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debtors just can’t catch a break

9th cir

Donell v. Kowell, 06-55544 [July 1, 2008]

District court required investor to disgorge profits from a Ponzi scheme pursuant to requirements of the UFTA. The judgment was affirmed by court of appeals, which:

1) adopted the standard 2-step analysis for determining liability;

2) found no error in the district court’s application of the analysis;

3) determined court could require innocent investors to disgorge net profits; and

4) declined to permit good faith investors to claim offsets for expenses.

GE Capital v. Future Media, 07-55694 [July 3, 2008]

Bankruptcy court’s order denying default interest and attorney’s fees to a creditor is reversed and remanded where the appellate court found that

1) the bankruptcy court had improperly applied In re Entz-White Lumber and Supply, 850 F.2d 1338 (cir 9, 1988); and

2) the default rate is presumptively valid unless its application would violate non-bankruptcy law.

11th cir

In Re: Donovan, 07-13046 [July 2, 2008]

The circuit court lacks jurisdiction to review a bankruptcy court’s order denying an unsecured creditor’s motion to dismiss a Chapter 7 case when the bankruptcy court neither conclusively resolved the bankruptcy case as a whole nor resolved any adversary proceeding or claim.

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