Judge Sontchi

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

In re Broadstripe LLC

The chapter 11 debtors filed an adversary proceeding against a cable television cooperative, seeking a declaration that a member agreement was an executory contract under 11 U.S.C.S. § 365 and that pursuant to the agreement, the cooperative was obligated to afford the debtors an opportunity to participate in certain new and existing master agreements. Pursuant to Fed. R. Bankr. P. 7065, the debtors moved for a preliminary injunction.
Ruling: 
Cable television cooperative member agreement was an executory contract.
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Commercial case opionion summary, case decided on March 10,2009, LexisNexis #0409-076

In re Goodys Family Clothing Inc.

Chapter 11 debtors objected to a claim filed by a creditor on the grounds that it was misclassified as an administrative claim under 11 U.S.C.S. § 503(b)(9).
Ruling: 
Service vendor was not entitled to administrative expense claim.
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Commercial case opionion summary, case decided on February 06,2009, LexisNexis #0309-078

In re American Home Mortg. Holdings Inc.

A professional retained by chapter 11 debtors under 11 U.S.C.S. § 327(a) sought reimbursement of certain expenses incurred by third-party vendors pursuant to 11 U.S.C.S. § 330(a)(1)(B).
Ruling: 
Postpetition fees of professional who performed foreclosure services for debtor mortgage originator were reimbursable.
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Commercial case opionion summary, case decided on October 31,2008, LexisNexis #1208-074

In re Goodys Family Clothing Inc.

Debtors, a family clothing store and its affiliates, filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code. Creditors, landlords that rented property to the debtors, filed administrative claims against the debtors' bankruptcy estates, pursuant to 11 U.S.C.S. § 503(b)(1). The debtors filed objections to those claims.
Ruling: 
Landlord's administrative expense claim for unpaid postpetition rent allowed.
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Commercial case opionion summary, case decided on August 26,2008, LexisNexis #0908-075

In re Baker

The debtors filed an emergency motion to reopen and for an order to show cause for willful violation of a court order for wrongful repossession of a motor vehicle. The debtors argued that the creditor wrongfully repossessed the debtors' motor vehicle after the debtors and the creditor timely entered into a reaffirmation agreement under 11 U.S.C.S. § 524.
Ruling: 
Creditor's repossession of vehicle was wrongful as pass-through option remains available under BAPCPA.
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Consumer case opionion summary, case decided on June 10,2008, LexisNexis #0708-045

In re Smale

The trustee moved to dismiss the debtor's chapter 7 case pursuant to 11 U.S.C.S. § 707(b)(2). The issue was whether the debtor could deduct, from his monthly disposable income, scheduled monthly payments for three of the four motor vehicles which he owned, but which he intended to surrender, or whether the presumption of abuse arose because the payments were not deductible.
Ruling: 
Payments on property to be surrendered could be deducted in calculating monthly disposable income.
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Consumer case opionion summary, case decided on June 09,2008, LexisNexis #0708-051

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