Judge Stewart

Chilton v Moser (In re Chilton)

Appellant chapter 7 trustee sought judicial review of a decision by the District Court for the Eastern District of Texas to reverse a bankruptcy court's ruling that an inherited Individual Retirement Account (IRA) did not qualify for exemption under 11 U.S.C.S. § 522(d)(12).
Ruling: 
Inherited IRA properly held to be exempt.
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Consumer case opionion summary, case decided on March 12,2012, LexisNexis #0412-011

ASARCO Inc. v. Elliott Mgmt. (In re ASARCO LLC)

The bankruptcy court issued an order that authorized debtor to reimburse qualified bidders for expenses incurred in connection with the sale of a substantial asset of the debtor's estate. Debtor's parent companies appealed the order. The United States District Court for the Southern District of Texas affirmed, and confirmed the parent's bankruptcy reorganization plan. Appellants, debtor and the parent companies, appealed the reimbursement order.
Ruling: 
Business judgment standard properly applied to order for reimbursement of qualified bidders issued before due diligence and work fees were incurred.
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Commercial case opionion summary, case decided on August 16,2011, LexisNexis #0911-032

In re Jessop

A U.S. Trustee sought to dismiss or transfer venue because the debtors filed their case in Utah when they had admittedly been living in Arizona for the ten months prior to filing. The debtors sought to have venue transferred rather than the case dismissed for improper venue. In its proposed findings and conclusions, a bankruptcy court recommended the transfer.
Ruling: 
Transfer, rather than dismissal, ordered where debtor had lived in another state for ten months prior to filing.
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Consumer case opionion summary, case decided on February 13,2009, LexisNexis #0309-135

Bennett v. Society of Lloyds (In re Bennett)

Debtor filed an adversary proceeding against appellee judgment creditor, seeking an order allowing him to offset the amount of a judgment the creditor obtained in a district court by the amount of a judgment that was entered by a British court. The bankruptcy court found that the action was frivolous, and it ordered the debtor's attorney to pay the creditor's attorney fees in the amount of $ 23,305. The debtor's attorney appealed.
Ruling: 
Sanctions against debtor's attorney for filing frivolous proceeding upheld and fees awarded to creditor for defending appeal.
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Consumer case opionion summary, case decided on September 24,2008, LexisNexis #1008-105

Rupp v. Mayberry (In re Crocker Cos.)

Plaintiff bankruptcy trustee argued that certain transfers made to defendant creditor were preferential pursuant to 11 U.S.C. § 547 and fraudulent pursuant to 11 U.S.C. § 548 and Utah Code Ann. § 25-6-5(1)(b). The parties cross-moved for summary judgment. In addition, third party defendants moved to dismiss, the trustee sought remand, and the trustee moved to strike portions of an affidavit.
Ruling: 
Funds received by creditor to be held in trust were preferential not protected by earmarking doctrine from recovery.
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Consumer case opionion summary, case decided on November 08,2007, LexisNexis #1207-032

Mosier v. Callister Nebeker & McCullough

Plaintiff bankruptcy trustee sued defendants, a law firm and attorneys, alleging negligence, breach of fiduciary duty, vicarious liability, and breach of the covenant of good faith and fair dealing. Eventually, the federal district court consolidated the malpractice action and the bankruptcy case as it related to the malpractice issue. Defendants moved for Fed. R. Civ. P. 56(c) summary judgment, and the parties filed cross-motions to strike.
Ruling: 
Trustee could not use "innocent successor" exception to insulate debtor company from wrongdoing of officers and directors.
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Commercial case opionion summary, case decided on October 09,2007, LexisNexis #1107-028

Darby v. Time Warner Cable Inc. (In re Derby)

Appellant debtor sought review of a judgment in favor of appellee cable provider by the District Court for the Southern District of Texas, which affirmed the bankruptcy court which held that the cable provider was not a utility within the purview of 11 U.S.C. § 366 and was therefore not required to continue providing the debtor service after his offer of adequate assurances.
Ruling: 
District court properly upheld bankruptcy court ruling that cable provider was not a utility and not required to continue debtor's service.
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Cluff v. eCast Settlement

Appellant debtors filed separate bankruptcy cases. Appellee unsecured creditors filed proofs of claim in their respective cases. The debtors filed objections to many of the proofs of claim under 11 U.S.C. § 502(b) and Fed. R. Bankr. P. 3001. The bankruptcy court overruled the debtors'objections. The debtors appealed.
Ruling: 
Proofs of claim that were not prima facie valid were sufficient absent evidence from debtors to rebut merits.
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