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southern district of west virginia

In re Mountain Country Partners LLC

Ruling
Involuntary petition filed by three holders of valid promissory notes granted.
Procedural posture

Petitioning creditors filed an involuntary petition under the Bankruptcy Code, seeking an order which placed an LLC into bankruptcy because it was not paying its debts. The LLC opposed the petition.

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Commercial opinion summary, case decided on June 25, 2012 , LexisNexis #0712-109

Ghannam v. Standish (In re Protan)

Ruling
Mandatory abstention did not apply to property damage dispute between debtor and former spouse pending before family court.
Procedural posture

Trustee filed an adversary proceeding in the U. S. Bankruptcy Court for the Southern District of West Virginia, Charleston Division, against defendant creditors, seeking avoidance of a property transfer and repayment of a loan made by a chapter 7 debtor to one of the creditors. The bankruptcy court invalidated a prenuptial agreement and entered judgment in favor of the trustee. The creditors appealed.

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Consumer opinion summary, case decided on September 30, 2011 , LexisNexis #1011-135

Williams v. Basic Contr. Servs.

Ruling
Debtor's defense that failure to disclose EEOC claim in bankruptcy was inadvertent was sufficient to prevent dismissal.
Procedural posture

Plaintiff former employee filed suit based on her allegedly unlawful termination by defendant employer. The complaint alleged: (1) intentional infliction of emotional distress; (2) unlawful reprisal on the basis of whistleblowing in violation of 41 U.S.C.S. § 265; and (3) termination of employment in violation of substantial public policy. The employer filed a motion for judgment on the pleadings or, in the alternative, for summary judgment.

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Consumer opinion summary, case decided on November 09, 2009 , LexisNexis #1209-014

Sampson v. Chase Home Fin.

Ruling
Debtor's failure to timely raise claims regarding origination, terms and execution of loan resulted in waiver.
Procedural posture

Plaintiffs, mortgagors, sued defendants, bank, mortgage corporation, loan assignee, and mortgage broker, and asserted state law causes of action related to the origination, terms, and execution of the loan, the balloon note, and the forbearance agreement. The bank, mortgage corporation, loan assignee, and mortgage broker removed the action to federal court. The bank, the mortgage corporation, and the loan assignee filed motions to dismiss.

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Consumer opinion summary, case decided on November 03, 2009 , LexisNexis #1209-030

Davis v. Rutherford

Ruling
Debtor's state court case that was not timely removed by defendant remanded.
Procedural posture

Plaintiff debtors sued defendants, a sheriff, a clerk, and a purchaser, in state court to nullify a tax sale of their residence. Defendant purchaser removed the case, claiming that plaintiffs' claims were based upon 11 U.S.C.S. § 362(a). Plaintiffs, intervenor bank, and all defendants but the purchaser sought a remand, fees, and costs. A magistrate recommended granting the remand but denying fees and costs. Objections were filed.

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Consumer opinion summary, case decided on August 20, 2009 , LexisNexis #0909-115

In re Hall

Ruling
Purchase money security interest in "910 vehicle," exclusive of negative equity, could not be crammed down.
Procedural posture

Debtors filed a petition under chapter 13 of the Bankruptcy Code and a plan for repaying their creditors. A creditor filed an objection to the debtors' plan, claiming that the plan could not be approved because it proposed to cram down the creditor's interest in a vehicle the debtors purchased less than 910 days before they declared bankruptcy, in violation of 11 U.S.C.S. § 1325(a) (hanging paragraph referencing paragraph 5).

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Consumer opinion summary, case decided on December 03, 2008 , LexisNexis #0409-016

DaimlerChrysler Fin. Servs. Americas LLC v. Jones (In re Jones)

Ruling
Order for return of vehicle repossessed after debtors failed to redeem or reaffirm reversed.
Procedural posture

Defendant creditor appealed a decision of the Bankruptcy Court for the Southern District of West Virginia, which ordered the creditor to return to plaintiffs, a chapter 7 debtor and his non-debtor wife, the vehicle it repossessed.

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Consumer opinion summary, case decided on September 29, 2008 , LexisNexis #0109-073

Brantley v. Williams

Ruling
Dispute involving purchase of non-party involuntary debtor corporation's stock stayed pending resolution of bankruptcy.
Procedural posture

Plaintiffs, the putative purchasers of stock in the non-party debtor corporation from defendant seller, moved for a temporary restraining order and preliminary injunction to enjoin the sale of the stock pending the outcome of the involuntary bankruptcy case. The court considered the issue whether unusual circumstances were present, such that the automatic stay in the bankruptcy case should apply restrain further action in the instant case.

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Consumer opinion summary, case decided on August 18, 2008 , LexisNexis #0908-001

Barker v. King

Ruling
124 medical malpractice cases against debtor remanded to state court.
Procedural posture

Plaintiff patients filed 124 civil actions in the Circuit Court of Putnam County (West Virginia), alleging that defendants, a doctor, a hospital, and others, were liable for injuries the patients sustained. Defendants removed the cases to federal district court, and the patients filed a motion to remand.

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Consumer opinion summary, case decided on March 13, 2008 , LexisNexis #0408-025

Barker v. King

Ruling
124 medical malpractice cases against debtor and others remanded to state court for expeditious resolution.
Procedural posture

Plaintiff was one of numerous people who filed 124 civil actions in the Circuit Court of Putnam County (West Virginia), alleging that defendants, a doctor, a hospital, and others, were liable for injuries the doctor caused. Defendants removed the cases to federal district court, and plaintiffs filed a consolidated motion to remand.

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Consumer opinion summary, case decided on March 13, 2008 , LexisNexis #0408-062