238 results for 'cat:"Bankruptcy"'.
J. Spraker upholds the bankruptcy court's finding that a creditor did not forfeit its secured claim against an LLC when the owner sold property jointly owned by herself and the LLC. The creditor was not required to bring a compulsory counterclaim against a non-party.
Court: 9th Circuit, Judge: Spraker, Filed On: June 28, 2023, Case #: AZ-22-1130-SFL , Categories: bankruptcy
[Consolidated.] J. Spraker reverses the bankruptcy court's confirmation of a debtor's plan. A secured creditor that did not vote for the plan has shown the debtor's "unsupported optimism" does not establish a reasonable likelihood she could make plan payments. Reversed.
Court: 9th Circuit, Judge: Spraker, Filed On: June 23, 2023, Case #: CC-22-1246-SGF, Categories: bankruptcy
J. Anderson finds that the district court improperly determined the appropriate remedy for the constitutional violation alleged in a bankruptcy action brought by the debtors claiming that they are entitled to a refund of the increased portion of trustee fees that they were required to pay throughout 2018 and after until Congress equalized the fees in the Bankruptcy Administration Improvement Act of 2020. The proper remedy is for the debtors to receive refunds. Vacated.
Court: 11th Circuit, Judge: Anderson, Filed On: June 23, 2023, Case #: 20-12547, Categories: bankruptcy
J. Wright grants the bankruptcy trustee's motion for pre- and post-judgment interest in his suit against the bank alleging breaches of fiduciary duty and fraud in connection with the Tom Petters Ponzi scheme, and denies both parties' motions for judgment as a matter of law and the bank's motion for a new trial or conditional remittur. Prejudgment interest questions are governed by Minnesota law in this case, not federal law. Issues regarding the availability of various defenses to the bank were also properly placed before the jury, and the jury's verdict and decisions could be reasonably arrived at with the evidence provided at trial, including a decision imposing sanctions on the bank for destruction of evidence.
Court: USDC Minnesota, Judge: Wright, Filed On: June 23, 2023, Case #: 0:19cv1756, NOS: Bankruptcy Withdrawal 28 USC 157 - Bankruptcy, Categories: bankruptcy, Fraud, Fiduciary Duty
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J. Ashe denies a request by the Roman Catholic Archdiocese of New Orleans to dismiss disability discrimination claims against it in bankruptcy court by parents of disabled children seeking to enroll in New Orleans-area Catholic schools. The archdiocese unpersuasively argued that the parents’ complaints are moot because the archdiocese has voluntarily removed the allegedly biased questions from school admissions applications. The district court has no jurisdiction over the parents’ claims against the church, which are pending both in state court and in bankruptcy court.
Court: USDC Eastern District of Louisiana , Judge: Ashe, Filed On: June 23, 2023, Case #: 2:22cv4552, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy, Civil Procedure, Jurisdiction
J. St. Eve finds that the bankruptcy court properly dismissed the trustee's lawsuit alleging that the debtor orchestrated a payoff agreement weeks before it declared bankruptcy as part of an attempt to keep its Ponzi scheme running just a little bit longer. The payoff agreement was not avoidable because it does not qualify as a transfer of "an interest of the debtor in property." Affirmed.
Court: 7th Circuit, Judge: St. Eve, Filed On: June 22, 2023, Case #: 22-2436, Categories: bankruptcy
J. Ashe affirms a bankruptcy court ruling ordering an attorney for alleged victims of clerical sex abuse to pay $400,000 in sanctions for leaking confidential case information about an accused priest to a journalist. The court cannot condone an attorney’s deliberate decision to violate a court order, no matter how noble his motivation, so it has no reservation in upholding the bankruptcy court’s finding that the plaintiff attorney’s conduct was “contemptuous, wasteful, and warranted the imposition of sanctions.” Affirmed.
Court: USDC Eastern District of Louisiana , Judge: Ashe, Filed On: June 21, 2023, Case #: 2:22cv1740, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy, Contempt, Sanctions
J. Agee finds the lower court properly affirmed a bankruptcy court order that entered a preliminary injunction preventing thousands of third-party asbestos claims from proceeding against the wallboard company, owned by Georgia-Pacific and its affiliates. The purpose of the bankruptcy would be defeated without the injunction because the company would be unable to address all the claims against it in one forum. Affirmed.
Court: 4th Circuit, Judge: Agee, Filed On: June 20, 2023, Case #: 22-1127, Categories: bankruptcy, Asbestos
[Consolidated.] J. Nalbandian finds the lower court erroneously determined the creditor's second bankruptcy notice was untimely filed. Although it fell outside the initial 14-day window, the bankruptcy court extended the filing window after the initial notice was defective. Therefore, the case must be remanded to allow the lower court to consider the merits of the claims properly preserved by the second notice. Reversed.
Court: 6th Circuit, Judge: Nalbandian, Filed On: June 16, 2023, Case #: 20-2273, Categories: bankruptcy, Civil Procedure
J. Jackson finds that the district court properly held that a lender is not entitled to tribal immunity from claims brought by the borrower because the tribal-owned business continued collection efforts after the borrower filed for bankruptcy, and bankruptcy code strips immunity from all government entities, including federally recognized tribes.
Court: US Supreme Court, Judge: Jackson, Filed On: June 15, 2023, Case #: 22-227, Categories: bankruptcy, Native Americans, Immunity
J. Heytens finds the lower court properly confirmed the Chapter 13 bankruptcy plan. Chapter 13 bankruptcy filers who earn more than the median income can use their mortgage payments to calculate how much they can afford to pay unsecured creditors rather than the relevant local standard which would have deducted less. Affirmed.
Court: 4th Circuit, Judge: Heytens, Filed On: June 14, 2023, Case #: 22-1328, Categories: bankruptcy
J. Smith finds that the district court improperly reversed a bankruptcy court’s order requiring a standing Chapter 13 trustee to return her percentage fee when a case was dismissed prior to confirmation. The Ninth Circuit joined the Tenth Circuit in holding that a trustee is not entitled to a percentage fee of plan payments as compensation for work in a Chapter 13 bankruptcy matter. Reversed.
Court: 9th Circuit, Judge: Smith, Filed On: June 12, 2023, Case #: 22-35216, Categories: bankruptcy
[Consolidated.] J. Jones finds the bankruptcy and district courts improperly approved two post-date class action settlements regarding the energy corporation’s failure to honor oil-and-gas lease market enhancement clauses prohibiting deduction of postproduction costs to transform extracted gas into a marketable form from lessors’ royalties. The post-confirmation bankruptcy jurisdiction does not extend to the agreements. The voluntary arrangements were already discharged by the bankruptcy. Affirmed and remanded with instructions to dismiss for lack of jurisdiction.
Court: 5th Circuit, Judge: Jones, Filed On: June 8, 2023, Case #: 21-20323, Categories: bankruptcy, Energy, Class Action
J. Hollander denies an attorney’s motion to dismiss professional negligence allegations brought by a bankruptcy client. The client retained the attorney to represent her when she filed for Chapter 13 bankruptcy, but he refused to seek relief from the stay and continued to bill her, prompting the current suit. Although there had been a delay in the attorney being served, it was only a day late and the client has good cause in the suit, so she is given a retroactive extension of time to serve the attorney.
Court: USDC Maryland, Judge: Hollander, Filed On: June 6, 2023, Case #: 1:22cv2639, NOS: Other Contract - Contract, Categories: bankruptcy, Negligence, Contract
J. Faris J. Faris finds the bankruptcy court properly allowed NetJets to pursue its $1.7 million claim against debtors. NetJets did not violate a bankrupt air transport company's discharge injunction when it went after its owner for the debt, as a discharge injunction does not protect a debtor's alter egos. Affirmed.
Court: 9th Circuit, Judge: Faris, Filed On: June 2, 2023, Case #: NC-23-1008-FSG , Categories: bankruptcy
J. Barbier grants summary judgment to the Federal National Mortgage Association establishing the liability of the owner of six separate borrowers, all of which are the owner’s limited liability companies, which are all now in bankruptcy. The fact that the borrowers filed for bankruptcy automatically accelerated the federal loan, and the borrowers became personally liable for all payments immediately due, without any written notice required from Fannie Mae.
Court: USDC Eastern District of Louisiana , Judge: Barbier, Filed On: June 2, 2023, Case #: 2:22cv2588, NOS: Other Contract - Contract, Categories: bankruptcy, Housing, Banking / Lending
[Corrected.] J. Gan upholds the bankruptcy court's order avoiding an airport business center's judicial lien against a couple who were discharged after filing their chapter 7 petition. The center lacked standing to assert usury and it could not support its defense of laches.
Court: 9th Circuit, Judge: Gan, Filed On: June 1, 2023, Case #: NC-22-1219-GFB , Categories: bankruptcy
J. Vance denies a request by a creditor of a bankrupt landlord for sanctions against a commercial tenant for an allegedly “frivolous” appeal of a bankruptcy court ruling favoring the creditor for the collection of allegedly unpaid rent. The appeal was “ultimately resolved by authorities neither litigant cited, none of which was a clear, unambiguous” holding of the Fifth Circuit or the Louisiana Supreme Court. The matter is therefore distinguishable from the type of appeals that have been found to be sanctionable.
Court: USDC Eastern District of Louisiana , Judge: Vance, Filed On: May 31, 2023, Case #: 2:22cv4167, NOS: Other Fraud - Torts - Personal Property, Categories: bankruptcy, Landlord Tenant, Sanctions
[Consolidated.] J. Lee finds that the district court improperly held that the bankruptcy court could not include the release of creditor lawsuits against the non-debtor Sackler family in Purdue Pharma's Chapter 11 reorganization plan. The bankruptcy code permits the founding family to contribute billions of dollars toward bankruptcy in exchange for ending all civil claims concerning the opioid epidemic tied to prescription OxyContin developed by Purdue. Reversed in part.
Court: 2nd Circuit, Judge: Lee, Filed On: May 30, 2023, Case #: 22-110-bk (L), Categories: Administrative Law, bankruptcy, Fraud
Per curiam, the circuit finds that the district court properly reopened an involuntary Chapter 11 action to pay attorney fees for post-confirmation services because billing was closely reviewed and adjusted. Affirmed.
Court: 2nd Circuit, Judge: Per curiam, Filed On: May 26, 2023, Case #: 22-851, Categories: bankruptcy, Attorney Fees