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In re Jack Kline Co.

Ruling
Oversecured creditor could not retain proceeds of sale of debtor's property to cover attorneys' fees and interest for which creditor did not seek approval.
Procedural posture

Upon a sale of a bankruptcy debtor's real property, a creditor which was over-secured by the property retained proceeds of the sale to the extent of the amount of the creditor's lien plus postpetition attorney fees and postpetition interest at a default rate. The bankruptcy trustee moved to surcharge the creditor for expenses of the sale and objected to allowance of the creditor's claim for postpetition fees and interest.

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Commercial opinion summary, case decided on September 30, 2010 , LexisNexis #1110-115

In re Demay Intl LLC

Ruling
Creditor held a secured claim in proceeds of sale of electrical equipment pursuant to originally perfected mechanics' lien.
Procedural posture

Debtor filed a petition under chapter 11 of the Bankruptcy Code and claimant, a company that sold electrical equipment, filed a secured claim in the amount $ 337,279 against the debtor's bankruptcy estate. The debtor filed an objection to the claim, arguing that the claim should be disallowed as a secure claim. The court allowed the debtor's largest creditor to join the debtor's objection, and the creditor filed a motion for summary judgment.

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Commercial opinion summary, case decided on June 09, 2010 , LexisNexis #0810-080

In re Lots by Murphy Inc.

Ruling
Case dismissed as filed in bad faith where debtor was ineligible for discharge and had no assets to liquidate.
Procedural posture

A trustee and an interested party filed a motion to dismiss a chapter 7 debtor's bankruptcy petition pursuant to 11 U.S.C.S. § 707(a) on the grounds that it was filed in bad faith. The debtor opposed the motion.

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Commercial opinion summary, case decided on March 22, 2010 , LexisNexis #0610-099

In re Bigler LP

Ruling
Retention of banking firm as financial advisor approved over objection of official committee of unsecured creditors.
Procedural posture

The chapter 11 debtors filed an application under 11 U.S.C.S. §§ 327 and 330 for interim and final orders authorizing the debtors to retain and employ an investment banking firm as a financial advisor. The official committee of secured creditors and three other secured creditors objected to the investment banking firm's insistence on a "tail period" provision.

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Commercial opinion summary, case decided on February 09, 2010 , LexisNexis #0410-004

Wallace v. Perry (In re Perry)

Ruling
Damages for breach of contract and defamation were nondischargeable.
Procedural posture

Plaintiffs, a mayor, a former partner, and two trusts, filed an adversary proceeding against defendant chapter 11 debtor, seeking a judgment that the debtor committed breach of contract and defamation, and a determination that damages the debtor owed were nondischargeable under 11 U.S.C.S. § 523(a)(2), (4), and (6). The court struck plaintiffs' claims under § 523(a)(2) and (4) because of discovery misconduct, and tried plaintiffs' other claims.

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Consumer opinion summary, case decided on February 03, 2010 , LexisNexis #0410-014

In re Energy Partners Ltd.

Ruling
Creditor entitled to administrative expense for legal fees and expenses due to substantial contribution to case.
Procedural posture

In this chapter 11 case, a creditor sought reimbursement of legal fees and expenses in the amount of $ 61,480 pursuant to 11 U.S.C.S. §§ 503(b)(3)(D) and (b)(4). The debtor objected to the request on the sole ground that the creditor did not provide a substantial contribution to the case as required by 11 U.S.C.S. § 503(b)(3)(D).

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Commercial opinion summary, case decided on December 31, 2009 , LexisNexis #0210-008

Hernandez v. Argent Sec. Inc. (In re Hernandez)

Ruling
Debtor's objections to mortgagee's claim overruled.
Procedural posture

Plaintiff bankruptcy debtor brought an adversary proceeding against defendants, a putative holder of the debtor's mortgage loan and the loan servicer, alleging that the servicer lacked standing to file a proof of claim based on the mortgage note, that the alleged postpetition assignment of the note was invalid, and that the debtor was fraudulently induced into executing the note. The defendants moved to dismiss the complaint.

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Consumer opinion summary, case decided on December 07, 2009 , LexisNexis #0110-011

In re Gilbreath

Ruling
Creditor LLC's proofs of claim disallowed due to insufficient reporting information.
Procedural posture

Debtors filed a petition under chapter 13 of the Bankruptcy Code and an LLC filed claims against the debtor's bankruptcy estate, seeking payment of unsecured credit card debt the debtors allegedly owed. The debtors filed objections to the LLC's claims.

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Consumer opinion summary, case decided on November 19, 2009 , LexisNexis #0110-010

In re Royce Homes LP

Ruling
Debtor's representative ordered to locate and turn over documents required by trustee.
Procedural posture

Chapter 7 trustee filed a motion to compel the representative of the debtor to turn over several documents and other information regarding the debtor's bankruptcy estate.

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Commercial opinion summary, case decided on September 23, 2009 , LexisNexis #1109-014

In re Las Torres Dev. LLC

Ruling
Debtor shopping center could use cash collateral to pay administrative expenses but debtor developer in jointly administered case could not.
Procedural posture

The debtors a jointly administered chapter 11 cases requested permission to use the cash collateral of one of the debtors--consisting solely of rental income--to pay both debtors' continuing obligations during the pendency of their respective bankruptcy cases pursuant to 11 U.S.C.S. § 363. A secured creditor objected to their request.

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Commercial opinion summary, case decided on September 17, 2009 , LexisNexis #1109-008