Judge Cox

In re Lancelot Investors Fund LP

Debtors filed for bankruptcy protection under chapter 7 of the Bankruptcy Code after an alleged Ponzi scheme was uncovered. Defendants, a family trust and others, filed a complaint against a partnership, which provided auditing and financial services to the debtors, in the Fourth Judicial District of Hennepin County District Court in Minnesota. Plaintiff trustee moved for a preliminary injunction staying defendants' lawsuit.
Ruling: 
Action by investors in debtor's alleged Ponzi scheme stayed due tot substantial overlap with efforts of trustee.
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Commercial case opionion summary, case decided on July 17,2009, LexisNexis #0809-072

Wellness Intl Network v. JPMorgan Chase Bank (In re Sharif)

In adversary proceedings, respondents, individual litigants and a bankruptcy debtor, sought to remove two actions filed by petitioner corporation--a garnishment action from Texas state court and a collection proceeding filed in the U.S. District Court for the Northern District of Texas-- to make them part of respondent debtor's bankruptcy case. Movants. the corporation and two other litigants, requested that the notices of removal be dismissed.
Ruling: 
There is no legal authority to "remove" a district court case to bankruptcy court.
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Consumer case opionion summary, case decided on July 02,2009, LexisNexis #0809-096

In re Lunkes

Before the court was the objection of the chapter 7 trustee to an exemption claimed by debtor in his interest in a trust.
Ruling: 
Debtor could not claim exemption in trust that was not a spendthrift trust according to its language.
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Consumer case opionion summary, case decided on July 02,2009, LexisNexis #0809-048

In re Orvis Enters.

Movant chapter 11 debtor filed a motion under 11 U.S.C.S. § 365 to reject a lease to the extent that the lease remained unexpired. Respondents, a lessee and an assignee, opposed the motion.
Ruling: 
Option to purchase was not executory contract where debtor lessor breached lease prepetition by refusing to honor the option.
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Commercial case opionion summary, case decided on January 08,2009, LexisNexis #0209-042

In re Teknek LLC

The chapter 7 trustee applied to employ an attorney and his law firm A judgment creditor of the debtor, and several persons or entities associated with the debtor filed objections to the employment of the attorney. The attorney had previously represented the judgment creditor in litigation against various parties related to the debtor, and the trustee sought to employ him to litigate against those same parties in an unrelated adversary action.
Ruling: 
Attorney who had represented estate's primary creditor could not be employed by trustee due to potential conflict of interest.
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Commercial case opionion summary, case decided on October 20,2008, LexisNexis #1208-060

In re Teknek LLC

A debtor filed for relief under chapter 7 of the Bankruptcy Code. Several interested parties associated with the bankruptcy proceedings objected to the application of a Chapter 7 trustee to employ an attorney and his law firm.
Ruling: 
Trustee's application to employ attorney denied as attorney had conflict with primary creditor and was not disinterested.
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Commercial case opionion summary, case decided on October 17,2008, LexisNexis #1108-095

In re Marks

Debtor filed a petition under chapter 13 of the Bankruptcy Code and a plan for repaying her creditors. A secured creditor filed an objection to the debtor's plan.
Ruling: 
Creditor's objection to debtors plan for failing to make payments sufficient for adequate protection sustained and attorneys fees awarded pursuant to contract.
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Consumer case opionion summary, case decided on September 25,2008, LexisNexis #1008-129

In re Dugar

A creditor filed a proof of claim in debtors' chapter 13 bankruptcy case based on a state court action alleging a breach of contract. The debtors objected to the claim.
Ruling: 
Debtor's objection to breach of contract claim sustained.
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Consumer case opionion summary, case decided on August 19,2008, LexisNexis #1008-114

Official Unsecured Creditors Comm. of Hearthside Baking Co. v. Cohen (In re Hearthside Baking Co. Inc.)

Plaintiffs, the unsecured creditors' committee for the debtor, intervened in a state court matter and had the matter removed to proceed in the court as an adversary proceeding. The committee filed an additional adversary proceeding and sought consolidation. Defendant trustees filed a motion for the court to abstain from going forward in the first adversary proceeding, pursuant to 28 U.S.C.S. § 1334, and to remand the matter to state court.
Ruling: 
Action for accounting and removal of debtor's CEO and trustee was "related to" debtor's bankruptcy and not suitable for abstention.
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Commercial case opionion summary, case decided on August 04,2008, LexisNexis #1208-131

Arlow v. F.A.Y. Props. (In re Mid-City Parking Inc.)

Plaintiff trustee filed an adversary complaint pursuant to 11 U.S.C. § 550 against defendant lessor in connection with five transfers made to it by debtor parking lot operator that were claimed to be preferential within the meaning of 11 U.S.C. § 547. Three of the claims were resolved prior to trial, at which the court heard evidence on the remaining claims and on defendant's ordinary course of business defense under 11 U.S.C. § 547(c)(2).
Ruling: 
Transfers made per a validly assumed executory contract were not preferential.
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Commercial case opionion summary, case decided on December 27,2007, LexisNexis #0208-026

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