Judge Walsh

In re NVF Co.

The creditor city and city utility filed a claim in the debtors'chapter 11 bankruptcy case for past due utility charges and property taxes. The debtors and the general unsecured creditors plan trustee moved to disallow, reduce, or reclassify the claims after the property upon which the taxes were assessed was abandoned. The creditors opposed the motion.
Ruling: 
Claim for utility charges and city property taxes on abandoned property allowed.
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Commercial case opionion summary, case decided on September 26,2008, LexisNexis #1008-095

Claybrook v. Metro Auto Xpress LLC (In re American Remanufacturers Inc.)

Chapter 7 trustee filed a complaint against defendant customer seeking avoidance of preferential transfers under 11 U.S.C.S. § 547, avoidance of constructive fraudulent transfers under 11 U.S.C.S. § 548, avoidance of impermissible postpetition transfers under 11 U.S.C.S. § 549, and recovery of avoided transfers under 11 U.S.C.S. § 550. The customer sought dismissal of these counts under Fed. R. Civ. P. 12(b)(6).
Ruling: 
Setoffs in favor of creditor on purchase and sale of auto parts were not transfers and not avoidable.
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Commercial case opionion summary, case decided on July 25,2008, LexisNexis #0808-079

JELD-WEN Inc. v. Van Brunt (In re Grossmans Inc.)

Debtors commenced an adversary proceeding against husband and wife creditors. The complaint sought declaratory and injunctive relief permanently enjoining the creditors from prosecuting their state court personal injury claims arising from asbestos exposure. The debtors also requested an award of damages.
Ruling: 
Asbestos claims arising ten years after debtor's option was confirmed was not enjoined by plan.
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Commercial case opionion summary, case decided on June 09,2008, LexisNexis #0708-061

In re TWA Inc. Post Confirmation Esate

An employee of the debtor filed a motion to compel the purchaser of the debtor's assets (successor in interest) to pay workers'compensation benefits. The successor in interest objected to the court's subject matter jurisdiction to determine the specific amount of the compensation.
Ruling: 
Bankruptcy court had jurisdiction over employee's motion to compel purchaser of debtor's assets to pay workers'compensation benefits.
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Commercial case opionion summary, case decided on September 21,2007, LexisNexis #1007-105

Consolidated SWINC Estate v. Ace USA Inc. (In re Stone & Webster Inc.)

In connection with an adversary proceeding filed against it by plaintiffs, successors-in-interest to two chapter 11 debtors, defendant insurer asked the court for a determination that the proceeding was a non-core proceeding within the meaning of 28 U.S.C. § 157.
Ruling: 
Prepetition insurance dispute was non-core.
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Claybrook v. Consolidated Foods Inc. (In re Bake-Line Group LLC)

Plaintiff, the chapter 7 trustee, brought an action alleging a preferential prepetition transfer under 11 U.S.C. § 547(b) had been made by debtor to defendant, a party unrelated to the bankruptcy proceedings, in the amount of $139,208.24. The parties filed cross-motions for summary judgment.
Ruling: 
Transfer of funds from check erroneously deposited by debtor to proper unrelated entity was not preferential.
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In re Zandford

The debtor filed a petition to disallow a proof of claim filed by the Securities and Exchange Commission ("SEC"). The proof of claim was based on a civil judgment (requiring disgorgement) following a criminal conviction of the debtor for securities law violations. The debtor argued that under the Debt Collection Improvement Act of 1996, 31 U.S.C. § 3701 et seq., the SEC had no standing to assert the claim.
Ruling: 
Claim based on civil judgment for securities law violations was nondischargeable whether or not allowed.
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Alderwoods Group Inc. v. Charter Funerals Inc. (In re Loewen Group Intl Inc. )

Plaintiff, the reorganized successor to the debtors, moved for abstention and referral to arbitration in an adversary action against defendant purchasers for breach of contract, indemnification, breach of the implied covenant of good faith and fair dealing, common law fraud, negligent misrepresentation, unjust enrichment, and promissory estoppel.
Ruling: 
Court granted motion for abstention and referral to arbitration since proceeding would not affect administration of estate and was only remotely related to bankruptcy case.
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In re World Health Alternatives Inc.

Debtors in a chapter 11 case moved for entry of an order approving a settlement agreement among the Official Committee of Unsecured Creditors, debtors, and a prepetition lender with a first lien on all of debtors'assets. The trustee opposed the motion.
Ruling: 
Court approved settlement agreement as in within reasonable range of litigation possibilities and in interest of estate.
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