238 results for 'cat:"Bankruptcy"'.
J. Richardson finds the lower court improperly accepted the bankruptcy court’s partial dismissal of one of two claims seeking to recoup money owed by an unlicensed contractor who declared bankruptcy to get out of paying the debt for working unlicensed to the homeowner as a final judgment applicable to review. The homeowner sought a declaration of the money owed and for the court to pronounce the debt non-dischargeable, but in bankruptcy courts, both claims must succeed for the results to be fruitful to the homeowner. The homeowner hatched a plan to make the bankruptcy court’s order final by voluntarily dismissing the surviving claim without prejudice, immediately appealing the court-dismissed claim, and deciding afterward whether it was worth further litigating the party-dismissed claim. Parties are not allowed to manufacture finality like this. Vacated.
Court: 4th Circuit, Judge: Richardson , Filed On: September 14, 2023, Case #: 22-1216, Categories: bankruptcy, Construction
J. Blumenfeld affirms the bankruptcy court's orders regarding a debtor's home, which was listed as community property in divorce proceedings, and was the primary asset of the bankruptcy estate. The debtor failed to reinvest her half of the homestead funds in an eligible dwelling as required under California law, therefore her homestead exemption lapsed. The debtor did not timely file a motion to amend the turnover and sale orders.
Court: USDC Central District of California, Judge: Blumenfeld, Filed On: September 6, 2023, Case #: 8:22cv1951, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy
J. Walter affirms the bankruptcy court's order denying a debtor and insurer's motion for preliminary injunction and affirms the bankruptcy court's dismissal of the debtor and insurer's appeal. The debtor filed a voluntary chapter 7 petition during a personal injury suit after she hit a highway patrol officer during a traffic stop, causing extensive injuries. The insurer funded the debtor's defense, refused to settle for policy limits, and settled with the debtor to prevent her from pursuing bad faith claims for failure to settle. A jury returned a verdict in favor of the officer in the personal injury trial. The personal injury appeals are property of the estate. The bankruptcy court did not err in dismissing the debtor's appeal, which was largely based on arguments made in prior appeals that had been rejected, multiple times.
Court: USDC Central District of California, Judge: Walter, Filed On: September 6, 2023, Case #: 2:23cv4286, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy
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J. Silva affirms the Bankruptcy Court's finding that the business owner owed the investment company a non-dischargeable debt as being a product of the fraudulent concealment of information on loans. Investors testified that they would not have made investments had they been apprised of the "loose way" in which the owner was operating his business. The owner says that such evidence is not “loan specific” without citing any case law and the Bankruptcy Court’s findings are “plausible in light of the record viewed in its entirety” by application of the clear error standard.
Court: USDC Nevada, Judge: Silva , Filed On: September 1, 2023, Case #: 2:19cv649, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy, Business Practices, Banking / Lending
J. Chin finds that the district court properly upheld civil contempt sanctions and attorney fees in claims contending a debtor's attorney failed to comply with discovery orders seeking U.S. assets related to involuntary bankruptcy proceedings in Russia. The bankruptcy court had inherent authority to impose civil contempt sanctions of $1,000 per day, or $55,000, and $36,000 in attorney fees, and the attorney had ample notice of the likelihood that such would be imposed given his willful disregard of orders to turn over documents responsive to subpoenas. Affirmed.
Court: 2nd Circuit, Judge: Chin, Filed On: August 30, 2023, Case #: 21-2238, Categories: bankruptcy, Sanctions, Discovery
J. Gan upholds the bankruptcy court's denial of a bakery's motion to assume and assign a settlement agreement that provides for the release of the bakery's $46 million liability to a pension fund. The agreement is not considered an executory contract because the fund's obligation to release the bakery's liability is not due until the bakery pays the agreed-upon $3 million settlement. Affirmed.
Court: 9th Circuit, Judge: Gan, Filed On: August 29, 2023, Case #: EC-23-1001-GLB, Categories: bankruptcy, Settlements
J. Nathan finds that the district court properly held that a business decision to sell profitable parts before filing Chapter 7 bankruptcy constituted self-dealing and fraudulent transfer. The director who hatched the plan, which collapsed on its own shortly after being implemented, breached fiduciary duties by failing to seriously consider third-party offers, which illustrated her fraudulent intent. Meanwhile, the damages assessment totaling $39.2 million was rooted in future earnings of profitable assets. Affirmed.
Court: 2nd Circuit, Judge: Nathan, Filed On: August 28, 2023, Case #: 21-2547; 21-2576, Categories: bankruptcy, Fraud, Fiduciary Duty
J. Cabranes finds that the district court properly established jurisdiction in a bankruptcy trustee's claims of breach of state securities law concerning a plan for refinancing a complex credit agreement just days before a Chapter 11 filing. Because one participant in the credit agreement assigned part of its interest to foreign lenders, federal jurisdiction applied. Furthermore, dismissal of the securities claims was appropriate because the trustee failed to plausibly allege that the notes created in the agreement constituted "securities" issued in an investment context. Affirmed.
Court: 2nd Circuit, Judge: Cabranes, Filed On: August 24, 2023, Case #: 21-2726-cv, Categories: bankruptcy, Jurisdiction, Banking / Lending
[Consolidated.] J. Messitte denies a debtor and his wife in forma pauperis regarding filing fees for appeals moved from bankruptcy court. In order to file for chapter 13 bankruptcy, a debtor must prove they have the income to repay their debt over time, so typically, and presently, in forma pauperis is not approved for bankruptcy cases.
Court: USDC Maryland, Judge: Messitte, Filed On: August 23, 2023, Case #: 8:23cv1697, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy
J. Wilson finds the bankruptcy court properly applied law-of-the-case doctrine in granting summary judgment to the investment company which held the note on the other investment company’s building, which was being foreclosed-upon during that company’s bankruptcy proceedings. A cited, prior bankruptcy court order is internally contradictory and not instructive on whether it actually decided the correct amount that the company owed to the note holder. The court defers to the bankruptcy court’s reasonable interpretation that the company did own money. Affirmed.
Court: 5th Circuit, Judge: Wilson, Filed On: August 18, 2023, Case #: 22-30602, Categories: bankruptcy, Debt Collection, Foreclosure
J. Gottschall denies a banking services company’s motion to dismiss a construction company’s breach of contract claims against it, but grants its motion to transfer the case to the District of Southern Texas. The court finds that is a more appropriate venue for this contract dispute, as that is where the construction company’s Chapter 11 bankruptcy case is pending.
Court: USDC Northern District of Illinois, Judge: Gottschall, Filed On: August 18, 2023, Case #: 1:22cv1449, NOS: Negotiable Instrument - Contract, Categories: bankruptcy, Construction, Contract
J. Quattlebaum finds that the lower court improperly held that the bankruptcy code preempts the debtor's state law claims arising from alleged improper collection attempts of a discharged debt. The state law claims providing broader remedies than federal laws does not mean the state law claims are preempted when taking into account that the bankruptcy code seeks to give debtors a fresh start. Vacated in part.
Court: 4th Circuit, Judge: Quattlebaum , Filed On: August 18, 2023, Case #: 22-1248, Categories: bankruptcy, Debt Collection, Choice Of Law
[Consolidated.] J. Gonzalez remands to state courts a total of 10 Child Victims Act cases filed against parishes, schools and other organizations related to the Diocese of Rockville Centre, actions which were removed to federal court after the diocese filed for Chapter 15 bankruptcy protection. The court finds the litigants’ respective claims are related to the bankruptcy proceedings and subsequently meet the criteria for mandatary abstention.
Court: USDC Eastern District of New York, Judge: Gonzalez, Filed On: August 17, 2023, Case #: 1:23cv5059, NOS: Other Personal Injury - Torts - Personal Injury, Categories: bankruptcy, Tort, Jurisdiction
J. Hall upholds the bankruptcy court's approval of a settlement between a chapter 7 trustee and the debtor's estranged spouse regarding three vehicles, which were shared community property. The debtor fails to show the bankruptcy court's decision to approve the settlement was arbitrary or capricious. Affirmed.
Court: 10th Circuit, Judge: Hall, Filed On: August 14, 2023, Case #: 23-006 , Categories: bankruptcy, Settlements
Per curiam. The Eighth Circuit finds a lower court properly dismissed an architectural management company's infringement claims against a bank. The management company argued that the bank, which purchased an uncompleted building in bankruptcy court, infringed on an architect's copyright by completing architectural plans without permission. However, the bank presented sufficient evidence in court that the management company's allegations are precluded by the bankruptcy court's approval of the acquisition. Affirmed.
Court: 8th Circuit, Judge: Per curiam, Filed On: August 11, 2023, Case #: 22-1976, Categories: bankruptcy, Real Estate, Contract
J. Chasanow partially affirms the bankruptcy court’s partial summary judgment granted to a debtor who filed for bankruptcy after his property was bid upon by a buyer when the debtor didn’t pay his property taxes. The buyer bid on the property but did not pay the full amount before the debtor filed for bankruptcy, preventing completion of the sale. The bankruptcy court was correct in granting partial summary judgment, so foreclosure is avoided and the title stays with the debtor.
Court: USDC Maryland, Judge: Chasanow, Filed On: August 11, 2023, Case #: 8:22cv2694, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy, Property, Foreclosure
J. Collins finds that the district court properly affirmed a bankruptcy court’s judgment in favor of the United States in an adversary proceeding brought by the former chief financial officer of a company as a Chapter 13 debtor. The bankruptcy court’s judgment was sufficiently “final” because it fully disposed of the claims raised in an adversary complaint. Affirmed.
Court: 9th Circuit, Judge: Collins, Filed On: August 11, 2023, Case #: 20-56047, Categories: bankruptcy