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judge leonard

In re Babb

Ruling
Compromise of abuse of process and malicious prosecution claims against debtor approved as mistrial would potentially lead to increased costs of retrial to estate.
Procedural posture

Pursuant to 11 U.S.C.S. § 363(b)(1) and Fed. R. Bankr. P. 9019(a), a chapter 7 trustee moved for approval of a compromise with the claimants on their abuse of process and malicious prosecution claims filed against the debtor in state court. The debtor objected to the claim. The bankruptcy court conducted a hearing on the motion.

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Consumer opinion summary, case decided on January 26, 2009 , LexisNexis #0309-060

In re American Health & Human Servs.

Ruling
Plan confirmation denied with prejudice and case dismissed for failure to comply with chapter 11 requirements.
Procedural posture

The debtor moved for confirmation of its chapter 11 plan. The Bankruptcy Administrator moved to convert the case to a chapter 7 case.

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Commercial opinion summary, case decided on January 05, 2009 , LexisNexis #0209-125

In re Joel F. Hollowell Oil Co.

Ruling
Motion to restrict chapter 11 debtor's use of cash collateral denied.
Procedural posture

A debtor filed its petition for relief under chapter 11 of the Bankruptcy Code. The court entered a final order authorizing the debtor's use of cash collateral for its postpetition operating expenses. A company, which had a first lien security interest in all of the debtor's equipment, fixtures, inventory, and accounts receivable, filed a motion to restrict the debtor's continued use of cash collateral, under 11 U.S.C.S. § 363(e).

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Commercial opinion summary, case decided on December 12, 2008 , LexisNexis #0209-041

In re Graham

Ruling
Stay extended in debtor's second chapter 13 case in one year due to demonstrated change in circumstances.
Procedural posture

Debtor, an individual whose prior chapter 13 bankruptcy case (Case 1) had been pending within a year prior to the date on which the instant case (Case 2) was filed, moved to extend the 30-day automatic stay per 11 U.S.C.S. § 362(c) and also sought a turnover of property while two creditors filed motions for relief from stay.

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Consumer opinion summary, case decided on November 18, 2008 , LexisNexis #0109-006

In re Rose

Ruling
Original owner ordered to turnover construction equipment and vehicles removed from debtor in violation of stay.
Procedural posture

A chapter 11 trustee filed a motion against an original owner and an employee for turnover of and an accounting for a backhoe, truck, trailer, and other equipment and property owned by the debtor, pursuant to 11 U.S.C.S. § 542.

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Consumer opinion summary, case decided on October 02, 2008 , LexisNexis #1208-017

In re Lordship Dev. LLC

Ruling
Section 108(d) did not limit period for debtor to redeem foreclosed property where state law did not provide for fixed deadline.
Procedural posture

A creditor filed a motion for relief from the automatic stay in a debtor's chapter 11 bankruptcy case.

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Commercial opinion summary, case decided on September 30, 2008 , LexisNexis #1208-004

In re Eagle Creek Subdivision LLC

Ruling
Debtor-in-possession's continuation of primary real estate development financing approved but secondary financing with priming lien disapproved.
Procedural posture

Bankruptcy debtors-in-possession moved pursuant to 11 U.S.C.S. § 364(c)(1) for authorization to continue loan agreements with primary lenders to allow the debtors to complete their real estate development projects. The debtors also moved pursuant to § 364(d) for authorization to obtain postpetition secondary financing to fund operating costs.

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Commercial opinion summary, case decided on July 10, 2008 , LexisNexis #1108-004

In re Conner Corp.

Ruling
Debtor not entitled to return of unclaimed funds where prior creditor classes had not been paid in full.
Procedural posture

An amount remained on deposit in the registry of a bankruptcy court which represented distributions which were not claimed by creditors of a bankruptcy debtor, and the debtor moved for return of the unclaimed funds pursuant to 11 U.S.C.S. §§ 347(b), 1143.

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Commercial opinion summary, case decided on June 11, 2008 , LexisNexis #0808-030

In re Tippett

Ruling
Suspicious timing of case seemingly filed with sole purpose of frustrating state court litigation denied for bad faith.
Procedural posture

The chapter 13 trustee moved to dismiss debtor's chapter 13 petition, as did movant creditor, a former employee of debtor. The latter party alternatively sought relief from stay to allow her to pursue pending litigation against debtor that was set for trial two weeks after the petition was filed. At issue was whether the filing was in bad faith so that dismissal per 11 U.S.C.S. § 1307(c) was warranted.

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Consumer opinion summary, case decided on May 08, 2008 , LexisNexis #0608-054

In re Westcrowns Inc.

Ruling
Proof of claim for vacation pay by debtor's former president allowed over trustee's objections.
Procedural posture

A chapter 7 trustee objected to a creditor's proof of claim for vacation pay as an 11 U.S.C.S. § 507(a) priority claim.

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Commercial opinion summary, case decided on April 28, 2008 , LexisNexis #0608-135