§ 362(b)

In re Thomas

Appellant, a chapter 13 debtor, sought review of an order from the bankruptcy court denying his motion for damages against appellees, a City's department of parking and traffic, the California Department of Motor Vehicles ("DMV"), and the California Franchise Tax Board ("FTB"), for alleged violations of the automatic stay under 11 U.S.C. § 362.
Ruling: 
Denial of parking permit and vehicle registration due to unpaid prepetition parking citations was within police powers exception to stay.
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In re Arsi

A bankruptcy debtor was disbarred from practicing law based on misconduct, and the debtor was ordered to pay restitution by the South Carolina Supreme Court (Court). The Court and its Office of Disciplinary Counsel ("ODC") moved for a determination that the exception to the automatic bankruptcy stay under 11 U.S.C. § 362(b)(4) was applicable.
Ruling: 
Disbarred attorney debtor's restitution obligation was excepted from discharge.
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Bevelle v. Jefferson County (In re Bevelle)

Plaintiff chapter 13 debtor filed an adversary proceeding against defendants, an Alabama city and county, seeking to enjoin the city from vacating an alleyway adjacent to his property and to enjoin the county from using its eminent domain powers to take his property. The debtor moved for issuance of a temporary restraining order ("TRO"). The city filed a motion to dismiss. The county filed motions to abstain and for relief from the automatic stay.
Ruling: 
State court condemnation action was an exercise of police or regulatory power and was not subject to stay.
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In re Brown

The bankruptcy court issued a show cause order why a foreclosure sale conducted by the substitute trustee under the deed of trust should not be found void as a violation of the automatic stay, where the sale was conducted with knowledge of the bankruptcy filing, after the petition date and before dismissal, where the debtor was subsequently found to be ineligible for bankruptcy relief pursuant to 11 U.S.C. § 109(h).
Ruling: 
Foreclosure sale was held void since it violated automatic stay in place before case was dismissed for debtor's failure to meet section 109(h) requirements.
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In re IT Group Inc. v. IT Litig. Trust

Appellant, the New Jersey Department of Environmental Protection ("NJDEP"), issued an administrative order against a bankruptcy debtor. Appellee, the successor to the debtor's estate, filed motions in the bankruptcy court after the NJDEP sought a summary decision in the contested proceeding that the debtor filed. The bankruptcy court granted the successor's motions and ordered the NJDEP to dismiss the administrative action. The NJDEP appealed.
Ruling: 
State agency was not entitled to an automatic stay exception for its administrative proceedings against the debtor since the state agency's claim was an unsecured claim under the debtor's confirmed chapter 11 plan.
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In re Southcoast Express Inc.

A lessor of a commercial property contended that it terminated a bankruptcy debtor's lease of the property before the debtor filed its bankruptcy petition, and thus the automatic bankruptcy stay did not bar the lessor's eviction action under 11 U.S.C. § 362(b)(10). The lessor moved for an order determining that the bankruptcy stay did not apply or granting relief from the stay.
Ruling: 
Court ruled that the automatic stay did not apply to a lease terminated prepetition by the expiration of the lease term, but an evidentiary hearing was needed to determine if the lease was properly terminated.
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Mass. Bd. of Registration in Pharm. v. Drug Assist Health Solutions Inc.

Defendant Massachusetts Board of Registration in Pharmacy appealed a decision of the bankruptcy court, which granted preliminary injunctive relief to debtor, enjoining the Board from taking any action to revoke debtor's pharmacy license.
Ruling: 
Preliminary injunction decision enjoining a licensing board from revoking the debtor's pharmacy license was reversed since revocation was an act of governmental regulatory power intended to enjoin conduct threatening the public welfare.
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