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District of kentucky

County of Simpson v. Palma (In re Palma)

Ruling
Former county sheriff's debt to county for failing to account for certain county funds was deemed nondischargeable due to fiduciary defalcation.
Procedural posture

Plaintiff county brought an adversary proceeding against defendant bankruptcy debtor, a former county sheriff, seeking a declaration that a debt to the county for the sheriff's failure to account for county funds was not dischargeable under 11 U.S.C. § 523(a)(4) based on fiduciary defalcation. The bankruptcy court conducted a trial.

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opinion summary, case decided on April 14, 2006 , LexisNexis #0506-051

Brock v. Draper (In re Draper)

Ruling
Trustee was allowed to avoid transfer of debtors'remainder property interest to daughter since badges of fraud under state fraud law were present.
Procedural posture

Plaintiff chapter 7 trustee sued defendant daughter, alleging that a transfer of the debtors'remainder interest in their home and real property for no consideration was a fraudulent conveyance. The trustee moved for summary judgment.

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opinion summary, case decided on April 07, 2006 , LexisNexis #0506-019

Scherer v. Quality Communs. Inc. (In re Quality Communs. Inc.)

Ruling
Trustee was denied motion to amend complaint due to the untimely filing of the motion and the undue prejudice to the defendants.
Procedural posture

Plaintiff chapter 7 trustee asserted claims against defendants under 11 U.S.C. § 548 and 11 U.S.C. § 547. The trustee filed a motion for leave to file an amended complaint.

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opinion summary, case decided on March 29, 2006 , LexisNexis #0406-103

In re Thomas

Ruling
Company being sued by debtors over a lease were granted more time to move to have the state court action removed due to excusable neglect and debtors'lack of disclosure.
Procedural posture

The debtors and an oil and gas company had entered into an oil and gas lease. The debtors had filed suit against the company in state court seeking damages arising out of the oil and gas lease. The company filed a motion for enlargement of time to file a notice of removal of the state court action.

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opinion summary, case decided on March 29, 2006 , LexisNexis #0406-105

In re Bus. Intelligent Sys. LLC

Ruling
Court approved an application for payment of legal fees by the estate's counsel since the fees were actual and necessary.
Procedural posture

Before the court was a Final Application for Approval of Compensation for Services Rendered by debtor's counsel (the firm) during the period July 1, 2003 through June 15, 2005, and the objection of debtor and three individuals thereto.

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opinion summary, case decided on March 29, 2006 , LexisNexis #0406-083

Lexington Coal Co. LLC v. Miller Buckfire LEWIS Ying & Co. LLC (In re HNRC Dissolution Co.)

Ruling
Fee application of bankers were approved since a credit bid was contemplated as included in the fee calculation and thus did not warrant modifying the fee agreement.
Procedural posture

The bankruptcy court ordered the payment of certain administrative fees to appellee, an investment banker retained by debtors, pursuant to the banker's fee application. The fee application sought compensation in the amount of $9.35 million as well as reimbursement of expenses. The bankruptcy court approved the fee application with some adjustments. Appellants challenged the decision.

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opinion summary, case decided on March 22, 2006 , LexisNexis #0406-042

Rawlings v. Tapp (In re Tapp)

Ruling
Creditor failed to demonstrate that the debtor's actions warranted denying a discharge.
Procedural posture

Plaintiff creditor brought an adversary proceeding against defendant bankruptcy debtor, seeking to preclude the debtor's discharge under 11 U.S.C. § 727(a)(2), (3) and (5) based on the debtor's transfer of assets, failure to maintain adequate records, and failure to explain the disposition of a deposit paid to the debtor by the creditor. The bankruptcy court conducted a trial.

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opinion summary, case decided on March 16, 2006 , LexisNexis #0406-024

In re Thermoview Indus.

Ruling
Court abstained from hearing the proceeding since state law issues predominated over bankruptcy issues and the administration of the estate was nearly complete.
Procedural posture

Plaintiff, a guarantor on a loan made to defendant debtor, filed suit in state court seeking reimbursement and/or indemnity from the debtor. The debtor removed the action to the bankruptcy court. The guarantor moved for remand to state court.

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opinion summary, case decided on March 14, 2006 , LexisNexis #0406-031

Goodman v. Parker (In re Parker)

Ruling
Attorney was granted a permanent injunction to stop the debtor from continuing an action against the attorney since the cause of action was estate property and had been sold to the attorney's insurer.
Procedural posture

Plaintiff attorney filed an action against defendant debtor seeking a permanent injunction against the debtor to stop the debtor from continuing to prosecute a state court legal malpractice action asserted against the attorney. In earlier proceedings, the court had issued a preliminary injunction to enjoin prosecution of the state court proceedings.

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opinion summary, case decided on March 07, 2006 , LexisNexis #0406-056

In re Precision Tool Die & Mach. Co.

Ruling
Court granted as reasonable and necessary most of the fee application but reduced as excessive billings for preparing the billing statements.
Procedural posture

Counsel for the official committee of unsecured creditors filed an application for allowance and payment of attorneys' fees and expenses. The debtor objected to the application, asserting that the fees charged were excessive, unreasonable, and disproportionate to the issues involved.

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opinion summary, case decided on February 22, 2006 , LexisNexis #0306-041