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Jerk Mach. Inc. v. Bank of Am. (In re Jerk Mach. Inc.)

Ruling
Debtor's counsel entitled to fees for representation in avoidance proceeding.
Procedural posture

Plaintiff bankruptcy debtor brought an adversary proceeding against defendant transferee of property from the debtor seeking a determination that the transfer was avoidable as fraudulent. The debtor prevailed in the action, the debtor's counsel applied for an award of attorney fees, and the creditor objected to the fee application.

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Commercial opinion summary, case decided on January 04, 2010 , LexisNexis #0210-002

Official Committee of Unsecured Creditors v. Citicorp N. Am. Inc. (In re Tousa Inc.)

Ruling
Liens given by debtor's subsidiary to secure credit line six months prior to petition date was avoidable.
Procedural posture

Plaintiff Official Committee of Unsecured Creditors filed an adversary proceeding against defendants, a chapter 11 debtor, the debtor's subsidiaries, a bank, and others, seeking a determination, inter alia, that liens the subsidiaries gave the bank to secure a revolving line of credit were avoidable under 11 U.S.C.S. §§ 544(b) and 548, and state law, and that payments made to the debtor's creditors to settle a lawsuit were also avoidable.

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Commercial opinion summary, case decided on October 13, 2009 , LexisNexis #1109-084

In re Holmes

Ruling
Gratuities were exempt "earnings" under state law.
Procedural posture

Debtor filed a petition under chapter 7 of the Bankruptcy Code, and a trustee was appointed to administer the debtor's bankruptcy estate. The trustee filed an objection to the debtor's claim that "gratuities" the debtor received from his employer were exempt from creditors' claims under Fla. Stat. § 222.11.

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Consumer opinion summary, case decided on September 30, 2009 , LexisNexis #1109-046

In re Creative Desperation Inc.

Ruling
Debtor's attorney sanctioned for failure to disclose relationship with party holding adverse interest to debtor.
Procedural posture

A debtor filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code. The court approved an attorney's retention as counsel for the debtor on a limited basis. The case was converted to a proceeding under chapter 7 of the Bankruptcy Code. A trustee filed a motion for sanctions and contempt against the attorney. The attorney filed a final fee application seeking approval for compensation as counsel for the debtor.

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Commercial opinion summary, case decided on September 14, 2009 , LexisNexis #1209-073

In re Creative Desperation Inc.

Ruling
Debtor's counsel denied fees and sanctioned for misrepresentations and other misconduct in debtor's case.
Procedural posture

A bankruptcy trustee asserted that counsel for a bankruptcy debtor had conflicts of interests, made misrepresentations, and engaged in other misconduct during counsel's representation of the debtor. The trustee moved for sanctions against counsel, and counsel submitted a final fee application.

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Commercial opinion summary, case decided on September 11, 2009 , LexisNexis #1009-060

Kapila v. H.J. Heinz Co. (In re Trafford Distrib. Ctr.)

Ruling
Creditor could setoff damages arising from the removal of property from the debtor's warehouse against funds owed to debtor under contract.
Procedural posture

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant creditor, seeking declaratory relief and turnover pursuant to 11 U.S.C.S. § 542, on claims for breach of contract, quantum meruit, and promissory estoppel. The creditor moved for partial summary judgment, asserting it was entitled to setoff against funds it owed to the debtor against damages arising from the removal of its property from the debtor's facility.

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Commercial opinion summary, case decided on September 01, 2009 , LexisNexis #0909-123

Kapila v. Clark (In re Trafford Distrib. Ctr. Inc.)

Ruling
Improperly perfected lien could be avoided and preserved for benefit of the estate.
Procedural posture

In this adversary proceeding, plaintiff chapter 7 trustee sought a determination on his motion for partial summary judgment that his rights in collateral were superior to those of defendant lienholders. The trustee also sought injunctive relief, attorneys' fees and costs, as well as additional sanctions. Defendants sought attorneys' fees and costs.

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Commercial opinion summary, case decided on August 31, 2009 , LexisNexis #0909-125

Kozich v. Cavallaro (In re Kozich)

Ruling
Debtor sanctioned for use of adversary proceeding to continue vexatious litigation.
Procedural posture

Plaintiff debtor filed an action against defendants, three individuals and three corporations, alleging a violation of the automatic stay. Defendants filed a motion to dismiss and a motion for sanctions, pursuant to Fed. R. Bankr. P. 9011.

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Consumer opinion summary, case decided on July 01, 2009 , LexisNexis #0809-071

Kapila v. Dailey (In re Dailey)

Ruling
Discharge denied due to debtor's nondisclosure of numerous assets.
Procedural posture

Plaintiff brought a complaint objecting to the granting of a discharge of his debts to defendant debtor, on multiple grounds, pursuant to 11 U.S.C.S. § 727(a). The debtor concealed and failed to schedule several assets, including a brokerage account, a bank account, a tax refund, and a mortgage on estate property from which he drew funds postpetition.

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Consumer opinion summary, case decided on May 11, 2009 , LexisNexis #0709-103

In re Mausolf

Ruling
Late filed reaffirmation agreement approved as in best interests of debtor.
Procedural posture

The chapter 7 debtor moved for approval of a reaffirmation agreement that would have enabled him to continue servicing the debt on his automobile.

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Consumer opinion summary, case decided on April 15, 2009 , LexisNexis #0609-120