In re Sandy Hills LLC
Mar
10
2014
Ruling
Creditor entitled to postjudgment interest at state law judgment rate rather than contract default rate.
Issue(s)
What was the appropriate rate of interest on claim by oversecured creditor in case of single asset real estate debtor?
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Court
:
- 11 U.S.C.
Brown Publg Co. Liquidating Trust v. AXA Equitable Life Ins. Co. (In re Brown Publg Co.)
Jun
24
2013
Ruling
Payments by debtor towards life insurance policies on two of its officers were not avoidable.
Procedural posture
Liquidating trust (the Trust) filed an adversary proceeding against insurer to avoid payments it received from the debtor as fraudulent transfers pursuant to 11 U.S.C.S. § 548 and 550. The insurer filed a motion for summary judgment.
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Court
:
- FRBP
In re Kramer
Jun
18
2013
Ruling
Motion to extend time to object to discharge denied due to failure to effect proper service or demonstrate cause.
Procedural posture
A creditor filed a objection to a proposed order denying its motion to extend the time to object to a chapter 7 debtor's discharge or the dischargeability of a debt under Fed. R. Bankr. P. 4004 and 4007.
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Court
:
In re Neils Mazel Inc.
May
14
2013
Ruling
Purchaser of debtor's real property could not reopen case after more than seven years to seek contempt order that had minimal relationship to debtor.
Procedural posture
Movant, a purported Indian tribal organization, sought an order reopening the instant closed bankruptcy case under 11 U.S.C.S. § 350(b), for the purpose of holding certain parties in contempt and various other forms of relief. Movant had previously held a right to purchase certain real property from the debtor is a group of individuals purporting to be an Indian tribe, but subsequently defaulted on that transaction.
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Court
:
- FRBP
In re Brown Publg Co.
Apr
29
2013
Ruling
Law firm disqualified from representing debtor due to failure to adequately disclose conflict of interest.
Procedural posture
A liquidating trust that was created under a bankruptcy plan the court approved after a publishing company, a media holding company, and affiliated businesses ("debtors") declared chapter 11 bankruptcy filed an adversary proceeding against the debtors' former officers, directors, shareholders, and affiliates. The debtors' former CEO sought an order that disqualified a law firm from serving as counsel to the liquidating trust.
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Court
:
- 11 U.S.C.
FPSDA II LLC v. Larin (In re FPSDA I LLC)
Dec
26
2012
Ruling
Stay did not extend to Fair Labor Standards Act action by employee against individuals hired by debtor employer.
Procedural posture
Plaintiff chapter 11 debtors filed an adversary proceeding against defendant employee, seeking an order which prohibited the employee from prosecuting an action she filed in the U.S. District Court for the Eastern District of New York against two individuals the debtors hired to help them operate franchise businesses they owned. The debtors filed a motion for a preliminary injunction.
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Court
:
Haller v. Abbale (In re Abbale)
Jul
23
2012
Ruling
Creditors promised, but never issued, shares by debtor entitled to portion of proceeds of trustee's sale of debtor's existing shares.
Procedural posture
Plaintiff creditors brought an adversary proceeding seeking a determination of the extent of their interest in certain shares a limited liability company (LLC) held by the chapter 7 trustee on behalf of debtor's bankruptcy estate, and a determination of their entitlement to continued income from such shares even after the trustee sold the shares pursuant to 11 U.S.C.S. § 363.
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Court
:
- 11 U.S.C.
Casano v. IRS (In re Casano)
May
16
2012
Ruling
Taxes for which debtor failed to file return prior to IRS assessment were nondischargeable.
Procedural posture
Before the court was debtor's motion for summary judgment seeking a determination that federal income taxes due and owing to United States, for tax years ending December 31 of 2001 and 2002 were dischargeable pursuant to 11 U.S.C.S. § 523(a)(1)(B), the government's cross motion for summary judgment claiming that these taxes were excepted from discharge pursuant to § 523(a)(1)(B).
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Court
:
- 11 U.S.C.
Pryor v. Tiffen (In re TC Liquidation LLC)
Dec
06
2011
Ruling
Trustee entitled to avoid payments made by debtor LLC to individuals to pay taxes owed on debtor's profits.
Procedural posture
Debtor LLC, an "S" corporation, declared chapter 11 bankruptcy in February 2003 and remained in chapter 11 bankruptcy until June of 2004, when the case was converted to one under chapter 7. A trustee who was appointed to administer the debtor's chapter 7 bankruptcy estate learned that individuals who purchased a company from their parents borrowed money so they could acquire the company and other businesses and received salary increases and dividend payments from the debtor which allowed them to repay the loans and to pay taxes they owed on profits the debtor made, and he filed adversary proceedings against those individuals, seeking a determination that he could recover those payments. The court found that the trustee was entitled under 11 U.S.C.S. § 548(a)(1)(A) to recover payments defendants received so they could pay taxes they owed on profits the company made, but was not entitled to recover money defendants received as salary increases or dividends which they use to repay debts they owed to their parents and other lenders. The debtor did not derive any value from dividends it paid defendants so they could pay their taxes.
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Court
:
Smoot v. Wachovia Mortg. (In re Smoot)
Nov
01
2011
Ruling
Wholly unsecured junior mortgage on debtor's residence could stripped off.
Procedural posture
Plaintiff Chapter 7 debtor filed an adversary proceeding against defendant mortgage company, seeking a determination that a junior mortgage the company held on the debtor's residence could be stripped off pursuant to 11 U.S.C.S. § 506 because it was wholly unsecured. The parties filed cross-motions for summary judgment on the debtor's claim.
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Court
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