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§ 510

Dorula v. Holmes (In re Starlight Grp. LLC)

Ruling
Claims filed by creditors who loaned money to the debtor LLC and were told that they had a security interest had priority over claims that were filed by an individual who controlled the LLC.
Issue(s)
Whether the claims of creditors who loaned money to the debtor in reliance on security agreements that were ineffective to grant liens on real property have priority over the unsecured claims of a creditor who was not an owner of the debtor but who controlled the debtor and knew that the security agreements were ineffective to grant liens on the debtor's real property?

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Consumer opinion summary, case decided on June 12, 2015 , LexisNexis #0715-012

Templeton v. OCheskey (In re Am. Hous. Found.)

Ruling
Investor's claims properly subordinated because the claims were for damages arising from the purchase or sale of a security of an affiliate of the debtor.
Issue(s)
Were creditor's claims based on investment in debtor's low-income housing projects properly subordinated as arising from the purchase or sale of a security?

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on April 28, 2015 , LexisNexis #0515-082

Pensco Trust Co. v. Tristar Esperanza Props. LLC (In re Tristar Esperanza Props. LLC)

Ruling
Claim for arbitration award arising from the purchase or sale of securities properly subordinated.
Issue(s)
Was claim based on a minority membership interest in debtor LLC properly subjected to mandatory subordination?

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on April 02, 2015 , LexisNexis #0415-110

Stambaugh v. PNC Bank N.A. (In re Stambaugh)

Ruling
Equitable subordination of mortgage debt was not available to creditor based on terms of subordination agreement.
Issue(s)
Was mortgagee entitled to equitable subordination of its junior loan based on debtor's alleged taking advantage of an error in issuing the loan as well as the terms of a subordination agreement?

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Consumer opinion summary, case decided on March 03, 2015 , LexisNexis #0315-113

Dayton Title Agency Inc. v. PNC Bank

Ruling
Creditor family company that had been ordered to turnover funds from fraudulent transfer lacked standing to seek subordination of bank's unsecured claim to all other unsecured claims.
Issue(s)
Was creditor with an allowed claim in a chapter 7 case entitled to an order to equitably subordinate the claim of another creditor to all other non-priority unsecured creditors?

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Commercial opinion summary, case decided on February 05, 2015 , LexisNexis #0415-011

In re Energy Conversion Devices Inc.

Ruling
Investor's claim for breach of fiduciary duty allowed but subordinated to claims of non-equity holders.
Issue(s)
Was creditor's claim one for damages arising from the purchase or sale of a security, which would be required to be subordinated to claims of non-equity holders?

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Commercial opinion summary, case decided on January 30, 2015 , LexisNexis #0215-120

In re McDaniel

Ruling
Equitable subordination of lender's interest in property after foreclosure by lender's affiliate was not appropriate.
Issue(s)
Should lender's interest in debtor's property be equitably subordinated following foreclosure by lender's affiliate?

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Consumer opinion summary, case decided on December 19, 2014 , LexisNexis #0115-046

SAM REI LLC v. Contl Group LLC (In re Strata Title LLC)

Ruling
Court-appointed special counsel had quasi-judicial immunity on claims for breaches of fiduciary duty to the estate and duty of candor to the court.
Issue(s)
Was court-appointed special counsel entitled to quasi-judicial immunity on claims of breach of fiduciary duty and duty of candor to court?

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Commercial opinion summary, case decided on November 25, 2014 , LexisNexis #1214-115

Garner v. Knoll Inc. (In re Tusa-Expo Holdings Inc.)

Ruling
Trustee could pursue bankruptcy causes of action in bankruptcy court arising out of same facts and occurrences as actions previously filed by debtor's principal in state court.
Issue(s)
Did rule against claim splitting bar trustee from asserting cause of action based on same facts alleged by debtor's principal in state court action?

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Commercial opinion summary, case decided on October 08, 2014 , LexisNexis #1114-012

In re MPM Silicones LLC

Ruling
Claims of senior note-holders properly subordinated to claims of second lien holders.
Issue(s)
What was proper treatment of claims of senior note holders and second lien holders in debtor's plan?

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Commercial opinion summary, case decided on September 09, 2014 , LexisNexis #1014-011