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§ 541(c)(1)

Daileader v. Certain Underwriters at Lloyds London Syndicate 1861

Ruling
District court did not abuse its discretion by denying appellant's motion for preliminaryinjunction to force appellee insurers to pay for his defense costs due to application ofbankruptcy/insolvency exclusion. (2d Cir.)
Issue(s)
Property of the Estate; Restrictions Voided; Effect of Composition on Agreements.

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Judge or Jurisdiction information not available
Consumer opinion summary, case decided on March 18, 2024 , LexisNexis #0624-011

Canuso, In re

Ruling
Transfer of shares from the estate upon bankruptcy filing pursuant to an assignmentagreement provision could be avoided. (Bankr. D.N.J.)
Issue(s)
Property of the Estate; Restrictions Voided; Effect of Composition on Agreements;

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:
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on May 26, 2021 , LexisNexis #0721-039

In re Pipkins

Ruling
Structured settlement payments from an annuity were property of the bankruptcy estate.
Issue(s)
Could trustee sell interest in future structured settlement payments from an annuity as property of debtor's estate?

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Consumer opinion summary, case decided on June 17, 2014 , LexisNexis #0714-093

Waldron v. Huber (In re Huber)

Ruling
Debtor's ownership interest in entity that was controlling member of LLC was property of the estate.
Issue(s)
Whether a chapter 7 trustee who succeeded to the membership rights of an entity that was owned 100 percent by the debtor, also succeeded to the non-economic membership rights of a subsidiary multi- member L.L.C., when the other L.L.C. member did not consent to the trustee's management interest?

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Consumer opinion summary, case decided on November 25, 2013 , LexisNexis #1213-086

In re Willcut

Ruling
Debtor spouse ordered to account for postpetition receipts from LLC in which the spouse owned an interest.
Procedural posture

A chapter 7 trustee filed a motion for turnover and accounting, seeking an accounting for, and return of, all monies received by a debtor wife from a limited liability company (LLC) in which she owned an interest.

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Consumer opinion summary, case decided on July 02, 2012 , LexisNexis #0912-088

In re Ellis

Ruling
Non-economic interests in LLC were property of the estate notwithstanding state law.
Procedural posture

After a Chapter 7 debtor sought exemption of his membership interest in a limited liability company (LLC), a creditor objected, arguing that the debtor failed to list the value of that interest. The debtor amended his schedules to reflect the value of his interest in the LLC as zero.

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Consumer opinion summary, case decided on October 27, 2011 , LexisNexis #1111-123

LaMonica v. North of England Protecting and Indemnity Assoc. (In re Probulk Inc.)

Ruling
Insurer's termination of debtor's policies pursuant to "cesser clause" was ineffective.
Procedural posture

Chapter 7 trustee brought an action against insurers. He filed an emergency motion seeking a temporary restraining order to prevent insurers who had provided coverage for debtors' vessels from canceling outstanding insurance or, to the extent necessary, to require them to restore coverage. The trustee was granted relief. The trustee thereafter filed an adversary proceeding. The trustee sought a preliminary injunction.

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Commercial opinion summary, case decided on July 07, 2009 , LexisNexis #0809-047

Texas AG v. Brown (In re Fort Worth Osteopathic Hosp. Inc.)

Ruling
Ipso facto clause in debtor's D&O policy precluded any recovery by trustee on behalf of creditors.
Procedural posture

The plaintiff in the first action, the Attorney General of Texas, who sought to recover proceeds from policies insuring defendant directors and officers of debtor hospital, moved for partial summary on the issue that the application of 11 U.S.C.S. § 541(c)(1) did not invalidate an ipso facto endorsement in the insurance policies. Defendant trustee sought recovery under the policies for the benefit of the creditors.

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Commercial opinion summary, case decided on April 30, 2008 , LexisNexis #0608-030

West v. TD BankNorth (In re Kerr)

Ruling
Debtors interests in valid and enforceable spendthrift trusts were not property of the estate.
Procedural posture

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant bank, which was the trustee of trusts of which a bankruptcy debtor was a beneficiary, and the trustee asserted that the debtor's interests in the trusts were property of the debtor's bankruptcy estate. The trustee and the bank submitted the matter for decision on stipulated facts.

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Consumer opinion summary, case decided on April 22, 2008 , LexisNexis #0508-102

Klingerman v. ExecuCorp LLC (In re Klingerman)

Ruling
Debtor's interest in LLC became property of the estate on petition date so that the estate had standing to request dissolution.
Procedural posture

Plaintiff debtor, who was a founding member of defendant limited liability corporation (LLC), commenced an adversary proceeding to judicially dissolve and wind up the LLC. Defendant, another member (member), asserted that the debtor ceased to be a member of the LLC when he filed a bankruptcy petition and thus lacked standing to seek dissolution.

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Consumer opinion summary, case decided on April 10, 2008 , LexisNexis #0508-118