- 11 U.S.C.
Mass. Bd. of Registration in Pharm. v. Drug Assist Health Solutions Inc.
Jan
31
2006
Ruling
Preliminary injunction decision enjoining a licensing board from revoking the debtor's pharmacy license was reversed since revocation was an act of governmental regulatory power intended to enjoin conduct threatening the public welfare.
Procedural posture
Defendant Massachusetts Board of Registration in Pharmacy appealed a decision of the bankruptcy court, which granted preliminary injunctive relief to debtor, enjoining the Board from taking any action to revoke debtor's pharmacy license.
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Court
:
In re Rudnick
Jan
30
2006
Ruling
Court denied a stay of an order allowing for the hiring of a real estate broker to sell property co-owned by the debtor and the debtor's former wife since requiring the wife to pay a commission to purchase the debtor's interest in the property did not materially harm the wife.
Procedural posture
The debtor's former wife moved for a stay pending appeal of the court's order allowing the employment a real estate broker to sell certain real property which she and the debtor co-owned. The former wife made an initial offer to purchase the property. The broker then found a third- party who submitted a higher offer. The former wife wanted to match the offer, but did not want to pay the broker's commission if her offer were accepted.
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Court
:
- 11 U.S.C.
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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Court
:
- 11 U.S.C.
In re Amherst Techs. LLC
Jan
05
2006
Ruling
Court ruled that the interim trustee had offered sufficient proof that the creditor had an interest materially adverse to the other unsecured creditors and thus was not qualified to request an election and vote for a permanent trustee.
Procedural posture
In a core proceeding of 11 jointly administered chapter 7 cases, movant, a newly elected chapter 7 trustee, brought a preliminary objection to resolve a disputed election pursuant to Fed. R. Bankr. P. 2003(d)(2). The U.S. trustee filed a report of the disputed chapter 7 election. The court held a preliminary status meeting and a final hearing to resolve the disputed election.
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Court
:
- 11 U.S.C.
In re Plymouth Rubber Co.
Dec
30
2005
Ruling
Court granted the debtors' motion for authority to make payments under the employee retention plan as an administrative claim so that the debtors could make severance payments when they became due.
Procedural posture
The debtors, two companies that were being jointly administered in bankruptcy proceedings, filed a motion to allow one of the debtors to make payments pursuant to an employee retention plan so that the debtors could pay benefits owed to the employees once they are terminated during the wind-down of the debtor's manufacturing operations. The debtors claimed the expense was entitled to administrative expense priority under 11 U.S.C. § 503(b)(1).
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Court
:
- 28 U.S.C.
Grosser v. Lang (In re Northeastco Door & Millwork Co.)
Dec
21
2005
Ruling
Court abstained from hearing the breach of contact action and remanded it back to the state court since the bankruptcy court could not conduct a jury trial without consent of both parties, which the court did not have.
Procedural posture
Plaintiff seller of total interest in defendant corporate bankruptcy debtor brought an action in state court against the debtor and defendant principal of the debtor, alleging breach of the contract of sale. The bankruptcy trustee removed the action to the bankruptcy court after the debtor filed its bankruptcy petition, and the seller moved for abstention and to remand the action to state court.
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Court
:
- 11 U.S.C.
Abboud v. Ground Round Inc. (Ground Round Inc.)
Dec
15
2005
Ruling
Landlord was entitled to enforce a lease's retransfer of a liquor license provision, and the debtor's argument that the landlord had an alternative right of payment remedy available that constituted a dischargeable claim was rejected.
Procedural posture
Appellee landlord commenced an adversary proceeding to determine appellant chapter 11 debtor's interest in a liquor license previously used in its operation of a restaurant at a leased premises. The bankruptcy court granted the landlord summary judgment, holding that the landlord was entitled to enforce a retransfer provision under the lease. The debtor appealed.
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- 28 U.S.C.
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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Court
:
- FRBP
Berman v. Bill Fields Trucking (In re HNRC Dissolution Co.)
Sep
30
2005
Ruling
Sanctions were not imposed against trustee who filed preference actions after statute of limitations period but withdrew them before sanctions motion was filed.
Procedural posture
Plaintiff liquidating trustee filed preference actions against defendant, one of 38 similarly situated defendants. The trustee filed the preference actions after the statute of limitations had expired. The trustee subsequently moved for voluntary dismissal of the actions, which motion was granted. Defendant moved for sanctions pursuant to Fed. R. Bankr. P. 9011.
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Court
:
- 11 U.S.C.
In re Penney
Sep
26
2005
Ruling
Court denied a trustee's application to employ counsel due to an actual conflict of interest in counsel representing a creditor and the estate.
Procedural posture
The chapter 7 trustee filed an application to employ counsel. Proposed counsel and his firm represented a secured creditor with a claim against the bankruptcy estate. The issue was whether an actual conflict of interest existed with respect to counsel's dual representation of the creditor and the estate.
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Court
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