Southern District

Clyde Bergeman Inc. v. Sullivan (In re Sullivan)

Creditor and debtor, plaintiff's ex-employee, sought summary judgment on claims that a federal district court judgment confirming an arbitration award against debtor was nondischargeable per 11 U.S.C.S. § 523(a)(4) and (a)(6). The judgment had awarded damages to plaintiff on findings that debtor and others had misappropriated plaintiff's trade secrets in violation of the Oregon Trade Secrets Act (OTSA), Or. Rev. Stat. § 646.461 et seq.
Ruling: 
Collateral estoppel operated to render state court embezzlement judgment nondischargeable.
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Consumer case opionion summary, case decided on May 20,2011, LexisNexis #0811-015

Glenn v. Ocwen Loan Servicing LLC (In re Glenn)

Debtors brought a postdischarge complaint seeking damages against defendant creditor, the mortgagee on the debtors' residential loan, asserting the creditor failed to remove certain disallowed charges from their account for 4 years in violation of court orders, including the discharge injunction of 11 U.S.C.S. § 524(a), which failed to comply with Fed. R. Bankr. P. 2016, and which was punishable as contempt under 11 U.S.C.S. § 105.
Ruling: 
Bank's failure to remove disallowed charges from debtors' account for four years did not violate discharge injunction absent attempt to collect.
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Consumer case opionion summary, case decided on May 28,2010, LexisNexis #0910-034

In re Bender Shipbuilder & Repair Co.

This matter was before the court on the motion of the debtor for entry of an order approving proposed bidding procedures for submission and acceptance of competing bids for the sale and, as applicable, the assumption and assignment, of certain assets of the debtor and, under certain circumstances, payment of a break-up fee in the amount of $ 800,000.
Ruling: 
Debtor's proposed bidding procedures for sale of assets approved.
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Commercial case opionion summary, case decided on December 30,2009, LexisNexis #0310-008

Gulfmark Offshore Inc. v. Bender Shipbuilding & Repair Co.

Plaintiff offshore company sued defendants, a shipbuilding company and its officers and directors, alleging breach of a contract to build vessels and related claims, including unjust enrichment and breach of fiduciary duty. The claims were stayed after commencement of a bankruptcy action for the shipbuilder. Pursuant to 28 U.S.C.S. § 157(a), the offshore company moved to refer the suit to the bankruptcy court. Defendants contested the motion.
Ruling: 
Action for breach of shipbuilding contract referred to bankruptcy court where debtor builder's involuntary case was pending.
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Commercial case opionion summary, case decided on November 09,2009, LexisNexis #1209-025

Gulfmark Offshore Inc. v. Bender Shipbuilding & Repair Co.

Plaintiff sued defendants, a shipbuilding company and the shipbuilding company's officers and directors, alleging breach of contract and breach of fiduciary duty. The court stayed the action against the shipbuilding company, pursuant to 11 U.S.C.S. § 362, after it learned that the company was in bankruptcy, and plaintiff sought a ruling on whether the stay applied to its claims against the company's officers and directors.
Ruling: 
Claims against debtor shipbuilder's officers and directors were subject to automatic stay.
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Commercial case opionion summary, case decided on August 03,2009, LexisNexis #0909-040

Alabama v. Lett (In re Lett)

Creditor appealed an order of the bankruptcy court, which denied its motion to alter or amend the judgment dismissing, as untimely under Fed. R. Bankr. P. 4007(c), its adversary complaint against debtor.
Ruling: 
Dischargeability proceeding properly dismissed as filed more than 60 days after creditors' meeting.
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Consumer case opionion summary, case decided on March 23,2009, LexisNexis #0509-069

Littleton v. Hinton (In re Triple H Auto & Truck Sales Inc.)

Chapter 7 trustee, brought a claim seeking the avoidance, under 11 U.S.C.S. § 547, of transfers of funds by the debtor to the aunt of the debtor's principals, and a credit provider and transferee of funds from the debtor. The transferee moved for summary judgment, asserting that the transfers were made in exchange for contemporaneous new value, or were made in the ordinary course of business.
Ruling: 
Transfer from debtor auto dealer repaying advances with interest were contemporaneous exchanges for new value and not avoidable.
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Commercial case opionion summary, case decided on February 02,2009, LexisNexis #0409-121

In re Broadus

The IRS filed a motion to reconsider a chapter 13 debtor's discharge, requesting that its secured claim and lien survive the discharge order and that it be granted relief from the discharge order due to the debtor's failure to pay the interest due on the tax claim.
Ruling: 
Interest rate and amount did not have to be included in proof of claim for debtor to be liable.
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Consumer case opionion summary, case decided on January 07,2009, LexisNexis #0209-097

In re Borders

A debtor filed for relief under chapter 7 of the Bankruptcy Code, and the matter was converted to a chapter 13 proceeding. The debtor submitted a proposed plan for confirmation. The trustee objected to the plan, pursuant to 11 U.S.C.S. § 1325(b)(4)(A), based on the proposed commitment period.
Ruling: 
Below median debtor properly calculated income and could propose plan with three-year commitment period.
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Consumer case opionion summary, case decided on April 30,2008, LexisNexis #0808-085

In re Arnold

Chapter 13 trustee objected to the debtors'three-year, zero percent plan.
Ruling: 
Form 22C, allowing deduction of business expenses in determining "cuurent income" is erroneous.
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Commercial case opionion summary, case decided on July 03,2007, LexisNexis #1107-092

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