Case News

Bankruptcy Law Case Summaries

[12/04] In Re Irving Tanning Company
Affirming bankruptcy court and district court rulings that a transaction involving the debt-financed purchase of a family owned leather manufacturer was not a fraudulent conveyance and did not amount to a violation of the fiduciary duties of the company's directors because the factual determinations were not clearly erroneous and supported the court's conclusions.

[11/21] In Re Charlene M. Milby
Affirming the judgment of the Bankruptcy Appellate Panel reversing the bankruptcy court's dismissal of a bankruptcy estate's claims seeking avoidance of fraudulent transfers as time-barred and affirming the bankruptcy court's dismissal of other claims based on transfers not made by the debtor.

[11/16] In Re: Laura M. Sheedy
Affirming the bankruptcy court's refusal to approve a motion for an extension of time to file a notice of appeal that occurred because the appellant's attorney was preoccupied with her second job as a church music director because this did not constitute excusable neglect and the court did not abuse its discretion in reaching this determination.

[11/16] In Re: Laura M. Sheedy
Affirming the bankruptcy court's refusal to approve a motion for an extension of time to file a notice of appeal that occurred because the appellant's attorney was preoccupied with her second job as a church music director because this did not constitute excusable neglect and the court did not abuse its discretion in reaching this determination.

[11/15] In Re Kimberly Ann Zizza
Affirming the bankruptcy court's denial of Chapter 7 discharge to an attorney on the grounds that she made material, knowing, and fraudulent false oaths in the course of her bankruptcy proceedings by failing to disclose two lawsuits to which she was a party in her schedules and at her first creditors' meeting.

[10/24] In Re Pursuit Capital Management, LLC.
Affirming the district court's dismissal as moot a claim filed challenging a bankruptcy trustee's ability to sell certain property because the complaining party had failed to obtain a stay of the court's approval of the sale in a prior action.

[10/20] In Re MPM SIlicones, LLC
Largely affirming the lower court's support of a Chapter 11 reorganization plan despite creditor complaints that it eliminated or reduced the value of notes that they held because it comported with the Chapter 11 requirements, but remanding to address a deficiency relating to the determination of the proper interest rate under the cramdown provision of Chapter 11.

[10/16] In re Cherrett
In a bankruptcy action, the court held that the bankruptcy court's order denying a motion to dismiss debtor's Chapter 7 petition under 11 U.S.C. section 707(b) constitutes a final, appealable order and that the bankruptcy court did not err in finding debtor's housing loan from his employer to be a non-consumer debt.

[10/02] In Re Walldesign
Affirming the district court's order reversing the bankruptcy order that would have let a committee of unsecured creditors could recover fraudulently transferred funds solely from a corporate cheat because the appellate court agreed with the district court that the committee could also recover funds from the parties to whom the cheat made payments from the corporate account because the 'good guys' involved in these dealings were still in a better position than unsuspecting creditors to guard against corporate fraud.

[09/28] In Re J and S Properties LLC
Affirming the district court's support for a US Bankruptcy Court decision that qualified immunity applies to discretionary actions taken by a trustee to preserve a bankruptcy estate's assets.

[09/28] Higgins v. The Superior Court of San Diego County
Issuing an order to show cause and grant a petition for writ challenging the trial court's denial of a motion to dismiss on account of the failure by the case initiator to serve them with a summons and complaint within three years of the commencement of the action because the nondebtor party's service of process was not subject to a an automatic stay upon filing of the bankruptcy petition.

[09/22] In Re The Financial Oversight and Management Board for Puerto Rico
Reversing the district court's denial of a motion for intervention by the Official Committee of Unsecured Creditors in an adversarial proceeding against the Commonwealth of Puerto Rico, which was seeking debt adjustment under the Bankruptcy Code as incorporated in the Puerto Rico Oversight, Management, and Economic Stability Act because the Bankruptcy Code as incorporated includes an unconditional right to intervene.

[09/14] In Re: CWS Enterprises
Affirming the judgment of the state court confirming the arbitration award of contingency fees in the case of a party who sought to avoid the judgment by creating spinoff companies and entering into bankruptcy proceedings where the bankruptcy court's use of the lodestar method to determine the reasonableness of the attorney fees claimed because the contract that provided for these fees was not unreasonable or unconscionable.

[08/31] In Re DBSI, Inc.
Affirming decisions by the bankruptcy court and district court that the Congress had unambiguously abrogated sovereign immunity as it relates to actions associated with bankruptcy, an abrogation that extends to derivative 'applicable laws' such as Idaho's Uniform Fraudulent Transfer Act and the government could not rely on sovereign immunity to prevent the avoidance of the tax payments at issue.

[08/29] BRE DDR BR Whittwood CA LLC v. Farmers and Merchants Bank of Long Beach
Reversing a trial court summary judgement for the landlord in an action to recover rents from a lender that had received the interest in property held by a tenant in foreclosure that argued it should only pay the amount owed for the period in which they were in possession and the court agreed that the purchase of the leasehold in the case, identified in a deed of trust by reference to a lease, did not constitute an express agreement to assume the obligations of the lease.

[08/25] Rezende v. Ocwen Loan Servicing, LLC
Affirming a district court judgment on the pleadings for the defense because a mortgagor lacks standing to bring a quiet title action as long as the mortgage remains in effect, the court correctly found some claims time-barred, while other claims lacked support for conclusory assertions, among other procedural defects.

[08/24] DZ Bank Agdeutsche Zentral-Genossenschaft Bank v. Meyer
Reversing the district court's decision affirming a bankruptcy court judgment in favor of the creditor in a proceeding where they alleged that the debtors fraudulently transferred assets in order to place them out of the creditor's reach because although actual fraud occurred the bankruptcy court erred in limiting relief to the value of assets directly traceable to the creditor's security interest and holding that they could recover the full amount they would have been able to recover if they had been able to execute against the debtor's ownership interest in a closely-held corporation to which the debtor transferred the assets.

[08/16] Bank of New York Mellon v. Watt
Dismissing an appeal from a district court order vacating the bankruptcy court's confirmation of a Chapter 13 plan because they lacked jurisdiction over an order of this sort, which is not a final order that might be appealed and the parties did not seek the forms of certification that would have provided jurisdiction.

[08/15] In Re Rick H. Reynolds
Reversing the decision of the Bankruptcy Appellate Panel following the California Supreme Court's opinion answering a certified question regarding whether the creditors of the beneficiary of a spendthrift trust may reach the trust distributions and holding that the bankruptcy estate is entitled to the full amount of distributions due to be paid as of the date of the bankruptcy petition, but not any portion needed for support or education as long as the trust so specifies.

[08/09] In Re Pedro Lopez Munoz
Affirming the bankruptcy court's decision denying a creditor's motion to appoint a trustee for the bankruptcy estate to replace the debtor in possession of the estate because the petitioner for trusteeship failed to bear the burden of establishing the appointment's necessity, given the facts of the case.

[08/08] Hayden v. HSBC Bank USA
Affirming the district court's dismissal for failure to state a claim in the case of a couple who defaulted on their home loan, filed bankruptcy, and argued that an assignment was invalid and that the mortgage was obsolete because the assignment claim was foreclosed by precedent and the obsolescence claim had no basis in statute or precedent.

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