234 results for 'cat:"Bankruptcy"'.
J. Rosenthal finds that a salon company, which recovered only a fraction of their damages in bankruptcy court after a construction contractor filed for bankruptcy during construction of a salon and did not complete the project, cannot pursue fraudulent inducement claims against the family that operated the construction firm. The salon company argues this case involves a different cause of action from the claim adjudicated during bankruptcy proceedings, but the court finds that the facts asserted in both claims center on the construction company entering a contract it did not intend to complete. The fraudulent inducement claim is barred by the prior proceeding, so the suit is dismissed.
Court: USDC Southern District of Texas, Judge: Rosenthal, Filed On: May 6, 2024, Case #: 4:23cv2408, NOS: Other Fraud - Torts - Personal Property, Categories: bankruptcy, Fraud
J. Forrest vacates a district court order staying a securities fraud action pending completion of a Chapter 11 bankruptcy case and remands the matter. The matter arises from a group of retirement and pension funds which filed a consolidated putative securities class action against PG&E Corp., Pacific Gas & Electric Co., and some of its current and former officers, directors, and bond underwriters. PG&E filed for Chapter 11 bankruptcy which automatically stayed the action against PG&E but not the individual defendants. The district court abused its discretion in ordering the stay as to the individual defendants.
Court: 9th Circuit, Judge: Forrest, Filed On: May 3, 2024, Case #: 22-16711, Categories: bankruptcy, Securities, Class Action
J. Kirsch finds that the lower court properly ordered the bankruptcy trustee to return her fee because the debtor's plan was never confirmed, even though he made payments under a proposed plan. The trustee is not entitled to a fee for pre-confirmation payments when the court dismissed the bankruptcy proceedings for unreasonable delay. Affirmed.
Court: 7th Circuit, Judge: Kirsch, Filed On: May 3, 2024, Case #: 23-2212, Categories: bankruptcy
J. Rushing finds the lower court properly dismissed the consolidated appeals for lack of jurisdiction. A party to litigation may not immediately appeal a civil contempt order. Instead, the sanctioned party must wait until the final judgment to appeal. The same rule applies in bankruptcy, except the relevant final judgment may be a decree ending the entire case or a decree ending a discrete proceeding within the bankruptcy case. In the two orders underlying the appeals, the bankruptcy court held the asbestos claimants in contempt and sanctioned them for defying a discovery order. Because the contempt and sanctions orders do not terminate a procedural unit separate from the remaining bankruptcy case, they are not final appealable orders. Affirmed.
Court: 4th Circuit, Judge: Rushing , Filed On: April 29, 2024, Case #: 22-1981, Categories: bankruptcy, Jurisdiction, Asbestos
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J. Smith finds the bankruptcy court improperly denied the Electric Reliability Council's motion to abstain. The energy company filed for bankruptcy after receiving a bill for nearly $300 million resulting from the council's production-incentivizing price manipulation in response to the 2021 winter storm in Texas. The council sought payment and the energy company initiated an adversarial proceeding challenging its proof of claim. The council moved to dismiss, alternatively requesting the bankruptcy court abstain. Though the circuit finds the council is not an arm of the state, and not entitled to immunity, the U.S. Supreme Court requires abstention under guiding case law. Texas’s interest in utility regulation and litigation, and its protection of the electricity-related public interest, is the more significant concern. Reversed.
Court: 5th Circuit, Judge: Smith , Filed On: April 29, 2024, Case #: 22-20603, Categories: Administrative Law, bankruptcy, Energy
Per curiam, the circuit finds that the district court properly dismissed class securities fraud claims brought after a spinoff of Honeywell International filed for Chapter 11 bankruptcy due to legacy asbestos indemnity issues because the class failed to plead scienter with sufficient specificity to establish that the spinoff recklessly assured investors of its financial health while planning for bankruptcy. Affirmed.
Court: 2nd Circuit, Judge: Per curiam, Filed On: April 17, 2024, Case #: 23-668-cv, Categories: bankruptcy, Fraud, Securities
J. Clay finds the reinstatement order issued by the trial court is not barred by judicial estoppel as a result of the employee's failure to file notice of her employment lawsuit during bankruptcy proceedings. The order had no bearing on the employee's distribution of debts and was unrelated to any potential damages. Meanwhile, the court lacks jurisdiction over the award of damages and attorney fees to the employee because none of those orders were finalized by the lower court; therefore, the remainder of the appeal will be dismissed. Affirmed.
Court: 6th Circuit, Judge: Clay, Filed On: April 17, 2024, Case #: 22-5761, Categories: bankruptcy, Civil Procedure, Employment
J. Duncan finds the bankruptcy court improperly found the borrower's debt to be dischargeable. The court found certain limiting language in the applicable code means that listed non-dischargeability exceptions apply only to an individual debtor and not to an LLC. However, Fourth Circuit precedent shows the bankruptcy code subchapter at issue is a compromise that allows small business debtors certain specific benefits while still subjecting them to dischargeability exceptions also applicable to individual debtors. Reversed.
Court: 5th Circuit, Judge: Duncan , Filed On: April 17, 2024, Case #: 23-50237, Categories: bankruptcy, Banking / Lending
J. Hanes finds the bankruptcy court properly denied an exemption to the debtor's home - owned jointly with his wife as tenants by the entirety - from the bankruptcy estate to the extent of his outstanding tax debt to the Internal Revenue Service. Property owned as a tenancy by the entirety may not be exempted from an individual debtor’s bankruptcy estate. Affirmed.
Court: 4th Circuit, Judge: Hanes, Filed On: April 17, 2024, Case #: 22-1964, Categories: bankruptcy, Property
J. Hansen finds that partners in a business that broke up during a mortgage default are still liable for the remaining debt after foreclosure per the clear, enforceable language of the mortgage agreement. One of the partners in the business break-up, who controlled the mortgage, is liable for indemnification of the other partners under the applicable laws. An issue of fact as to which partner signed the mortgage shall be resolved at trial.
Court: USDC Southern District of Texas, Judge: Hansen, Filed On: April 16, 2024, Case #: 4:22cv3901, NOS: Other Contract - Contract, Categories: bankruptcy, Corporations, Debt Collection
J. Boardman denies the Trustee of the bankruptcy estate’s motion to dismiss this bankruptcy appeal. The court dismisses a compensation order for lack of jurisdiction, vacates the bankruptcy court’s denial of motion to dismiss, and remands the case back to the bankruptcy court for further proceedings. The bankruptcy court abused its discretion in denying the consumer’s motion to dismiss.
Court: USDC Maryland, Judge: Boardman, Filed On: April 15, 2024, Case #: 8:23cv3135, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy, Civil Procedure, Jurisdiction
J. Finkle dismisses a debtor's appeal of the bankruptcy court's rejection of his objection to the Massachusetts Department of Revenue's proof of claim. The debtor lacks standing to appeal because his chapter 13 case was converted into a chapter 7 case.
Court: 1st Circuit, Judge: Finkle, Filed On: April 11, 2024, Case #: 22-041 , Categories: bankruptcy, Jurisdiction
J. Ledet finds that the trial court should not have denied an employee's exception of no cause of action on a claimant's allegation that she was injured by the employee. In this case, the claimant is judicially estopped from recovering damages because she filed a voluntary petition for Chapter 13 bankruptcy in the United States Bankruptcy Court and did not disclose any pending or potential lawsuits, including the instant matter. Reversed.
Court: Louisiana Court Of Appeal, Judge: Ledet, Filed On: April 4, 2024, Case #: 2024-C-0126, Categories: bankruptcy, Civil Procedure
J. Oldham finds the bankruptcy court improperly held the company in civil contempt and ordered it to pay $239,000 in compensatory damages. The capital management company filed for bankruptcy and its founder objected to a $300 million unsecured claim settlement. The founder filed suit in the district court through another of his companies, alleging the company involved in bankruptcy withheld material information and engaged in self-dealing related to the settlement. The other company then moved for leave to amend to add the bankruptcy restructuring officer as a defendant. The bankruptcy court found the motion constituted “pursu[it] of a claim” against the officer in violation of his order. Fees awarded to the company involved in bankruptcy bore no connection to redressing the other company's decision to file the motion in the wrong court. Vacated.
Court: 5th Circuit, Judge: Oldham , Filed On: April 4, 2024, Case #: 22-11036, Categories: bankruptcy, Contempt, Sanctions
J. Lagoa finds that 11 U.S.C. § 109(a) does not apply to Chapter 15 cases and doesn't establish a prerequisite for the recognition of a foreign proceeding. Affirmed.
Court: 11th Circuit, Judge: Lagoa, Filed On: April 3, 2024, Case #: 22-11024, Categories: bankruptcy
J. Spraker reverses, in part, the bankruptcy court's dismissal of an attorney's claims the California State Bar's efforts to collect discovery sanctions and disciplinary costs violated a stay. Although the debts were non-dischargeable when her case converted to chapter 7, an automatic stay prevented it from pursuing the costs during the pendency of her case. Reversed in part.
Court: 9th Circuit, Judge: Spraker, Filed On: April 2, 2024, Case #: CC-23-1024-SFL, Categories: bankruptcy
J. Baker finds that the trial court properly allowed an investment fund to first plead its affirmative defense of judicial estoppel on an investor's malicious prosecution claim after the pretrial deadline. However, it was error to grant the fund's motion for summary judgment since the investor's claim did not accrue until an underlying federal bankruptcy suit was dismissed and the claim was assigned to the investor. Reversed.
Court: Montana Supreme Court, Judge: Baker, Filed On: April 2, 2024, Case #: DA 23-0246, Categories: bankruptcy, Civil Procedure, Malicious Prosecution
J. Boulware denies the real estate broker's motion for summary judgment on multiple allegations against other brokerage entities involving theft of trade secrets stemming from nondisclosure agreements from a brokerage acquired from bankruptcy proceedings and the new employment of its brokers. There are disputed facts as to whether a new employer took intentional acts to disrupt the confidentiality provisions of a contract. Factual issues remain on key elements of the causes of action.
Court: USDC Nevada, Judge: Boulware , Filed On: March 31, 2024, Case #: 2:15cv531, NOS: Other Contract - Contract, Categories: bankruptcy, Real Estate, Trade Secrets
J. Spraker upholds the bankruptcy court's order sustaining a creditor's objection to a debtor's homestead exemption claim. Under California law, two structures on one property - one the debtor's home and the other a rental - are not considered a single unit for homestead exemption purposes. Affirmed.
Court: 9th Circuit, Judge: Spraker, Filed On: March 29, 2024, Case #: CC-23-1120-SGC , Categories: bankruptcy, Property
J. Dick affirms a bankruptcy court ruling a “mom and pop” repair company proved its exception to the Chapter 13 protection of a homeowner, who converted a final payment of insurance proceeds for flood damage to his own use, causing substantial damage to the contractor. The contractor testified he was forced into personal debt from neck surgery after the homeowner failed to pay him. The homeowner “knowingly breached his clear contractual obligation to pay” the contractor when he kept the final check. Affirmed.
Court: USDC Middle District of Louisiana, Judge: Dick, Filed On: March 28, 2024, Case #: 3:23cv625, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy, Construction, Damages
J. Whitney partially grants default judgment to an insurance company after its insured breached a general indemnity agreement. The insured, a contractor, failed to pay on a surety bond provided by the company of over $6.9 million. The company is entitled to this amount but cannot access the disbursement until after an underlying bankruptcy case against the insured is resolved.
Court: USDC Western District of North Carolina, Judge: Whitney, Filed On: March 28, 2024, Case #: 3:22cv50, NOS: Other Contract - Contract, Categories: bankruptcy, Insurance, Contract
J. Hanks denies an appeal of a bankruptcy court order that denied, a property owner reconsideration in reopening a bankruptcy case related to the foreclosure of a home. The bankruptcy court dismissed the case because council for the property owner failed to appear at a hearing. The failure to appear, as well as abusive communication and a pattern of ignoring the court’s valid rejections, suggests an intentional delay that warrants dismissal with prejudice.
Court: USDC Southern District of Texas, Judge: Hanks, Filed On: March 28, 2024, Case #: 4:23cv2674, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy, Civil Procedure
J. Mazzant affirms the judgment of the bankruptcy court in favor of co-trustees seeking to recover on a $3.2 million debt owed for violations of securities laws stemming from allegations the decedent's investments in a company were fraudulently procured. The debt was nondischargeable under the Bankruptcy Code since it resulted from a state court judgment for "violations of securities laws or fraud in connection with the sale or purchase of securities."
Court: USDC Eastern District of Texas , Judge: Mazzant, Filed On: March 28, 2024, Case #: 4:23cv109, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy, Securities
J. Flanagan denies a couple’s motion for certification of direct appeal to the U.S. Court of Appeals on a bankruptcy case. The couple also petitioned the bankruptcy court after previously filing for Chapter 13 bankruptcy to incur debt and finance the purchase of a house so that they could live close to their child’s private school. The bankruptcy court denied this petition as the couple is not allowed to incur more than $10,000 while in bankruptcy. Also, the couple has not shown sufficient evidence that they are qualified for certification for a direct appeal to the court of appeals.
Court: USDC Eastern District of North Carolina, Judge: Flanagan, Filed On: March 27, 2024, Case #: 5:23cv373, NOS: Bankruptcy Appeal 28 USC 158 - Bankruptcy, Categories: bankruptcy, Real Estate
J. Mitchell finds the trial court improperly ruled when finding a builder in breach of contract, as alleged by the city, when a project developer went bankrupt and the bank failed to finish the roads for the subdivision. The builder should not have been held responsible for the bank's contractual breach. Reversed.
Court: Alabama Supreme Court, Judge: Mitchell, Filed On: March 22, 2024, Case #: SC-2023-0612, Categories: bankruptcy, Construction, Contract