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northern district of alabama

In re Turner

Ruling
Personal injury attorney whose employment by debtor had been approved was allowed contingency fee plus interest.
Procedural posture

The group counsel filed a motion to determine the ownership of a debtor's personal injury claim, to accept an offer in settlement of the claim, and for approval of counsel's attorney's fees and expenses.

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opinion summary, case decided on January 11, 2007 , LexisNexis #0307-086

Money One Fed. Credit Union v. Manegan (In re Menegan)

Ruling
Creditor could not except debt from discharge on grounds of misrepresentation while claiming evidence of reliance was covered by attorney-client privalege.
Procedural posture

Chapter 7 debtor filed a motion for summary judgment in creditor's action, which sought to except credit card debt owed it by debtor from discharge pursuant to 11 U.S.C. § 523(a)(2).

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opinion summary, case decided on November 24, 2006 , LexisNexis #0107-049

Hosey v. Hosey (In re Hosey)

Ruling
Debt owed pursuant to alleged joint venture was dischargeable absent evidence of intent to defraud.
Procedural posture

Plaintiff, a judgment creditor of defendant debtor, brought an adversary complaint to determine the dischargeability of the judgment that had been obtained in state court, pursuant to 11 U.S.C. § 523(a)(2) and (a)(4).

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opinion summary, case decided on November 14, 2006 , LexisNexis #0107-125

In re Plascencia

Ruling
Chapter 13 plan could not be confirmed where unsecured creditors would receive more in chapter 7 regardless of valuation of home purchased from Habitiat for Humanity.
Procedural posture

The chapter 13 trustee filed objections to debtor's confirmation, arguing that her residential property purchased from a branch of Habitat for Humanity should be valued at its fair market value and not the substantially lower value at which Habitat could repurchase it, and that the proposed plan does not pay creditors at least as much as they would receive in a chapter 7 liquidation, as required under 11 U.S.C. § 1325.

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opinion summary, case decided on November 08, 2006 , LexisNexis #1206-078

Potter v. City of Hanceville (In re Potter)

Ruling
Police chief debtor could pursue claim for damages and attorneys fees based on bankruptcy discrimination by municipality.
Procedural posture

Defendants, a city and city officials, filed motions for summary judgment in chapter 7 debtor's action, which alleged that defendants denied him continued employment based only on the fact that he had filed bankruptcy, in violation of 11 U.S.C. § 525(a), that the violation entitled him to damages pursuant to the discrimination cause of action created by 42 U.S.C. § 1983, and to attorneys fees under 42 U.S.C. § 1988.

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opinion summary, case decided on November 06, 2006 , LexisNexis #0307-099

Soheily v. Vuong (In re Vuong)

Ruling
Mere promise of future performance did not render debt nondischargeable on grounds of fraud absent requisite intention to deceive when promise was made.
Procedural posture

Plaintiff creditor filed an adversary proceeding against defendant debtor seeking a determination that his debt was nondischargeable pursuant to 11 U.S.C. § 523(a)(2) for false pretenses, false representations, or actual fraud.

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opinion summary, case decided on November 01, 2006 , LexisNexis #1206-124

In re American Canadian Investments Inc.

Ruling
Credit bid could not be included in calculation of trustee's compensation.
Procedural posture

A chapter 7 trustee requested approval of $64,878 as compensation. The U.S. Trustee objected to the application, arguing that the trustee was only entitled to $12,631 because a credit bid could not be included in the calculation of the trustee's compensation under 11 U.S.C. § 326(a).

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opinion summary, case decided on November 01, 2006 , LexisNexis #0307-020

In re Smith

Ruling
Objection to trustee's motion to sell assets overruled where objector's alleged prior agreement with trustee could not have been entered into absent court approval.
Procedural posture

The chapter 7 trustee filed a motion for authority to sell assets free and clear of liens by sealed bid. Prior to filing the instant motion for authority to sell, the trustee filed a previous motion and a potential buyer submitted an offer. The potential buyer objected to the instant motion alleging that he and the trustee had an agreement to sell the property with the only contingency being court approval of the sale.

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opinion summary, case decided on October 06, 2006 , LexisNexis #1106-116

Superior Bank v. Hilsman (In re Hilsman)

Ruling
Breach of contract action involving state law which could be timely adjudicated by parties remanded.
Procedural posture

Bankruptcy trustee filed a motion for remand pursuant to 28 U.S.C. § 1452(b), in the alternative, a motion to abstain and remand to state court creditor bank's action against debtor and debtor's counterclaim regarding a breach of contract on loans. The bank opposed the motions.

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opinion summary, case decided on October 02, 2006 , LexisNexis #1106-140

In re Hackney

Ruling
Fees and expenses incurred by bank in prepetition fraudulent conveyance action against debtor were not entitled to prioriy administrative status.
Procedural posture

Under 11 U.S.C. § 507, a creditor bank sought an allowance of administrative expenses representing professional fees and litigation expenses it incurred in a prepetition state court fraudulent conveyance action against the debtor and numerous transferees of the debtor. After the debtor filed its chapter 7 petition, the trustee substituted as plaintiff and settled the lawsuit.

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opinion summary, case decided on September 28, 2006 , LexisNexis #1106-118