Judge Sontchi

In re Scioli

A chapter 7 trustee filed an objection pursuant to Fed. R. Bankr. P. 4003(b) to a debtor's claim of exemption of three vehicles under 11 U.S.C.S. § 522(b)(3)(B) on the grounds that the vehicles were not held by the debtor and his non-debtor wife as tenants by the entirety.
Ruling: 
Trustee's objection to claimed exemption of three vehicles sustained as not held by debtor and non-debtor spouse as tenants by the entirety.
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Consumer case opionion summary, case decided on January 28,2013, LexisNexis #0213-081

Burtch v. Masiz (In re Vaso Active Pharms. Inc.)

Debtor's chapter 11 avoidance action trustee, brought an adversary complaint against defendant-transferees, an officer of the debtor and a former-officer turned consultant, alleging the two received fraudulent or avoidable transfers, in violation of 11 U.S.C.S. §§ 547(b), 548(a)(1), 550, and Del. Code Ann. tit. 6, §§ 1304 and 1305. The trustee moved for partial summary judgment on the claims.
Ruling: 
Transfers made in weeks prior to petition date while debtor was insolvent were avoidable.
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Commercial case opionion summary, case decided on October 09,2012, LexisNexis #1112-022

Sass v. Vector Consulting Inc. (In re American Home Mortg. Holdings Inc.)

Plaintiff Official Committee of Unsecured Creditors filed a complaint against defendant creditor seeking to avoid and recover four payments as preferential transfers pursuant to 11 U.S.C.S. § 547(b). The chapter 11 plan trustee was substituted as plaintiff. The creditor asserted that it had a complete ordinary course of business defense under § 547(c)(2) and to a limited extent, a new value defense under § 547(c)(4) and/or (c)(1).
Ruling: 
Preference period payments made pursuant to professional service agreement that conformed to industry standards were within ordinary course of business exception to avoidance.
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Commercial case opionion summary, case decided on June 05,2012, LexisNexis #0612-125

In re Kemeta LLC

Creditor, a licensee of certain technology from the debtor, brought a motion to compel the chapter 7 trustee's compliance with the confidential exclusive license agreement and with 11 U.S.C.S. § 365(n).
Ruling: 
Creditor could enforce technology license agreement as binding executory contract.
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Commercial case opionion summary, case decided on May 04,2012, LexisNexis #0612-012

In re Coleman

During child custody proceedings, a bankruptcy debtor was ordered by a state court to pay attorney fees to the debtor's former spouse, was subsequently assessed penalty interest for failing to pay the fees, and was thereafter ordered to pay additional fees to the spouse. The debtor moved to avoid the spouse's judicial lien based on the fee and interest awards as impairing the debtor's exemptions under 11 U.S.C.S. § 522.
Ruling: 
Judicial lien avoided as impairing debtor's exemption except to the extent securing additional fee award that was a domestic support obligation.
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Consumer case opionion summary, case decided on March 16,2012, LexisNexis #0412-081

Guiliano v. Almond Inv. Co. (In re Carolina Fluid Handling Intermediate Holding Corp.)

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant supplier of parts for bankruptcy debtors' fuel systems business, seeking to avoid payments by the debtors to the supplier for parts delivered prior to the debtors' bankruptcy petition as preferential transfers pursuant to 11 U.S.C.S. § 547(b). The supplier moved for summary judgment.
Ruling: 
Payments pursuant to executory contract assumed by debtor could not be avoided as preferential.
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Commercial case opionion summary, case decided on March 14,2012, LexisNexis #0412-126

In re USDigital Inc.

Chapter 7 trustee filed an adversary proceeding against defendants, several individuals and businesses, and three individuals and one of the businesses asked the court to determination if six counts pending against them were core or non-core proceedings. The court addressed the question of whether the trustee's count seeking equitable subordination of claims under 11 U.S.C.S. § 510(c) was a core or a non-core proceeding.
Ruling: 
Determination that claims were subject to equitable subordination was a core proceeding.
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Commercial case opionion summary, case decided on December 20,2011, LexisNexis #0112-049

In re Ace Mortg. Funding LLC

Before the court in debtor's Chapter 7 case was a motion filed by a landlord seeking allowance and payment as an administrative expense of unpaid post-petition rent pursuant to 11 U.S.C.S. § 503(b)(1)(A). The Chapter 7 trustee asserted two defenses to the motion.
Ruling: 
Landlord not entitled to administrative expense claim for rent due where landlord took possession and control of the premises.
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Commercial case opionion summary, case decided on April 27,2011, LexisNexis #0511-113

Compass Bank v. North Am. Petroleum Corp. USA (In re North Am. Petroleum Corp. USA)

Debtors' adversary complaint sought rulings as to the meaning and effect of a capital recovery agreement (CRA) with defendant oil and gas exploration companies (OG1 and OG2) and relief from obligations claimed to have been assumed thereunder. OG2 sought payment of amounts allegedly due to it under the CRA as administrative expenses (AEs) per 11 U.S.C.S. § 503(b)(1)(A) and 11 U.S.C.S. § 507(a)(2). Other parties included banks that had intervened.
Ruling: 
Oil and gas exploration company allowed administrative expense claim for salt water disposal costs under voided agreement with debtor.
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Commercial case opionion summary, case decided on February 18,2011, LexisNexis #0311-045

In re Miller

Creditor, which held a purchase money security interest in a chapter 7 debtor's vehicle, filed a motion for relief from stay against the debtor.
Ruling: 
Relief from stay granted where debtor failed to indicate intention to surrender, reaffirm or redeem or assume unexpired lease.
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Consumer case opionion summary, case decided on January 05,2011, LexisNexis #0211-010

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