Judge Murphy

Ragsdale v. Morgan (In re Morgan)

Chapter 7 trustee brought an dischargeability proceeding against debtor. Pending was debtor's motion to set aside entry of default judgment.
Ruling: 
Debtor's default in adversary proceeding could not be set aside absent showing of excusable neglect.
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Consumer case opionion summary, case decided on May 29,2009, LexisNexis #0809-062

Miller v. Adell (In re John Richards Homes Bldg. Co. LLC)

Appellant law firm sought attorney fees and costs incurred after appellee's involuntary bankruptcy petition against appellant debtor was dismissed. The law firm and debtor appealed the Bankruptcy Court for the Eastern District of Michigan's order that denied the application for lack of authority. A magistrate recommended that the order be reversed and that appellee's motion for partial dismissal be denied. Appellee timely objected.
Ruling: 
Bankruptcy court erred in denying award of debtor's attorneys' fees following dismissal of involuntary cases.
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Commercial case opionion summary, case decided on March 30,2009, LexisNexis #0509-025

Cavalli v. Cavalli (In re Cavalli)

Debtor's former spouse, filed an adversary proceeding seeking a determination that the debts owed by debtor were nondischargeable pursuant to 11 U.S.C.S. § 523(a)(5) or (a)(15). The former spouse moved for summary judgment.
Ruling: 
Debtor's obligation to former spouse to refinance marital residence and pay other debts was nondischargeable.
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Consumer case opionion summary, case decided on March 19,2009, LexisNexis #0609-055

Dynaspan v. Evilsizer (In re Evilsizer)

Creditor filed an adversary proceeding against debtor seeking a determination that its debt was nondischargeable pursuant to 11 U.S.C.S. § 523(a)(2)(A), (4) or (6). The creditor moved for partial summary judgment contending that the factual findings of a state court precluded relitigation of those facts in the instant case.
Ruling: 
State court's factual findings of fraudulent misrepresentation were sufficient to support nondischargeability.
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Consumer case opionion summary, case decided on March 18,2009, LexisNexis #0609-082

In re Dean

Debtors filed a petition under chapter 13 of the Bankruptcy Code and a plan for repaying their creditors. A trustee was appointed to represent the bankruptcy estate, and the trustee and an unsecured creditor filed objections to confirmation of the debtors' plan.
Ruling: 
Chapter 13 plan confirmation denied subject to debtors filing amended Form 22C within 20 days.
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Consumer case opionion summary, case decided on November 30,2008, LexisNexis #0409-004

JCB Inc. v. Union Planters Bank

Appellee manufacturer sued appellant bank in the District Court for the Eastern District of Missouri for trespass and conversion. The district court referred certain issues to a bankruptcy court, which granted partial summary judgment for the manufacturer. A jury then reached a verdict in favor of the manufacturer for compensatory and punitive damages. The bank appealed.
Ruling: 
Bank's seizure and sale of estate property in which manufacturer has a senior purchase money security interest was done with willful and reckless disregard for confirmation order.
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Commercial case opionion summary, case decided on August 26,2008, LexisNexis #0908-104

In re Gresham

A debtor filed for relief under chapter 13 of the Bankruptcy Code. The debtor filed a motion for an order of stay as to state court action taken by her former spouse and approval of the debtor's amendment to add a second individual as an unsecured creditor.
Ruling: 
State court sanctions for breach of divorce settlement obtained by debtor's spouse violated stay.
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Consumer case opionion summary, case decided on August 12,2008, LexisNexis #1108-040

In re Allen

The chapter 7 case was before the court on the trustee's motion to approve the conditional abandonment of a tort claim to debtor.
Ruling: 
Trustee's motion to abandon debtor's legal malpractice cause of action denied due to potential value to estate.
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Consumer case opionion summary, case decided on February 14,2008, LexisNexis #0308-102

In re Patterson

After an attorney for a chapter 11 debtor withdrew and the case was converted to a chapter 7 case, the attorney filed an application for compensation, seeking permission to apply a prepetition retainer paid to her in partial satisfaction of her fees, with the balance due to be paid by the debtor if not paid pursuant to 11 U.S.C.S. § 726(b) at the close of the case. Both the chapter 7 trustee and the U.S. Trustee objected.
Ruling: 
Debtor's attorney's prepetition retainer was subject to disgorgement.
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Consumer case opionion summary, case decided on January 15,2008, LexisNexis #0508-017

In re Dye

Creditors filed motions to dismiss on the grounds that, under 11 U.S.C.S. § 109(h), the debtor was ineligible to be a debtor because he failed to obtain the required prepetition credit briefing certificate. The creditors also asserted that the debtor failed to fully comply with 11 U.S.C.S. § 521. One of the creditors offered to pay the chapter 7 Trustee $ 85,000 to dismiss the case.
Ruling: 
Failure to comply with credit counseling requirement not grounds for dismissal where debtor was excused by exigent circumstances of imminent home foreclosure.
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Consumer case opionion summary, case decided on December 12,2007, LexisNexis #0308-073

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