor's bank account is entitled to res judicata effect in a subsequent state proceeding alleging that a portion of the funds in the account were state tax proceeds that should not have been part of the bankruptcy estate. As plaintiff and its subrogor had notice of the bankruptcy action and failed to alert the court that the funds at issue were tax receipts held in trust, plaintiff cannot now challenge defendant's court-approved seizure of the funds. Read more...