In a Chapter 7 bankruptcy case, held that when the nature of a debt is such that its discharge will directly and adversely impact the finances of the debtor’s spouse or former spouse, it is nondischargeable in bankruptcy, even if it is not directly payable to the spouse. Affirmed the district court.
Held that a company that entered into an unconsummated merger agreement was not entitled to payment of a $275 million termination fee. The proposed merger had been approved by a bankruptcy court because one of the parties was in Chapter 11 bankruptcy. The Third Circuit held that the bankruptcy court did not err in narrowing the circumstances under which the termination fee would be triggered, resulting ultimately in no fee being paid.
Held that the bankruptcy court correctly disallowed a claim brought by the debtor’s former employee. A former television station employee argued that the station, whose owner was now in bankruptcy, was liable for unlawful racial discrimination. Affirming summary judgment against his claim, the Third Circuit concluded that he failed to raise a triable issue and, further, that it was too late for him to challenge the bankruptcy court’s jurisdiction to hear his discrimination claim, since he never objected to this during bankruptcy proceedings.
Held that former board members of a corporation lacked corporate authority when they filed a Chapter 11 bankruptcy petition. The board members argued that they had the proper authority to file the bankruptcy petition even though a receiver appointed by a state court already had removed them from the board of directors. Rejecting their argument, the Ninth Circuit affirmed dismissal of the bankruptcy petition.