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western district of kentucky

Warner v. Gallimore (In re Gallimore)

Ruling
Objection to discharge overruled in absence of evidence of debtor's intent to defraud.
Procedural posture

Plaintiff creditor filed a complaint objecting to discharge of defendant debtor in connection with plaintiff's claim to recover a $15,000 payment made to defendant on account of defendant's sale of a trailer to plaintiff because the trailer was later impounded for an invalid VIN. Though the debt was alleged to be nondischargeable under both 11 U.S.C.S. § 727(a)(2)(A) and 11 U.S.C.S. § 523, only the § 727 claim was considered at this time.

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Consumer opinion summary, case decided on July 10, 2008 , LexisNexis #0908-053

Dunlap v. Independence Bank (In re Nationwide Tower Co.)

Ruling
Bank's payment with own collateral pursuant to security agreement was not avoidable.
Procedural posture

A chapter 7 trustee filed an adversary proceeding against a bank to avoid transfers made to the bank pursuant to 11 U.S.C.S. § 547 and to recover the transferred property for the estate pursuant to 11 U.S.C.S. § 550. The court held a hearing and issued findings of fact and conclusions of law.

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Commercial opinion summary, case decided on June 16, 2008 , LexisNexis #0708-063

Joel v. United States

Ruling
Revocation of discharge affirmed where debtor admitted to legitimacy of omitted claim.
Procedural posture

Appellant debtor sought review of an order of the bankruptcy court, which revoked a discharge under 11 U.S.C.S. § 727(a)(2)(A), (4)(A) and dismissed his chapter 7 bankruptcy case.

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Consumer opinion summary, case decided on May 19, 2008 , LexisNexis #0608-066

Cadle Co. II Inc. v. Fashion Shop of Ky. Inc.

Ruling
Bankruptcy court properly overruled objection to payments to previously approved consultant.
Procedural posture

Appellant corporation sought review of a decision of a bankruptcy court, which approved a fee application presented by a consultant that was employed by appellee debtor, pursuant to 11 U.S.C.S. § 328.

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Commercial opinion summary, case decided on May 07, 2008 , LexisNexis #0608-071

EEOC v. Daves Detailing Inc.

Ruling
EEOC estopped from seeking damages for sexual harassment on behalf of debtor employees who did not disclose the complaints in their schedules.
Procedural posture

Defendant, a temporary employee staffing company, filed a motion under Fed. R. Civ. P. 12(b)(6) to dismiss certain claims of plaintiff Equal Employment Opportunity Commission (EEOC).

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Commercial opinion summary, case decided on May 02, 2008 , LexisNexis #0608-004

In re Adkins

Ruling
Creditor's attorney's claim for fees in state court action dismissed.
Procedural posture

A debtor objected to the proof of claim filed by a creditor's attorney in the Chapter 13 bankruptcy case.

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Consumer opinion summary, case decided on March 19, 2008 , LexisNexis #0408-071

Harrison v. Harrison (In re Harrison)

Ruling
Money owed to former spouse from sale of mobile home park incurred in connection with divorce decree was nondischargeable.
Procedural posture

Plaintiff ex-wife filed a motion for summary judgment, pursuant to Fed. R. Bankr. P. 7056, in an adversary proceeding seeking a determination that defendant debtor's obligation to pay his ex-wife her share of the sale of marital property was nondischargeable, pursuant to 11 U.S.C.S. § 523(a)(15).

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Consumer opinion summary, case decided on March 19, 2008 , LexisNexis #0408-046

Harrison v. United States Dept of Agriculture Rural Dev. (In re Harrison)

Ruling
Prepetition setoff payment to U.S. Department of Agriculture Rural Development was not preferential.
Procedural posture

Plaintiff debtors filed for relief under chapter 7 of the United States Bankruptcy Code and received a discharge in bankruptcy. The debtors filed an action against defendant, the United States Department of Agriculture Rural Development (RD), claiming that a pre-petition setoff payment to their loan from RD was a preferential transfer that was subject to turnover under 11 U.S.C.S. §§ 522 and 547. The parties sought summary judgment.

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Consumer opinion summary, case decided on March 13, 2008 , LexisNexis #0408-010

Houchens v. United States Dept of Agri. Dev.

Ruling
Department of Agriculture offset of tax refund was not preferential.
Procedural posture

Defendant, the United States Department of Agriculture, Rural Development (RD), filed a motion for summary judgment in plaintiff chapter 7 debtor's action, which sought, pursuant to 11 U.S.C.S. § 522 and § 547, a turnover of a federal income tax refund that had been offset by RD. The debtor filed a cross-motion for summary judgment.

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Consumer opinion summary, case decided on February 05, 2008 , LexisNexis #0308007

Stevens v. Mitchell (In re Mitchell)

Ruling
Judgment against debtors who sent contest winners worthless checks was nondischargeable.
Procedural posture

Plaintiff creditors filed an adversary proceeding against defendant chapter 7 debtor, seeking a judgment declaring that the debtor owed them debts under a state court judgment they obtained against her, and that the debts were nondischargeable under 11 U.S.C. § 523(a)(2) and (a)(6). The creditors filed a motion for summary judgment.

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Consumer opinion summary, case decided on January 18, 2008 , LexisNexis #0208-047