Judge Torruella

Smith v. Pritchett (In re Smith)

A state court entered judgment against appellee debtor in the amount of $ 75,010, which represented late payment penalties. The debtor filed a proposed chapter 13 plan. Appellant ex-wife filed a proof of claim and an objection to confirmation. The debtor moved to avoid the ex-wife's lien. A bankruptcy court denied the motion. The Bankruptcy Appellate Panel for the First Circuit (BAP) reversed the bankruptcy court's order. The ex-wife appealed.
Ruling: 
Late payment penalties ordered by state court pursuant to debtor's separation agreement were not domestic support obligations and were dischargeable.
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Consumer case opionion summary, case decided on November 06,2009, LexisNexis #1209-012

Morley v. Ontos Inc. (In re Ontos Inc.)

Appellants, former employees of debtor corporation and alleged creditors, challenged an order from the District Court for the District of Massachusetts that affirmed a bankruptcy court's approval of a stipulation for waiver and release entered by the trustee for the bankruptcy estate with appellees, debtor's corporate officers, shareholders, and board members.
Ruling: 
Claims for breach of fiduciary duty against directors of debtor were property of the estate and could be settled by trustee.
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