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§ 362(b)

In re Arsi

Nov
01
2006
Ruling
Disbarred attorney debtor's restitution obligation was excepted from discharge.
Procedural posture

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.

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opinion summary, case decided on November 01, 2006 , LexisNexis #1206-072
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Bevelle v. Jefferson County (In re Bevelle)

Aug
25
2006
Ruling
State court condemnation action was an exercise of police or regulatory power and was not subject to stay.
Procedural posture

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.

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opinion summary, case decided on August 25, 2006 , LexisNexis #1006-086
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In re Brown

May
08
2006
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.
Procedural posture

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).

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opinion summary, case decided on May 08, 2006 , LexisNexis #0606-107
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In re IT Group Inc. v. IT Litig. Trust

Mar
17
2006
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.
Procedural posture

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.

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opinion summary, case decided on March 17, 2006 , LexisNexis #0406-011
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In re Southcoast Express Inc.

Feb
13
2006
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.
Procedural posture

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.

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opinion summary, case decided on February 13, 2006 , LexisNexis #0306-044
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Mass. Bd. of Registration in Pharm. v. Drug Assist Health Solutions Inc.

Jan
31
2006
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.
Procedural posture

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.

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opinion summary, case decided on January 31, 2006 , LexisNexis #0206-067
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