Case Roundup du jour

1st Circuit

Baena v. KPMG LLP (06/22/06 - No. 05-2868)

Dismissal of suit against an accounting firm that failed to notify corporate directors of irregularities in accounting is affirmed where the suit was barred by the in pari delicto doctrine since the wrongful actions of the corporate officers could be imputed to the company as a whole.

Sterling Consulting Corp. v. IRS (06/23/06 - No. 03-1809)

Sanctions order against the IRS is vacated where the order was reviewable and the behavior that triggered the sanctions was not arguably improper.

8th Circuit

Gulfcoast Workstation Corp. v. Peltz (06/23/06 - No. 05-2984)

In a chapter 11 bankruptcy case, judgment for a court-appointed plan administrator in his adversary proceeding seeking to avoid certain alleged preferential transfers is affirmed where the bankruptcy court properly found that a creditor failed to establish the third prong of the ordinary course defense, and abandoned its new value defense.