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judge fitzgerald

In re ACandS Inc.

Ruling
Debtor in possession was a proper plan proponent and plan approved as meeting all code requirements.
Procedural posture

Debtor, a debtor in possession (DIP), proposed a plan of reorganization and sought confirmation from the court. After various objections were resolved or withdrawn and after the court considered the provisions thereof, it proceeded to consider whether the plan was properly approved pursuant to, inter alia, 11 U.S.C.S. § 1122, 11 U.S.C.S. § 1123, 11 U.S.C.S. § 1126, 11 U.S.C.S. § 1129.

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Commercial opinion summary, case decided on May 06, 2008 , LexisNexis #0908-069

In re Federal-Mogul Global Inc.

Ruling
Debtors could assign asbestos insurance policies to 524(g) trust despite anti-assignment provisions.
Procedural posture

Objecting insurers challenged the assignment by chapter 11 debtors of asbestos insurance policies to a 11 U.S.C.S. § 524(g) trust, notwithstanding anti-assignment provisions in or incorporated in the policies and applicable state law.

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Commercial opinion summary, case decided on March 19, 2008 , LexisNexis #0408-103

In re Federal-Mogul Global Inc.

Ruling
Plans of collective companies against which 500,000 asbestos personal injury claims were pending approved.
Procedural posture

Before the court was the proposed fourth amended joint plan of reorganization, as modified, for confirmation. The court separately entered an order confirming the plan for debtors and debtors in possession. The court entered findings of fact and conclusions of law with respect to the confirmation of the plan, under Fed. R. Civ. P. 52, as made applicable by Fed. R. Bankr. P. 7052 and 9014.

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Commercial opinion summary, case decided on November 08, 2007 , LexisNexis #0108-031

Goldstein v. Hickory Brands Inc. (In re Just for Feet Inc.)

Ruling
Ordinary course of business defense to avoidance failed where creditor failed to establish industry standards.
Procedural posture

Debtors, a corporation and others, filed a petition under chapter 11. The case was converted to one under chapter 7, and plaintiff trustee filed adversary proceedings against defendants, a corporation (supplier) and one of its divisions, seeking recovery of alleged preferential payments, pursuant to 11 U.S.C. §§ 547(b) and 550. The parties filed cross-motions for summary judgment.

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Commercial opinion summary, case decided on September 12, 2007 , LexisNexis #1007-101

In re W.R. Grace & Co.

Ruling
71 asbestos-related claims filed by single law firm denied as based on client authorizations that were either undated or dated after bar date.
Procedural posture

Debtors moved for an order disallowing and expunging 71 property damage claims signed by a named law firm on purported behalf of various clients and filed thereafter on the ground that the firm had failed to establish that it had authority, prior to the bar date, to file such claims. At issue was whether the claims were executed by each client's "authorized agent" within the meaning of Fed. R. Bankr. P. 3001(b).

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opinion summary, case decided on April 17, 2007 , LexisNexis #0607-035

In re W.R. Grace & Co.

Ruling
Court denied relief from stay that would have allowed state to join debtor in 120 asbestos claims actions.
Procedural posture

The State of Montana filed a motion for relief from the automatic stay so that the debtors could be joined as third-party defendants in 120 actions currently pending against the State of Montana in Montana state courts (state court actions). These actions alleged violations of the State's independent duty to its citizens.

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opinion summary, case decided on April 13, 2007 , LexisNexis #0607-083

Younger v. Pennsylvania Res. Corp. (In re Younger)

Ruling
Debtor's attorney's fees approved in reduced amount due to excessive research and unnecessary court hearings attributable to attorney's conduct.
Procedural posture

Chapter 13 debtors' attorney sought recovery of attorney's fees under 11 U.S.C. § 330(a)(4)(B). Trustee objected to the fee petition.

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opinion summary, case decided on December 14, 2006 , LexisNexis #0207-055

Official Comm. of Unsecured Creditors v. Airway Indus. (In re Airway Indus.)

Ruling
Bonuses owed by secured creditor to debtor's executives pursuant to prepetition agreement were not subject to turnover.
Procedural posture

The official committee of unsecured creditors for chapter 11 debtor filed a motion for an entry of an order pursuant to 11 U.S.C. §§ 503, 541, 542 and 105 directing that bonuses provided by a secured creditor and to be paid to four executives of debtor be turned over to debtor's estate or, in the alternative, disallowing or prohibiting payment of the bonuses pursuant to 11 U.S.C. § 503.

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opinion summary, case decided on October 03, 2006 , LexisNexis #1006-108

Bankers Trust Co. of Ca. N.A. v. Gillcrese (In re Gillcrese)

Ruling
Bank was denied motion seeking determination that automatic stay as to estate property had been terminated pursuant to section 362(c)(3)(A).
Procedural posture

In debtor's chapter 13 case, movant bank sought a determination that the automatic stay as to property of the estate had been terminated pursuant to 11 U.S.C. § 362(c)(3)(A).

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opinion summary, case decided on July 20, 2006 , LexisNexis #0806-072

Thomas v. Countrywide Home Loans Inc. (In re Thomas)

Ruling
Court deemed that debtors could modify creditor's rights since escrow funds in mortgage instrument took mortgage out of anti-modification protection.
Procedural posture

Plaintiffs, debtors, filed a complaint against defendant creditor seeking a determination of the creditor's secured status. The debtors moved for partial summary judgment. The issues were whether: (1) the creditor's secured interest fell within the antimodification provisions of 11 U.S.C. § 1322(b)(2), (2) judicial estoppel applied due to the creditor's assertion of the property's value in an earlier proceeding.

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opinion summary, case decided on June 13, 2006 , LexisNexis #0706-068