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northern district of alabama

Peoples Bank v. SAIIA Constr. LLC (In re B&M Props. LLC)

Ruling
Court reversed bankruptcy court since mandatory abstention was required concerning issue of perfection of mechanic's lien pending in state court.
Procedural posture

Appellant creditor sought judicial review of a final order entered by the bankruptcy court. The issue was whether abstention doctrines applied to an involuntary bankruptcy case making it an error of law for the bankruptcy court to adjudicate the case before an active state case was resolved.

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opinion summary, case decided on June 05, 2006 , LexisNexis #0606-139

Wilson v. Moir (In re Wilson)

Ruling
Debtor was denied summary judgment since section 544(a) barred debtor-in-possession from avoiding deed of trust binding on debtor.
Procedural posture

Plaintiff chapter 11 debtor sued defendant individuals, seeking to invoke her 11 U.S.C. § 544 strong-arm powers as a debtor in possession to set aside defendants'deed of trust on the grounds that it was not in the chain of title and would not have bound a bona fide purchaser for value. The debtor moved for summary judgment.

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opinion summary, case decided on May 26, 2006 , LexisNexis #0706-025

Tidewater Fin. Co. v. Williams

Ruling
Court rejected creditor's argument that six year limitations period between debtor's chapter 7 cases should have been equitably tolled while debtor's chapter 13 cases were pending.
Procedural posture

Appellant creditor sued appellee debtor claiming that the debtor was not entitled to discharge of a certain debt in her second chapter 7 case. The creditor claimed that the six year waiting period of 11 U.S.C. § 727(a)(8) should have been equitably tolled while the debtor's intervening chapter 13 cases were pending. The bankruptcy court granted summary judgment in favor of the debtor, and the creditor sought review.

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opinion summary, case decided on May 09, 2006 , LexisNexis #0606-027

Forklift Liquidating Trust v. Custom Tool & MFG. Co. (In re Forklift LP Corp.)

Ruling
Payments to manufacturer were deemed preferential transfers since the manufacturer failed to show the transfers were made in the ordinary course of business.
Procedural posture

Plaintiff, a chapter 11 bankruptcy debtor's successor in interest, filed an action against defendant, a manufacturer that supplied parts to the debtor, pursuant to 11 U.S.C. § 547 seeking to avoid alleged preferential transfers made to the manufacturer. The court conducted a bench trial and thereafter issued a memorandum containing its findings of fact and conclusions of law as required under Fed. R. Civ. P. 52.

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opinion summary, case decided on March 31, 2006 , LexisNexis #0406-097

In re U.S. Airways Inc.

Ruling
Proof of claim was disallowed in the debtor's second case since the claim was discharged in the debtor's first case.
Procedural posture

A chapter 11 matter was before the court on cross-motions for summary judgment by movant claimant and movant debtor with respect to a $17 million employment discrimination claim by the claimant, who was employed by debtor airline as a pilot from 1984 to 2001. The claimant also moved for sanctions.

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opinion summary, case decided on March 06, 2006 , LexisNexis #0406-049

In re Gordon

Ruling
Court reduced the fees charged by the debtor's attorney in the attorney's application for supplemental compensation and ordered further hearing as to whether the debtor authorized work on and the filing of a second amended plan.
Procedural posture

The debtor's attorney filed an application for allowance and payment of supplemental compensation.

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opinion summary, case decided on February 27, 2006 , LexisNexis #0406-044

In re Houston

Ruling
Court deemed that debtor had sufficiently complied with the requirement to provide a copy of the most recent income tax return since the computer-prepared summary of data electronically transmitted to the IRS constituted a copy.
Procedural posture

The bankruptcy court issued an amended notice to show cause in response to the chapter 7 trustee's certification under Interim Bankr. E.D. Va. R. 4002-1 that debtor failed to furnish him with a copy of her income tax return for the most recent tax year preceding the filing of the petition, as required by 11 U.S.C. § 521(e)(2)(A)(i). The trustee also requested copies of the debtor's statements for each of her depository and investment accounts.

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opinion summary, case decided on February 23, 2006 , LexisNexis #0406-040

French v. Peninsula Bank (In re French)

Ruling
Debtor was denied discharge for failure to maintain adequate records and for making false statements, and the bankruptcy court did not err in refusing to give credence to the debtor's claim of mental impairment.
Procedural posture

Appellant debtor appealed from an order of bankruptcy court, which granted appellee creditor's motion for summary judgment denying debtor a discharge in bankruptcy. The bankruptcy court held that summary judgment was proper under both 11 U.S.C. § 727(a)(3) (failure to maintain rec and ds).

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opinion summary, case decided on February 21, 2006 , LexisNexis #0306-061

In re Grossman

Ruling
Application for additional attorneys'fees was approved but at a reduced amount since the retainer agreement did not account for an increase in hourly billing rates.
Procedural posture

Debtors' counsel filed an application for approval and payment of supplemental compensation. The debtors objected to the additional fees.

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opinion summary, case decided on February 15, 2006 , LexisNexis #0406-043

In re Ashley

Ruling
Case was dismissed since the debtor did not meet the requirements for obtaining a 30-day extension of time to obtain credit counseling.
Procedural posture

Before the court in a chapter 7 matter was debtor's request for deferment of the credit counseling requirement under 11 U.S.C. § 109(h).

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opinion summary, case decided on February 08, 2006 , LexisNexis #0406-039