5th Circuit

Magic Lamp L.L.C. v. LeBlanc (In re LeBlanc)

Adversary plaintiff creditor sued for a determination that debtor's liability to it under an outstanding mortgage was nondischargeable under 11 U.S.C. § 523(a)(2) and (a)(6), where debtor had sold the real property before he filed bankruptcy, but had failed to pay off the outstanding balance on the note and mortgage from proceeds of the sale of the mortgaged property. The debtor denied any misconduct on his part.
Ruling: 
Court ruled in favor of creditor that outstanding mortgage liability was nondischargeable but denied creditor's request for attorneys'fees.
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Williamson v. Cent. Miss. Med. Ctr.

Plaintiff, debtor, sued defendants, a hospital, doctors, and corporations, in state court, asserting claims of medical negligence and product liability based upon injuries debtor allegedly sustained during a medical procedure. Debtor moved to abstain and remand the case to the Circuit Court of the First Judicial District of Hinds County, Mississippi. Defendants opposed the motion.
Ruling: 
Debtor's motion for abstention and remand of action back to state court was granted since state court could handle matter timely and would not impede estate's efficient administration.
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In re Johnson

The debtors moved for confirmation of their amended chapter 13 plan. The creditor that held a security interest on the debtors'vehicle filed an objection. The issue was whether the unnumbered, hanging paragraph following 11 U.S.C. § 1325(a)(9) prohibited cramdown under section 1325(a)(5).
Ruling: 
Anti-cramdown provision did not apply to vehicle used by debtor to drive to and from work .
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Cortez v. Cortez (In re Cortez)

Appellant debtors filed a chapter 7 bankruptcy petition. In considering appellee trustee's motion to dismiss for substantial abuse under 11 U.S.C. § 707(b), the bankruptcy court determined that postpetition events should not be considered. The District Court for the Northern District of Texas reversed, holding that such circumstances should be considered. The debtors appealed.
Ruling: 
Court ruled that in determining whether substantial abuse of chapter 7 has occurred, postpetition events should be considered.
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In re Haisley

After the debtor husband and wife filed a joint bankruptcy petition, a creditor filed an ex parte request for an order pursuant to 11 U.S.C. § 362(c)(4)(A)(ii), asking the court to confirm that no automatic stay was in effect because the debtor husband had two bankruptcies dismissed within the year preceding the filing of the pending case.
Ruling: 
Case dismissed as to debtor with two prior bankruptcies but not as to debtor spouse with no prior filings.
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In re Reese

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.
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.
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Catalyst Partners Inc. v. Layton

Defendant debtor filed a motion pursuant to Fed. R. Bankr. P. 7012(b) to dismiss and for judgment, and a motion for more definite statement, in connection with plaintiff former employer's adversary proceeding whereby it sought to have any amounts the debtor owed to the employer as a result of the debtor's breach of a noncompetition agreement declared nondischargeable under 11 U.S.C. § 523(a)(2)(A).
Ruling: 
Violation of non-competition agreement did not create nondischargeable debt.
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Spells v. Spence

In a medical malpractice claim, plaintiff individual sued defendant doctor, hospital, and unknown others, in state court. After defendants learned of the individual's chapter 13 bankruptcy filing, they removed the case to federal court pursuant to 28 U.S.C. § 1452(a). The individual moved to remand the case back to state court.
Ruling: 
Court granted motion to remand state tort claim back to state court since chapter 13 case had been discharged and, thus, federal court did not have bankruptcy jurisdiction.
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Provident Bank v. Merrick (In re Merrick)

Plaintiff creditor filed an adversary proceeding against defendant debtor seeking a determination that its debt was nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(A) and (B). The creditor argued that the debtor obtained money by false pretenses, a false representation, actual fraud and/or use of a materially false statement in writing regarding her financial condition.
Ruling: 
Creditor's nondischargeability claim was dismissed since creditor's reliance on debtor's misrepresentations was not justified.
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First Natl Bank v. Parr (In re Parr)

Plaintiff creditor filed a complaint to determine that the remaining balance of defendant debtor's promissory note was nondischargeable, pursuant to 11 U.S.C. § 523(a)(2)(A), (a)(2)(B) and (a)(4).
Ruling: 
Balance of note owned by officer of debtor car dealership was dischargeable due to creditor's ongoing relationship with debtor and familiarity with financial conditions.
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