A third-party injunction in a chapter 11 bankruptcy is generally used to protect a non-bankrupt entity from liability that is shared with, or derivative of, a bankrupt entity. Third-party injunctions are difficult to obtain in any bankruptcy setting, because bankruptcy laws are generally intended to protect debtors in bankruptcy, not non-debtor affiliates. Increasingly, however, third-party […]
Read MoreCreditor denied derivative standing in chapter 7 case.
Read MoreIntroduction Bankruptcy courts are often asked to determine the state law rights of debtors and claimants alike. However, the Supreme Court in 2011 held that the non-Article III courts (i.e., bankruptcy courts) generally do not hold constitutional authority to enter final judgments on state common law claims, despite being conferred with statutory authority under 11 […]
Read MoreIn Lone Star State Bank of West Texas v. Waggoner, et al. (In re Waggoner Cattle, LLC), Adv. P. No. 18-02003 (RLJ) (Bankr. N.D. Tex. Nov. 19, 2018), the United States Bankruptcy Court for the Northern District of Texas reminded us that creditor’s claims against third parties can confer jurisdiction on a bankruptcy court when […]
Read MoreFederal bankruptcy judges, who are not appointed under Article III of the Constitution, do not have the power to enter a final judgment in all matters that come before them. Pursuant to 28 U.S.C. § 157(b)(2), they generally may enter a judgment in all cases under the Bankruptcy Code or in certain proceedings defined as […]
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