Judge Sontchi

Official Comm. of Unsecured Creditors v. Catholic Diocese of Wilmington Inc. (In re Catholic Diocese of Wilmington Inc.)

In a chapter 11 case, plaintiff, the Official Committee of Unsecured Creditors, sought a declaratory judgment that no trust relationship existed between defendant debtor and the non-debtor defendants and, thus, all the funds in a pooled investment account (PIA) were property of the debtor's estate under 11 U.S.C.S. § 541(a).
Ruling: 
Pooled investment account was property of debtor diocese's estate due to comingling of trust and debtor's funds.
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Commercial case opionion summary, case decided on June 28,2010, LexisNexis #0910-085

In re Premier Intl Holdings Inc.

In this chapter 11 case, the Official Committee of Unsecured Creditors filed a motion to compel an informal committee of bondholders to comply with Fed. R. Bankr. P. 2019 by disclosing information about their claims against the debtor.
Ruling: 
Bankruptcy court denied motion of official committee of unsecured creditors to order informal committee of bondholders to disclose information about claims.
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Commercial case opionion summary, case decided on January 20,2010, LexisNexis #0210-133

Lovesac Corp. v. Cox (In re Lovesac Corp.)

Plaintiff liquidating trust filed a motion for summary judgment in this adversary proceeding it brought alleging that the debtor's conveyance of real property by quit claim deed constituted an avoidable fraudulent transfer pursuant to 11 U.S.C.S. § 548.
Ruling: 
Issues of fact prevented avoidance of conveyance of quitclaim deed as fraudulent transfer.
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Commercial case opionion summary, case decided on January 15,2010, LexisNexis #0210-061

Crowe v. Moran (In re Moran)

Defendant debtor moved to dismiss the complaint of plaintiff creditors to have debt declared non-discharged in accordance with 11 U.S.C.S. § 523(a). The debtor argued that the amended complaint failed to state a claim upon which relief could be granted.
Ruling: 
Motion to dismiss dischargeability proceeding denied where claim was insufficiently pled.
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Consumer case opionion summary, case decided on September 11,2009, LexisNexis #1009-046

In re American Home Mortg. Holdings Inc.

A purchaser of mortgage loans from bankruptcy debtors under a repurchase agreement filed proofs of claim in the debtors' bankruptcy cases based on the difference between the repurchase price the debtors' were obligated to pay after default and the value of the loan portfolio. The debtors' objected to the claims on the ground that the value of the loan portfolio on the date the agreement was accelerated was greater than the repurchase price.
Ruling: 
Claim by purchaser of loan package valued at greater than purchase price on acceleration date under commercially reasonable methodology disallowed.
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Commercial case opionion summary, case decided on September 08,2009, LexisNexis #1009-022

In re Sportsmans Warehouse Inc.

Bankruptcy debtors operated retail stores in leased premises, and certain of the leases were rejected. Affiliated landlords under the leases moved for allowance and payment of administrative claims for rent, including real property taxes.
Ruling: 
Landlords' administrative claims for rent under rejected leases for the period between the bankruptcy petition dates through the first of the following month denied.
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Commercial case opionion summary, case decided on August 03,2009, LexisNexis #0909-043

In re Foothills Tex. Inc.

Corporate debtors brought a motion seeking authorization to pay contractually due retention bonuses to two vice presidents of the debtors, and thereby assume the retention bonus agreements with the two officers. At issue was whether the recipients were insiders; if so, the failure of the debtors to comply with the requirements of 11 U.S.C.S. § 503(c)(1) would likely bar the payments.
Ruling: 
Authorization to pay contractually due retention bonuses to two vice presidents of the debtor who were insiders denied.
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Commercial case opionion summary, case decided on July 28,2009, LexisNexis #0909-046

In re Akulova

The trustee objected to the chapter 7 debtor's amendment of her schedules to include the proceeds of her personal injury claim as an exempt asset.
Ruling: 
Debtor could not amend schedules to include and claim exemption for personal injury claim not disclosed originally.
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Consumer case opionion summary, case decided on July 21,2009, LexisNexis #0909-084

DB Structured Prods. v. American Home Mortg. Holdings (In re American Home Mortg. Holdings)

The court earlier issued a bench ruling approving an executed stalking horse asset purchase agreement (APA) and authorizing the sale of appellee debtors' servicing business to a buyer. Appellant was a party to a Master Loan Purchase and Servicing Agreement with debtor entities. It objected to the Sale Motion and proposed sale to the buyer. The matter was before the court on remand from the district court.
Ruling: 
Debtor could sell loan servicing agreement free and clear of claims arising under severable loan servicing agreement.
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Commercial case opionion summary, case decided on March 13,2009, LexisNexis #0409-042

In re Hart

The debtors and their mortgage lender creditor submitted a reaffirmation agreement for the court's approval. The creditor held a security interest in the debtors' poultry farm, related farm equipment, and the proceeds of the poultry business. The total outstanding balance on three loans was $ 921,100.36. The total monthly payment due on the loans under the reaffirmation agreement was $ 13,853.58, which exceeded their net income.
Ruling: 
Reaffirmation agreement disapproved due to failure to rebut presumption of undue hardship.
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Consumer case opionion summary, case decided on March 10,2009, LexisNexis #0409-080

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