Forty-two state Attorneys General have signed on to a National Association of Attorneys General letter in support of H.R. 4421, which seeks to limit forum shopping in chapter 11 cases by limiting the jurisdiction in which a debtor may file to the jurisdiction where its principal assets are located or the jurisdiction where its principal assets are located. [NAAG; Feb. 20, 2020]

In U.S. v. Chesteen (In re Chesteen) the Fifth Circuit Court of Appeals recently held that a debt owed to the IRS under the Affordable Care Act’s shared responsibility payment provisions is not an excise tax entitled to payment priority under section 507(a)(8)(E)(I) of the Bankruptcy Code. [5th Cir.; Feb. 20, 2020]

The Second Circuit Court of Appeals recently issued a summary order in Marsh USA Inc. v. The Bogdan Law Firm (In re Johns-Manville Corp.) finding that the estate of an insulation worker could not seek compensation from an insurance company in Mississippi state court and was, instead, limited to seeking compensation from a trust established in 1986 in connection with Johns-Manville’s bankruptcy. The court determined that the future claims representative appointed in connection with the Johns-Manville bankruptcy adequately represented the worker’s interests, which resulted in a court order restricting the worker and other claimants from seeking compensation outside of the channeling trust structure. [2nd Cir.; Feb. 19, 2020]

Law360 reports that Boy Scouts of America is seeking a quick emergence from Chapter 11 that will allow it to preserve the organization’s mission while dealing with sexual abuse claimants fairly (likely through a channeling trust). Counsel to the Boy Scouts is currently seeking to channel the sexual abuse claims against Boy Scouts of America to the United States District Court for the District of Delaware. [Law360; Feb. 19, 2020]