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Bankruptcy

Bankruptcy proceedings and restructuring

7 articles

Federal Circuit
•4 min read
Second Circuit Court of Appeals

Second Circuit Issues Summary Order in Residential Capital LLC Case

The U.S. Court of Appeals for the Second Circuit issued a summary order on February 3, 2026, in the ongoing Residential Capital LLC bankruptcy case involving the ResCap Liquidating Trust and multiple settlement class representatives. The ruling addresses disputes stemming from the collapse of the mortgage lender that was a key player in the 2008 financial crisis.

•Second Circuit Court of Appeals issued summary order in long-running Residential Capital LLC bankruptcy case
•Case involves ResCap Liquidating Trust and multiple settlement class representatives seeking remedies
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Federal Circuit
•4 min read
Fifth Circuit Court of Appeals

5th Circuit Affirms $300K Judgment in Business Partnership Fraud Case

The Fifth Circuit Court of Appeals affirmed a nearly $300,000 non-dischargeable judgment against Michele DiBassie in a bankruptcy fraud case brought by her former business partner Christopher Reeves. The court rejected DiBassie's arguments challenging Reeves' standing and contract interpretation.

•Fifth Circuit affirmed $299,980.98 non-dischargeable judgment against Michele DiBassie in bankruptcy fraud case
•Court rejected DiBassie's challenges to Christopher Reeves' standing to bring embezzlement claims
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Federal Circuit
•4 min read
Third Circuit Court of Appeals

Third Circuit Affirms State Farm Win in $5.29M Bankruptcy Estate Case

The U.S. Court of Appeals for the Third Circuit affirmed summary judgment for State Farm Mutual Automobile Insurance Company in a lawsuit brought by a bankruptcy trustee. The case stemmed from a 2015 car accident involving an excluded driver that resulted in a $5.29 million judgment.

•Third Circuit affirmed summary judgment for State Farm in bankruptcy estate insurance dispute
•Case involved $5.29 million judgment from 2015 accident caused by excluded driver Kevin Parkhurst
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Federal Circuit
•4 min read
Ninth Circuit Court of Appeals

9th Circuit Reverses Nevada Court in Hotel Finance Dispute

The Ninth Circuit Court of Appeals reversed a Nevada district court's summary judgment ruling in a complex financing dispute between lenders over a failed Reno hotel renovation project. The appeals court found errors in the lower court's interpretation of title insurance proceeds distribution and damages award.

•Ninth Circuit reversed Nevada district court's summary judgment ruling favoring senior lender Hall CA-NV over title insurance proceeds
•Appeals court found errors in contract interpretation regarding parties' intent in commercial financing agreement
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Federal Circuit
•4 min read
Fifth Circuit Court of Appeals

5th Circuit Affirms $4M Fraud Judgment Against Texas Oil Executive

The Fifth Circuit Court of Appeals affirmed a $4 million fraud judgment against Juan Fernando Pastrana, who defrauded investors in a Texas oil recycling facility scheme. The appeals court upheld both the bankruptcy court's damages award and the district court's affirmance in the multi-million dollar case.

•Fifth Circuit affirmed $4 million fraud judgment against Juan Fernando Pastrana
•Case involved fraudulent oil recycling facility scheme in Harris County, Texas
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Federal Circuit
•4 min read
Fifth Circuit Court of Appeals

Fifth Circuit Hears Appeal in New Orleans Archdiocese Bankruptcy Case

The U.S. Court of Appeals for the Fifth Circuit is hearing an appeal from Richard C. Trahant challenging decisions in the Roman Catholic Church of the Archdiocese of New Orleans bankruptcy case. The appeal involves disputes over confidential information regarding sexual abuse allegations and represents a significant development in one of the most closely watched Catholic Church bankruptcy proceedings.

•Richard C. Trahant filed an appeal with the Fifth Circuit challenging decisions in the New Orleans Archdiocese bankruptcy case
•The dispute involves confidential information about sexual abuse allegations that Trahant obtained while representing alleged victims
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State Court
•4 min read
Washington Supreme Court

Washington Supreme Court Reverses on Civil Rule 60(b)(11) Relief Standards

The Washington Supreme Court reversed a Court of Appeals decision and granted extraordinary relief under Civil Rule 60(b)(11) in *Luv v. West Coast Servicing, Inc.*, ruling that a series of legal mistakes and trial court errors justified relief from judgment. The en banc decision, filed October 9, 2025, clarifies when parties can seek relief from final judgments under the state's civil rules.

•Washington Supreme Court reversed Court of Appeals decision denying CR 60(b)(11) relief
•Trial court's erroneous application of law, combined with other legal mistakes, justified extraordinary relief from judgment
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