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Irving Picard has cleared a big hurdle. On Thursday, Southern District Bankruptcy Court Judge Burton Lifland refused to dismiss a $1 billion suit that Mr. Picard had filed against the family of the late Stanley Chais, who was one of Mr. Madoff’s largest investors. This appears to be the first time that Judge Lifland, who is overseeing the bankruptcy proceedings of Bernard L. Madoff Investment Securities, has addressed substantive arguments raised by one of Mr. Picard’s targets in a motion to dismiss. In re Bernard L. Madoff Investment Securities/Picard v. Estate of Stanley Chais, 08-01789.

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