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§ 303

In re Ishaky

Ruling
Involuntary petition dismissed due to bona fide disputes and failure to establish debts were not paid as they became due.
Procedural posture

Pursuant to 11 U.S.C.S. § 303, petitioner creditors filed an involuntary petition under chapter 7 of the Bankruptcy Code against alleged debtors, including a property manager.

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Consumer opinion summary, case decided on March 11, 2010 , LexisNexis #0610-038

In re Self Enters. & Holdings LLC

Ruling
Involuntary case dismissed in best interests of all parties.
Procedural posture

The creditors filed an involuntary petition against a debtor under chapter 7. Movant, a member of the debtor, filed a motion requesting that the court dismiss, abstain, or grant relief pursuant to 11 U.S.C.S. §§ 707(a), 305(a)(1), or 362(d) so that she could pursue a state court action against the other holder to recapture property for the debtor. The creditors opposed the motion. The chapter 7 trustee filed a non-objection to dismissal.

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Commercial opinion summary, case decided on February 26, 2010 , LexisNexis #0610-072

In re Peterson

Ruling
Involuntary petition dismissed due to numerous contested claims.
Procedural posture

Petitioning creditors brought an involuntary petitions against alleged debtors under 11 U.S.C.S. § 303.

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Consumer opinion summary, case decided on February 05, 2010 , LexisNexis #0410-039

In re Fallon Luminous Prods. Corp.

Ruling
Order for chapter 7 relief filed against involuntary debtor that was not paying debts as they came due and whose debts were not subject to bona fide dispute.
Procedural posture

This matter was before the court on an Involuntary Petition filed by petitioning creditors, seeking an order for relief under chapter 7 against debtor. Debtor filed its Response to Involuntary Petition and Motion to Dismiss, requesting dismissal of the Involuntary Petition and seeking costs and damages under 11 U.S.C.S. § 303(i).

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Commercial opinion summary, case decided on January 20, 2010 , LexisNexis #0310-106

In re National Med. Imaging LLC

Ruling
Involuntary petitions dismissed as petitioning creditors were not real parties in interest and took inconsistent positions regarding parties responsible for debts owed.
Procedural posture

Petitioning creditors filed involuntary bankruptcy petitions under 11 U.S.C.S. § 303, claiming that putative debtors, two LLCs and the managing member of both LLCs, owed them unpaid debts. The managing member was allowed to move his case to the U.S. Bankruptcy Court for the Southern District of Florida, and that court granted the managing member's motion to dismiss. The LLCs filed a motion to dismiss the petitions that were filed against them.

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Commercial opinion summary, case decided on December 28, 2009 , LexisNexis #0210-001

In re Ransome Group Investors I LP

Ruling
Petitioning creditor in involuntary case not required to post bond pending resolution of bad faith issue absent cause.
Procedural posture

A petitioning creditor filed an involuntary bankruptcy petition against the alleged debtor. The debtor filed a motion to dismiss the involuntary petition on the grounds that the petition was filed in bad faith and that the creditor's claim was subject to a bona fide dispute within the meaning of 11 U.S.C.S. § 303(b). The debtor asked the court to require the creditor to post an indemnity bond pursuant to § 303(e) pending resolution of the issues.

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Commercial opinion summary, case decided on December 14, 2009 , LexisNexis #0410-072

In re BLX Group Inc.

Ruling
Dismissal of transfer of involuntary case denied where petitioning creditors were qualified and primary asset was located in district.
Procedural posture

Movant, the divorced former shareholder of the debtor, brought an expedited motion to dismiss the involuntary petition brought against the debtor for lack of subject matter jurisdiction because two of the petitioning creditors were not qualifying creditors under 11 U.S.C.S. § 303(b)(1), , alternatively, to transfer venue to the Central District of California, pursuant to 28 U.S.C.S. § 1412.

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Commercial opinion summary, case decided on October 15, 2009 , LexisNexis #1209-003

In re Pacific Rollforming LLC

Ruling
Involuntary case dismissed where one petitioning creditor acquired a claim solely to join the petition and in best interests of debtor and creditors.
Procedural posture

In a contested involuntary chapter 7 case, the debtor opposed entry of an order for relief on the ground that one or more of the petitioning creditors was not a qualified petitioner. Alternatively, the debtor contended that the court should abstain from proceeding with the case because abstention would be in the best interests of the debtor and its creditors.

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Commercial opinion summary, case decided on September 30, 2009 , LexisNexis #1109-037

In re Wave Energy Inc.

Ruling
Request for jury trial on eligibility of petitioning creditors in involuntary case denied.
Procedural posture

Creditors of an operator of natural gas wells filed an involuntary bankruptcy petition against the operator, and the operator denied that bankruptcy was warranted and requested a jury trial.

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Commercial opinion summary, case decided on September 03, 2009 , LexisNexis #1009-003

In re Smith

Ruling
Judgment that was not stayed pending appeal was not subject of bona fide dispute and was proper basis for involuntary case.
Procedural posture

A creditor filed an involuntary bankruptcy petition against a judgment debtor of the creditor, and the debtor moved to dismiss the petition on the grounds that the judgment was on appeal, that at least three creditors were required to file the petition, and that abstention was appropriate.

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Consumer opinion summary, case decided on September 03, 2009 , LexisNexis #0909-110