In re Wool Growers Cent. Storage Co.
Jul
19
2007
Ruling
Plan confirmation denied due to non-consnsual release of debtor's directors from liablity to creditors in exchange for contributions.
Procedural posture
A corporate bankruptcy debtor's chapter 11 reorganization plan provided that, in exchange for a contribution of funds by the debtor's directors, claims of creditors against the directors, both individually and as board members, were released. Certain unsecured creditors objected to confirmation of the plan on the ground that the release was improper.
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Court
:
In re Marble
May
25
2007
Ruling
Attorney who was trustee of spendthrift trust of which debtor was beneficiary was not disqualified from representing debtor.
Procedural posture
Debtors filed a petition under chapter 11. An attorney they hired to represent them filed a motion to approve his employment and the employment of his law firm, and the trustee in bankruptcy filed an objection to the motion, suggesting that the attorney and his law firm had a conflict of interest and did not satisfy the requirements of 11 U.S.C. § 327(a).
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Court
:
In re Paige
Mar
28
2007
Ruling
Debtor sanctioned for unauthorized sale of four classic cars without trustee's knowledge or consent.
Procedural posture
A chapter 7 trustee filed a motion to sanction the debtor for his unauthorized taking and selling of four classic cars without the trustee's knowledge or consent. The trustee requested a constructive trust.
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Court
:
In re Jarrell
Mar
09
2007
Ruling
Debtor's incapacity due to mental illness justified waiver of credit counseling requirement.
Procedural posture
The debtor filed for relief under chapter 7 and sought exemption from the requirement of prepetition credit counseling. The creditor filed a motion to dismiss the petition for abuse, pursuant to 11 U.S.C. § 707(b).
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Court
:
- 11 U.S.C.
LVR Carpet Center Inc. v. Coley (In re Coley)
Nov
28
2006
Ruling
Detbors' failure to use fire insurance proceeds to pay repairing contractor was fiduciary defalcation rendering debt nondischargeable.
Procedural posture
Plaintiff contractor brought an adversary proceeding against defendant bankruptcy debtor, seeking a determination that a debt to the contractor was not dischargeable under 11 U.S.C. § 523(a)(4) based on the debtor's fiduciary defalcation in misapplying construction funds. The bankruptcy court conducted a trial concerning the amount of funds misapplied by the debtor.
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Court
:
In re Supreme Beef Processors Inc.
Oct
19
2006
Ruling
Waiver of sovereign immunity could not be used to create a cause of action that did not exist outside of bankruptcy.
Procedural posture
The District Court for the Eastern District of Texas dismissed the debtor's tort claims against the creditor United States Department of Agriculture as barred by sovereign immunity. On the debtor's appeal, a panel of the Fifth Circuit held that permissive counterclaims could be used as a setoff under 11 U.S.C. § 106(c) as a waiver of sovereign immunity. The case was reconsidered en banc.
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In re Reese
Jul
11
2006
Ruling
Debtor's motion to accept executory contracts for sale of properties free of liens and over wife's objections since sales were fair and reasonable and in best interests of estate and creditors.
Procedural posture
Movant debtor filed a motion for authority to accept executory contracts for the sale of real and personal property and to sell real and personal property free and clear of liens pursuant to 11 U.S.C. § 363(b), a motion to approve an agreed order for the use of cash collateral, and a motion for authority to obtain secured credit under 11. U.S.C. § 364(b)(1). Respondent wife objected to the first two motions.
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Court
:
- 11 U.S.C.
Green v. Sirmons (In re Sirmons)
Apr
27
2006
Ruling
Court denied debtor's former wife's request to deny dischargeability for the trade-in value the debtor received on a truck since the court found no trust or fiduciary relationship or fraud.
Procedural posture
Plaintiff former wife filed a complaint seeking a determination that defendant debtor's obligation to pay her the trade-in value of a truck was nondischargeable under 11 U.S.C. § 523(a)(4).
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Court
:
- 11 U.S.C.
Sec. Bank v. Rodriguez (In re Rodriguez)
Feb
15
2006
Ruling
Bank was denied summary judgment since the debtor's alleged fraudulent intent was at issue.
Procedural posture
Plaintiff bank filed an adversary proceeding against defendant debtor, claiming that the debtor's obligation to the bank should be declared nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(A) and (B). The bank filed a motion for summary judgment.
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Court
:
- 11 U.S.C.
G.H. Leidenheimer Baking Co. v. Sharp (In re SGSM Acquisition Co. LLC)
Feb
06
2006
Ruling
Payments made to the debtor's suppliers during the preference period were avoidable transfers since they were not made in the ordinary course of business subject to a portion of the payments not being preferential since subsequent new value was provided.
Procedural posture
Appellant suppliers brought a consolidated appeal from the district court, challenging the lower courts'treatment of preference payments each received from debtor grocery store chain before it filed bankruptcy.
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