May 6, 2020Share
Supreme Court Delays Decision to Next Year on Whether Automatic Stay Requires a Creditor to Turn Over Repossessed Property Without a Turnover Action
By: Dennis LeVine
The refrain from sports fans in most cities is “wait ‘til next year.” Bankruptcy lawyers and lenders now will have to wait to find out what the Supreme Court will rule on whether a repossessed vehicle must be returned to the debtor after a bankruptcy filing.
The Supreme Court postponed oral argument in City of Chicago v. Fulton (set for April 20, 2020) until the new term to begin in October 2020. The Supreme Court ceased holding oral arguments in March in the wake of the coronavirus. Several significant cases were reset for oral arguments by video hookup, but not Fulton. In Fulton, the Seventh Circuit found that the City of Chicago violated the automatic stay by refusing to turn over cars automatically that had been impounded for unpaid parking fines when a bankruptcy case is filed. As indicated in my recent E-Newsletter, there is a split in the Circuits on whether the automatic stay under Section 362 imposes an affirmative duty on creditors to immediately turn over repossessed property after a filing, or whether simply holding property is not an affirmative act and therefore not a stay violation.
Once the Supreme Court decides this case we will update you. Stay tuned!
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Kelley Kronenberg is a multi-practice business law firm with nearly 400 employees, more than 175 attorneys and 11 locations throughout Florida and the United States. Founded in 1980, the firm is one of the fastest-growing law firms in Florida and amongst the largest in the U.S. The firm serves all types and sizes of public and private companies, including small businesses and individuals nationwide. Kelley Kronenberg has been recognized amongst the “Largest U.S. Law Firms” by the National Law Journal’s NLJ 500, Law 360 400, and Florida Trend in 2020, “America’s Top Corporate Law Firms” by Forbes and “Top 10” in NLJ’s Women’s Scorecard in 2019. The firm has been the recipient of many accolades most recently including in 2020: “Best Multi-Practice Business Law Firm – USA,” Acquisition International; “Top Workplaces,” Sun Sentinel; “Best Places to Work,” South Florida Business Journal; “Business of the Year,” “Top 100 Private Companies,” “Top Law Firms,” and “Largest Law Firms,” South Florida Business Journal; “Largest Law Firms,” Tampa Bay Business Journal, Orlando Business Journal, and Jacksonville Business Journal; “Biggest Law Firms in Florida,” Florida Trend; “Top 100 Law Firms,” South Florida Business & Wealth; Florida’s Largest Law Firms,” American Lawyer’s, Daily Business Review “Review 100” and “Best Law Firms,” U.S. News – Best Lawyers®. For more information, visit www.kklaw.com.
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