Chapter 13 Debtor Has Continuing Duty To Disclose Post-Petition Causes of Action
Oct. 18 –A bankruptcy court did not abuse its discretion by finding a debtor estopped because there is a continuing duty to disclose post-petition causes of action in a Chapter 13 proceeding, the U.S. Court of Appeals for the Fifth Circuit held Oct. 4 ( Flugence v. Axis Surplus Ins. Co. (In re Flugence), 2013 BL 275313 5th Cir., No. 13-30073, 10/4/13).
Obama Signs Bill for DOT to Use Rulemaking Process to Require Driver Sleep Apnea Tests
Oct. 18 — President Barack Obama has signed into law a bill requiring the Transportation Department’s Federal Motor Carrier Safety Administration to use a formal rulemaking process if it wishes to require sleep apnea testing for commercial truck drivers.
Obama signed the measure (H.R. 3095) Oct. 15. It was passed by the House under suspension of the rules Sept. 26 by a vote of 405-0, and the Senate passed the measure on a unanimous consent request Oct. 4. The bill was supported by the American Trucking Associations and other industry groups, as well as the International Brotherhood of Teamsters.
Life Sciences Startups Need A Patent, Licensing Plan Early On
Oct. 16 –Life science startups need to plan and prepare their arguments about why their work deserves intellectual property protections amid greater uncertainty in litigation over beliefs rather than business reasons, the Wisconsin Alumni Research Foundation general counsel advised at an Oct. 10 life sciences conference in San Francisco.
Expungement Granted in High Percentage Of Broker-Dealer Arbitration Settlements
Oct. 16 –Expungement relief was granted in a very high percentage of arbitration cases filed by investors against broker-dealers, particularly those that were resolved by settlement or stipulated awards, a new study by the Public Investors Arbitration Bar Association found.
Employee Morale, Productivity Are Casualties Of Federal Shutdown, APMA Director Says
Oct. 15 –The worst impact of the federal government’s shutdown will be the bite it takes out of employee morale once the standoff ends, the director of the Advance Pricing and Mutual Agreement Program told Bloomberg BNA Oct. 15.
“It is going to take a while to get people up and running again,” Richard McAlonan said. “It’s just human nature.”
Dispute Over ‘Rebels Honky Tonk’ Lives Because of Pending Equitable Defenses
Oct. 15 –A dispute between two bar owners using the name “Rebels Honky Tonk” and an associated logo could not be resolved at the summary judgment stage, given pending equitable defenses asserted by the defendant, the U.S. District Court for the Southern District of Texas ruled Oct. 9 ( Reservoir, Inc. v. Truesdell, S.D. Tex., No. 4:12-cv-02756, 10/9/13).
‘End the Shutdown,’ AFL-CIO, U.S. Chamber Urge in Rare Joint Letter to Obama, Congress
Oct. 15 –Making an exception in a long history of disagreements, the AFL-CIO and the U.S. Chamber of Commerce partnered in an Oct. 11 letter to ask President Barack Obama and members of Congress to reach a resolution to reopen the government and avoid a default.
Debtor Files Chapter 11 to Avoid Posting Bond; Dismissal of Case Affirmed
Oct. 9 –An individual Chapter 11 debtor’s case was properly dismissed when a bankruptcy court found the debtor had filed for bankruptcy in order to pursue a state court appeal without having to post a supersedeas bond, the U.S. District Court for the Eastern District of Texas held Sept. 23 (BOT Real Estate LLC v. Anderton (In re Anderton), 2013 BL 254750, E.D. Tex., No. 6:12-cv-00332-MHS, 9/23/13).
Wisconsin Governor Calls for Special Session to Address Tax Relief Legislation
Oct. 10 –Wisconsin Gov. Scott Walker (R) has called for a special legislative session to address three tax bills aimed at providing relief to property owners and stimulating business development.
Walker said Oct. 10 he would call on the Wisconsin Assembly to support a property tax bill (number not available) that would provide property owners with $100 million in relief over four years. Walker also called for passage of a bill (S.B. 132) boosting Wisconsin’s Historic Preservation Tax Credit program and a bill amending tax increment financing rules for municipalities (number not available). The three objectives for the special legislative session were described in Executive Order 117.
Ex-Commissioner Calls on SEC to Focus Enforcement Attention on Culpability, Harm
Oct. 10 –Former Securities and Exchange Commissioner Troy Paredes Oct. 9 urged the agency to focus its enforcement attention on activities involving the most culpable individuals and firms, and the most harm to investors.
“In my view, it is particularly important that” the SEC base its enforcement decisions on the facts, the law and due process considerations, rather than whether there is public outcry over the incident, said the former commissioner.
Canadian Court Finds Novartis Osteoporosis Drug Not Patentable
Oct. 9 –The Federal Court of Canada has rejected Novartis Pharmaceuticals Canada Inc.’s bid to block a generic version of the osteoporosis drug Aclasta, finding that the drug is a form of treatment that is not patentable in Canada (Novartis Pharmaceuticals Canada, Inc. v. Cobalt Pharmaceuticals Co., Fed. Ct., No. T-724-12, 9/25/13).
Capital One Financial Corp. Directors Again See Dismissal of Del. Derivative Suit
The U.S. District Court for the Eastern District of Virginia Oct. 8 dismissed for a second time a double derivative action against Capital One Financial Corp.(COF) directors relating to “add-on” products such as payment protection insurance and credit monitoring that regulators determined were sold using deceptive practices (In re Capital One Derivative S’holder Litig. , 2013 BL 278168, E.D. Va., Lead Case No. 1:12cv1100, 10/8/13).
Poll Shows Greater Awareness Of Sales Tax Requirement on Web Sales
Oct. 8 –A poll commissioned by shopping center owners shows that consumers are much more aware than a year ago that they must pay sales taxes on goods they buy through the Internet.
The poll, organized by the International Council of Shopping Centers, showed that 64 percent of consumers are aware they owe sales tax on goods they buy online, an increase of 23 percentage points since October 2012.
Copyright Register Must Be Consulted Prior To Registration’s Invalidation for Inaccuracies
Oct. 8 — A federal court is statutorily required to consult the Copyright Register prior to invalidating a registration based on intentional misstatements that are made in an application, the U.S. Court of Appeals for the Seventh Circuit held Oct. 7 ( DeliverMed Holdings, LLC v. Schaltenbrand, 7th Cir., No. 12-3773, 10/7/13).
Staffing Firms Added Nearly 1 Million Jobs Over Four Years Since Recession, ASA Says
Oct. 8 –Staffing agency employment rose by nearly 1 million jobs in the four years since the recession ended in June 2009, leading temporary and contract jobs to their highest share of overall nonfarm employment since 2000, according to the American Staffing Association’s 2013 annual economic analysis released Oct. 8.
Ohio Cannot Discipline D.C. Lawyer Who Has Bankruptcy Practice in Ohio
Oct. 7 –The Ohio Supreme Court Sept. 26 held that its disciplinary authority does not extend to a lawyer who is licensed in another jurisdiction but practices in federal bankruptcy courts in Ohio and has represented Ohio residents in other matters ( Disciplinary Counsel v. Harris, Ohio, No. 2012-1698, 9/26/13).
Insurers Push for Delay in Effective Dates For Tax Treatment of Mixed Straddles
Oct. 4 –Insurers asked the Internal Revenue Service to delay the effective dates for temporary rules on the tax treatment of identified mixed straddle (IMS) transactions.
The industry needs more time to implement plans for recognizing capital gains before the significant capital losses they incurred in the 2008 and 2009 financial crisis expire, PricewaterhouseCoopers LLP and the American Council of Life Insurers said.
Securities Markets Make Contingency Plans in Case of U.S. Default on Debt
Financial markets are preparing for the worst as Capitol Hill remains unable and unwilling to forge a debt limit deal, threatening a first-ever U.S. default.
The Securities Industry and Financial Markets Association (SIFMA) said Oct. 4 that their members have planned, in the case the debt limit is breached, a series of conference calls for the day before a scheduled Treasury security reaches maturity, which could go unpaid.
Bankruptcy Court Must Determine Whether Creditor Acted in Bad Faith for Sanctions
Oct. 4 –The U.S. District Court for the Eastern District of New York Sept. 17 declined to enter a sanctions award against a creditor because the bankruptcy court needs to determine whether the creditor acted in bad faith in violating an order the debtor and creditor entered into regarding the demolition of the debtor’s building or erection of a fence surrounding the debtor’s building (MA Salazar, Inc. v. Inc. Vill. of Atlantic Beach, E.D.N.Y., No. 2:12-cv-03458-ADS, 9/17/13).
Shoe Salesman May Advance ADEA Claims, Court Rules, Citing Pretext and Agency Issues
Oct. 4 –A Connecticut shoe salesman fired in his 60s who was told management wanted a younger sales force and was replaced by a 29-year-old woman can proceed to trial with ADEA and state law age and sex discrimination claims, the U.S. District Court for the District of Connecticut ruled Sept. 30 (Tremalio v. Demand Shoes, LLC, D. Conn., No. 3:12-CV-00357, 9/30/13).