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§ 362(a)

In re Rodriguez

Ruling
Mortgagee's increase in postpetition payments due to tax and insurance escrow shortage did not violate stay but was improperly calculated.
Procedural posture

Chapter 13 debtors filed a motion asserting that post-petition collection by a mortgagee of a pre-petition escrow shortage constituted a violation of the automatic stay provisions set forth in 11 U.S.C.S. § 362(a).

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Consumer opinion summary, case decided on July 22, 2008 , LexisNexis #1008-110

In re Loseke

Ruling
Threatening calls by debt collection agent was a willful violation of stay.
Procedural posture

Debtors asserted that a pre-petition creditor, acting through a debt collection agency, violated the automatic stay by making a threatening telephone call during which the caller verbally abused the debtors and coerced a payment of $ 300 by threatening criminal sanctions.

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Consumer opinion summary, case decided on July 17, 2008 , LexisNexis #0908-074

Harchar v. United States (In re Harchar)

Ruling
IRS administrative freeze on debtors' account did not violate stay.
Procedural posture

Defendant IRS and plaintiff debtors, a married couple, cross-moved for summary judgment on claims that IRS implementation of an administrative freeze on debtors' account, which purportedly delayed the payment of their 1999 tax refund, violated the automatic stay in 11 U.S.C.S. § 362(a)(3) and § 362(a)(6). Other claims arising from the same conduct for other years were reserved for separate consideration.

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Consumer opinion summary, case decided on July 14, 2008 , LexisNexis #0808-108

Stoiber v. Galpern (In re Stoiber)

Ruling
Claim for violation of Fair Debt Collection Practices Act based solely on stay violation was superseded by the bankruptcy code and dismissed for lack of evidence.
Procedural posture

Plaintiff debtor reopened his bankruptcy case and filed an adversary proceeding seeking civil sanctions against defendant, his former wife's attorney for violation of the automatic stay and for damages under the Fair Debt Collection Practices Act (FDCPA). The attorney argued that the debtor had failed to give him notice of the bankruptcy filing, that when he received notice her ceased collection efforts, and filed a motion for summary judgment.

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Consumer opinion summary, case decided on June 18, 2008 , LexisNexis #0908-040

Saylor v. Select Portfolio Servicing Inc. (In re Saylor)

Ruling
Mortgage servicer's transmittal of transaction history and payoff letter in response to debtor's request did not violate stay.
Procedural posture

The debtor sought review of a decision of the bankruptcy court, which granted a motion to dismiss the debtor's action against appellee, a mortgage servicing company.

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Consumer opinion summary, case decided on June 09, 2008 , LexisNexis #0708-059

Cincinnati Ins. Co. v. American Glass Indus. Inc.

Ruling
Granting of motion to stay brought by debtor's co-defendants in industry action vacated.
Procedural posture

Plaintiff, an insurance company, filed a motion to vacate a prior court order that had granted a motion to stay the action pending the disposition of a bankruptcy proceeding of the debtor defendant, that had been brought by the codefendants, joint and several obligors of the debtor and the owners of 92 percent of the debtor.

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Commercial opinion summary, case decided on May 16, 2008 , LexisNexis #0608-037

Hoang v. Urban Purchasing LLC

Ruling
Motion to stay Fair Labor Standards Act case against debtor's co-defendant denied absent direct connection or identity of interest.
Procedural posture

Plaintiff former employees brought an action against defendants, two employer companies and their principals, alleging that defendants failed to pay overtime wages required by the Fair Labor Standards Act by improperly classifying the employees as independent contractors. One company filed a bankruptcy petition, and the remaining co-defendants moved to stay all proceedings pursuant to the automatic bankruptcy stay of 11 U.S.C.S. § 362(a)(1).

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Commercial opinion summary, case decided on May 08, 2008 , LexisNexis #0608-073

Cash-On-Demand LLC v. Muir House Inc. (In re Muir House Inc.)

Ruling
Bankruptcy court declined to grant relief from stay or use of cash collateral.
Procedural posture

Creditor filed two motions seeking, in one instance, the lifting of the automatic stay imposed by 11 U.S.C.S. § 362(a) and in the other, a motion to prohibit the use of cash collateral.

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Commercial opinion summary, case decided on April 18, 2008 , LexisNexis #1008-073

Alcantara v. Citimortgage Inc. (In re Alcantara)

Ruling
Class action complaint for violations of stay dismissed due to debtor's failure to allege creditor's actions resulted in injury.
Procedural posture

Plaintiff debtors filed an action against defendant creditor alleging violations of the Florida Consumer Collection Practices Act. In an amended complaint, the debtors filed a class action individually and on behalf of others similarly situated, alleging three counts of violations of the automatic stay imposed under 11 U.S.C.S. § 362(a)(6). The creditor filed a motion to dismiss.

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Consumer opinion summary, case decided on April 09, 2008 , LexisNexis #0708-003

In re Chestnut Hill Rehab Hosp. LLC

Ruling
Arbitration proceedings pursuant to collective bargaining agreement were not subject to stay.
Procedural posture

The debtors filed two separate motions for an order to show cause against a union and the American Arbitration Association (AAA). The debtors contented that the union and the AAA had violated the automatic stay imposed by 11 U.S.C.S. § 362 by pursuing certain arbitration proceedings after the bankruptcy petitions were filed.

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Commercial opinion summary, case decided on March 25, 2008 , LexisNexis #0508-076