High Court clarifies 'excusable neglect.' (bankruptcy law)
Article Abstract:
The US Supreme Court in Pioneer Investment Services v. Brunswick Associates the failure of a creditor to file a timely proof of claim was a case of 'excusable neglect' under Federal Rule of Bankruptcy Procedure 9006(b)(1). The court found that the parties acted in good faith and that the late claim did not prejudice the debtor or the efficient processing of the bankruptcy claim. The late filing was found to be excusable because the bar date was not prominently placed and explained on the notice of the first creditors' meeting. The court felt that this notice was not customary and ambiguous.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1993
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Why 2d Circuit upset Manville accord
Article Abstract:
The 2d Circuit has overturned a settlement of a class action which restructured the Manville Personal Injury Trust. The case was In re Joint Eastern and Southern District Asbestos Litigation. The circuit court analyzed whether the trial court approval had constituted a proper exercise of their bankruptcy jurisdiction and decided there was a violation of Bankruptcy Code Section 1127(b), which forbids changing a substantially finished Chapter 11 plan. The trial court also relied on diversity jurisdiction and the federal class action rule in deciding the case.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1993
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Comment about this article or add new information about this topic:
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