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southern district of mississippi

In re England Motor Co.

Ruling
Relief from stay granted to the extent creditor bank could set off debtor subsidiary's account against debtor parent's debt.
Procedural posture

Bankruptcy debtors were a parent corporation and two subsidiaries, the parent obtained loans from a bank but did not have an account at the bank, and the subsidiaries had deposit accounts at the bank. The bank moved for relief from the automatic bankruptcy stay to allow the bank to set off amounts deposited in the subsidiaries' accounts against the parent's loan debt to the bank under 11 U.S.C.S. § 553.

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Commercial opinion summary, case decided on January 19, 2010 , LexisNexis #0310-050

Love v. Tyson Foods Inc.

Ruling
EEOC action dismissed as not disclosed in plaintiff's bankruptcy.
Procedural posture

Defendant employer moved for summary judgment in plaintiff employee's action alleging federal claims of race discrimination and retaliation and a state law claim for intentional infliction of emotional distress. The employer urged the court to hold that the employee was judicially estopped from pursuing his claims against the employer as a consequence of failing to disclose those claims to the bankruptcy court in his pending bankruptcy case.

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Consumer opinion summary, case decided on January 07, 2010 , LexisNexis #0210-011

In re Stinson Petroleum Co.

Ruling
Chapter 11 case converted to chapter 7 in best interests of creditors.
Procedural posture

A hearing was held on the court's Order to Show Cause to determine if cause existed for the dismissal or conversion of debtor's bankruptcy case pursuant to 11 U.S.C.S. § 1112(b).

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Commercial opinion summary, case decided on December 16, 2009 , LexisNexis #0210-063

Everitt v. Pneumo Abex LLC

Ruling
Asbestos manufacturer was not covered by automatic stay in co-defendant's case.
Procedural posture

Plaintiffs, who claimed injury from asbestos-containing products, entered into a settlement of their lawsuit with defendant asbestos manufacturer. They alleged the manufacturer breached the settlement agreement and brought an action demanding specific performance of the settlement agreement or damages for its breach. The defendant moved for summary judgment and defendant moved for summary judgment on the questions of contract validity and breach.

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Commercial opinion summary, case decided on December 10, 2009 , LexisNexis #0110-032

In re Davis

Ruling
Special counsel fees approved for attorney representing debtor against criminal charges.
Procedural posture

Movant, an attorney, filed an application requesting approval of his employment as special counsel to defend the debtor against pending felony criminal charges on a flat fee basis for the amount of $ 10,000, as he had contracted with the debtor. The fee was to be paid from the estate.

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Consumer opinion summary, case decided on December 09, 2009 , LexisNexis #0210-040

Atlas v. Chrysler LLC

Ruling
Products liability action transferred to district court where defendant's bankruptcy case was pending.
Procedural posture

Plaintiff, individually, and as administratrix of the deceased's estate, sued defendant car maker and several component parts manufacturers, alleging theories of products liability, negligence, and breach of warranty. The car maker and manufacturer A had filed for bankruptcy in the Southern District of New York. Pursuant to 28 U.S.C.S. § 157(b)(5), manufacturer B moved to transfer venue, and the administratrix moved to remand or to abstain.

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Commercial opinion summary, case decided on December 08, 2009 , LexisNexis #0110-128

Herring v. Parish (In re Parish)

Ruling
Judgment for debtors' willful and malicious failure to maintain ditch which flooded creditor's property was nondischargeable.
Procedural posture

In this adversary proceeding, plaintiff judgment creditors filed a complaint to determine dischargeability of debt pursuant to 11 U.S.C.S. § 523 against defendant debtors.

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Consumer opinion summary, case decided on December 07, 2009 , LexisNexis #0110-056

Shook v. Winn-Dixie Montgomery Leasing LLC

Ruling
Loss of consortium cause of action not disclosed in bankruptcy could be dismissed.
Procedural posture

Plaintiff wife sued defendants, a grocery store and related entities, and alleged a claim on the basis of respondeat superior, negligence, and a claim based on res ipsa loquitur. Plaintiff husband sought damages for loss of consortium. The husband and wife moved for summary judgment on the issue of liability. The store and entities filed a motion for partial summary judgment to preclude the husband's claims based on his bankruptcy discharge.

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Consumer opinion summary, case decided on December 04, 2009 , LexisNexis #1209-122

B.C. Rogers Processors Inc. v. CIT GroupEquip. Fin. Inc. (In re B.C. Rogers Poultry Inc.)

Ruling
Independence of letters of credit from debtors' owners from debtors' agreement with lessor which they secured did not preclude equitable subrogation of owners to rights of debtor after debtor defaulted.
Procedural posture

Plaintiff former owners of bankruptcy debtors brought an adversary proceeding against defendant lessor of the debtors' equipment under a sale/leaseback agreement between the debtors and the lessor alleging that, upon the debtors' default, the lessor improperly drew on the owners' letters of credit and sold the equipment. The lessor moved for summary judgment.

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Commercial opinion summary, case decided on November 16, 2009 , LexisNexis #1209-100

Ramsey v. Countrywide Home Loans Inc. (In re Ramsey)

Ruling
Mortgage claim disallowed given evidence that debtor's signature had been forged.
Procedural posture

Plaintiff debtor brought an adversary complaint against defendant mortgage lender, seeking a declaratory judgment that the latter's deed of trust, on which the debtor asserted that his signature had been forged. If the debtor had not signed the deed of trust, he asserted that the deed of trust was void and unenforceable under Miss. Code Ann. § 89-1-29 (1980).

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Consumer opinion summary, case decided on October 30, 2009 , LexisNexis #1209-041