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Recoupment: Eighth Circuit Rejects ‘Balancing of the Equities’ Test
November 2012
The United States Court of Appeals for the Eighth Circuit recently held that equitable considerations could not prevent a creditor’s recouping amounts owed to it by a Chapter 7 debtor. Terry v. Standard Ins. Co. (In re Terry), 687 F.3d 961 at 965 (8th Cir. 2012). Reversing the bankruptcy court and the Bankruptcy Appellate Panel (BAP), the Eighth Circuit explained that “once a party meets the same-transaction test … a court should not impose an additional ‘balancing of the equities’ requirement” on the doctrine of recoupment. Id. Ending a three-year battle in three courts over the sum of $45,316, the court’s straightforward ruling resulted in a win for a disability insurer over a disabled individual. In reality, however, nobody won.
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The US Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) have overhauled Form PF and private fund managers have until March 12, 2025, to begin reporting on the new Form. The changes to the reporting requirements mandated by the amendments to the Form (“Form PF Amendments”) will require substantial preparation by many managers.[1]
Alerts
The US Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) have overhauled Form PF and private fund managers have until March 12, 2025, to begin reporting on the new Form. The changes to the reporting requirements mandated by the amendments to the Form (“Form PF Amendments”) will require substantial preparation by many managers.[1]