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southern district of florida

Mukamal v. Enriquez (In re Rx Cardiovascular Specialties Inc.)

Ruling
Contemporaneous exchange for new value and ordinary course of business defenses to avoidance are not available with respect to postpetition transfers.
Procedural posture

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditor seeking to recover a payment and other transfers as preferences pursuant to 11 U.S.C. §§ 547 and 550. The trustees subsequently filed an amended complaint seeking avoidance and recovery of the payment as an unauthorized postpetition transfer pursuant to 11 U.S.C. § 549. The trustee filed a motion for partial summary judgment on the section 549 claim.

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opinion summary, case decided on September 15, 2006 , LexisNexis #0107-132

In re El Toro Exterminator of Fla. Inc.

Ruling
Creditor could review documents containing commercial information subject to nondisclosure order.
Procedural posture

After debtor company filed a chapter 11 bankruptcy and appeared for a Fed. R. Bankr. P. 2004 examination, debtor allowed counsel for two creditors, a former employee and his counsel, to look at the records but would not permit copying. The creditors sought orders compelling production thereof and sanctioning debtor for refusing to allow discovery thereon. At issue was the effect, if any, of 11 U.S.C. § 107(b) on the parties'rights.

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opinion summary, case decided on July 06, 2006 , LexisNexis #1106-001

In re Petit-Louis

Ruling
Court upheld waiver of credit counseling since debtor could not find credit counseling in debtor's native language.
Procedural posture

The debtor, who spoke limited English, could not obtain the requisite prefiling credit counseling in Creole, nor could he afford to hire an interpreter. The yrustee moved for reconsideration of the court's order granting the debtor a waiver of the credit counseling required by 11 U.S.C. § 109(h)(1). At the hearing on the matter, after resting, the trustee moved to introduce affidavits into evidence.

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opinion summary, case decided on June 23, 2006 , LexisNexis #0706-073

In re Martinez-Held

Ruling
Bankruptcy court refused to condition voluntary dismissal in case with few assets on payment of trustee's attorneys'fees.
Procedural posture

A trustee filed an ore tenus motion, pursuant to 11 U.S.C. § 707(a), to condition the voluntary dismissal of a debtor's chapter 7 bankruptcy petition on the payment of the trustee's attorneys'fees.

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opinion summary, case decided on June 16, 2006 , LexisNexis #1106-032

In re Chira

Ruling
Trustee's motion to assume executory contract for sale of hotel and to settle dispute with purchaser was granted since contract was in best interests of estate and unsecured creditors.
Procedural posture

Creditors filed an involuntary chapter 7 petition against debtor under 11 U.S.C. § 303. After her appointment, movant trustee sought to assume an executory contract for the sale of real property and to settle a dispute with respondent purchaser over the ownership of a hotel that he had purchased from a receiver appointed by a state divorce court.

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opinion summary, case decided on June 05, 2006 , LexisNexis #0806-020

In re Marineau

Ruling
Court deemed that creditor's refusal to release state garnishment lien took priority over trustee's avoidance powers and thus did not vioalte automatic stay.
Procedural posture

Movant debtors sought to release funds garnished by respondent creditor and turnover of the garnished funds. The creditor cross-moved for relief from the automatic stay under 11 U.S.C. § 362 so that it could complete its state court garnishment of the funds.

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opinion summary, case decided on May 18, 2006 , LexisNexis #0706-112

Osborne v. American Express Travel Related Services Co. (In re Global Vending Inc.)

Ruling
Motion to authorize trustee to file settlement agreement under seal was denied since motion did not satisfy exception to rule that documents be made available to public.
Procedural posture

Plaintiff trustee's complaint sought to recover allegedly avoidable transfers from defendant transferee which exceeded $900,000. The matter came on for hearing on the trustee's ex parte motion for order authorizing the trustee to file under seal a settlement agreement with the transferee, which was filed by the trustee at the same time as the trustee's motion to approve compromise of controversy with the transferee.

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opinion summary, case decided on May 17, 2006 , LexisNexis #0806-014

In re Satinoff

Ruling
Court dismissed case due to late delivery of tax return but reinstated the case since the late delivery did not prejudice the parties.
Procedural posture

A trustee and a debtor filed a joint motion to dismiss a chapter 7 case, pursuant to 11 U.S.C. § 521(e)(2), to reinstate the case under 11 U.S.C. § 350(b).

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opinion summary, case decided on May 04, 2006 , LexisNexis #0606-004

In re Suncruz Casinos LLC

Ruling
Insurer was held in civil contempt since insurer failed to file a preconfirmation administrative expense claim and pay indemnity claims in willful violation of the confirmation order.
Procedural posture

Confirmed chapter 11 cases came on for hearing on the joint motion of the postconfirmation plan administrator for the liquidating debtors, and their primary secured creditor, seeking an order under 11 U.S.C. §§ 105(a) and 1129 and Fed. R. Bankr. P. 9020 and 9014, holding debtors'maritime insurer in civil contempt and awarding sanctions for violation of the permanent injunction entered as part of the order confirming the chapter 11 Plan.

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opinion summary, case decided on May 01, 2006 , LexisNexis #0606-029

In re Mullennix

Ruling
Motion to compel turnover of insurance proceeds was denied since they were deemed not part of estate.
Procedural posture

Movant chapter 7 trustee sought to compel turnover of insurance proceeds related to an automobile from respondent debtor.

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opinion summary, case decided on April 27, 2006 , LexisNexis #0706-134