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In re Southcoast Express Inc.

Feb
13
2006
Ruling
Court ruled that the automatic stay did not apply to a lease terminated prepetition by the expiration of the lease term, but an evidentiary hearing was needed to determine if the lease was properly terminated.
Procedural posture

A lessor of a commercial property contended that it terminated a bankruptcy debtor's lease of the property before the debtor filed its bankruptcy petition, and thus the automatic bankruptcy stay did not bar the lessor's eviction action under 11 U.S.C. § 362(b)(10). The lessor moved for an order determining that the bankruptcy stay did not apply or granting relief from the stay.

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opinion summary, case decided on February 13, 2006 , LexisNexis #0306-044
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In re Abbott

Feb
13
2006
Ruling
Servicer of a creditor's mortgage was denied claim for additional prepetition arrearages since that claim had been addressed in prior confirmed plans.
Procedural posture

The debtor filed a motion to obtain a determination that the prepetition arrearage that was owed to the creditor had been paid in full. The creditor was the holder of the first mortgage on the debtor's residence. The creditor objected to the motion, on the grounds that the debtor continued to owe an additional amount of prepetition arrearage.

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opinion summary, case decided on February 13, 2006 , LexisNexis #0506-031
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Jalbert v. M.G.E. UPS Sys. (In re CGI Liquidation Inc.)

Feb
13
2006
Ruling
Corporation was denied partial summary judgment in a transfer avoidance action since the corporation failed to show that the payment from debtors was less than it would have been entitled to receive under chapter 7 and, thus, not preferential.
Procedural posture

Plaintiff, the liquidating supervisor of the consolidated debtors, filed an adversary proceeding seeking a return of three alleged preferential payments to defendant corporation. The corporation denied that the payments were avoidable preferences and filed a motion for partial summary judgment seeking judgment on one of the payments.

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opinion summary, case decided on February 13, 2006 , LexisNexis #0506-020
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Gharavi v. U.S. Dept. of Educ. (In re Gharavi)

Jan
10
2006
Ruling
Court discharged most of the debtor's student loan debt due to undue hardship related to the debtor's multiple sclerosis.
Procedural posture

Plaintiff debtor filed an adversary proceeding seeking the discharge of her student loans pursuant to 11 U.S.C. § 523(a)(8). Defendant creditors defended the complaint by arguing that the debtor had resources to pay the obligation. The court held an evidentiary hearing.

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opinion summary, case decided on January 10, 2006 , LexisNexis #0206-112
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Stone v. Casiello (In re Casiello)

Nov
07
2005
Ruling
Court held that it had jurisdiction to impose sanctions for attorneys'unreasonable prolonging of proceedings.
Procedural posture

After the bankruptcy court entered judgment in favor of defendant debtor, the debtor then filed a motion for sanctions pursuant to 11 U.S.C. § 105(a), 28 U.S.C. § 1927, Fed. R. Bankr. P. 9011. The bankruptcy court ruled that the motion was untimely. The U.S. District Court remanded the matter, holding that there were no time constraints under 28 U.S.C. § 1927.

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opinion summary, case decided on November 07, 2005 , LexisNexis #0106-035
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In re Coastal Bus & Equip. Sales Inc.

Sep
14
2005
Ruling
IRS was granted right to apply prepetition tax liability refunds against unpaid postpetition tax liability incurred during the debtor's chapter 11 case under a right of recoupment.
Procedural posture

Creditor IRS moved for relief from the automatic stay to setoff pre-petition tax overpayments of the debtor against its unpaid tax liabilities incurred during the pendency of its chapter 11 case, including withholding, Federal Insurance Contributions Act ("FICA"), and Federal Unemployment Tax Act taxes.

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opinion summary, case decided on September 14, 2005 , LexisNexis #0106-095
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Lucas v. Lyle (In re Lyle)

May
23
2005
Ruling
Debt for unlicensed contractor debtor's damage to a residence from defective work was deemed dischargeable since the debtor did not misrepresent that the debtor was unlicensed.
Procedural posture

Plaintiff creditors, owners of a residence, brought an adversary proceeding against defendant bankruptcy debtor, a contractor, alleging that a debt to the owners for the contractor's defective work was nondischargeable under 11 U.S.C. § 523(a)(2)(A) based on the contractor's misrepresentation that the contractor was licensed. The bankruptcy court reconsidered the owners'claim upon remand from the district court.

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opinion summary, case decided on May 23, 2005 , LexisNexis #0106-049
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