Judge Rhodes

In re Collins & Aikman Corp.

A creditor of a chapter 11 debtor filed a motion for allowance of administrative expense pursuant to 11 U.S.C.S. § 503(b), seeking an administrative expense for two groups of invoices.
Ruling: 
Creditor entitled to administrative expense claim for executory contracts not rejected before completion which benefitted estate.
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Commercial case opionion summary, case decided on April 01,2008, LexisNexis #0408-131

In re Sanders

The debtors filed for relief under chapter 13, and submitted a proposed plan. The trustee objected to the plan and requested that the debtors not receive a discharge, pursuant to 11 U.S.C. § 1328(f)(1).
Ruling: 
Debtor not entitled to discharge in chapter 13 case filed within four years of chapter 7 discharge.
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In re Enderle

Bankruptcy debtors assumed a vehicle lease under their confirmed chapter 13 plan, but the debtors subsequently defaulted on the lease. With bankruptcy court approval the lessor sold the vehicle, and the lessor moved for allowance of an administrative claim for the deficiency balance plus attorney fees.
Ruling: 
Creditor lessor was allowed administrative expense for sale of vehicle of which debtor had assumed lease.
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Collins & Aikman Corp. v. Northern Trust Bank of Cal. (In re Collins & Aikman Corp.)

Plaintiffs, corporate debtors, filed a complaint against defendant, the trustee of a grantor trust or "rabbi trust" that the debtors, as employers, established to create a source of funding for otherwise unfunded benefit plans. The complaint sought the turnover of all assets of the trust. The trust beneficiaries moved to intervene claiming they were entitled to the assets of the trust. The debtors moved for summary judgment.
Ruling: 
Debtors were entitled to turnover of "rabbi trust" assets.
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In re Jones

The debtor's attorney filed a fee application requesting approval of fees of $1,917.85 plus costs of $74.33. The bankruptcy court had awarded $500.00 in fees and $74.33 in costs. On appeal, the district court remanded the fee application for determination consistent with the Sixth Circuit's decision in Boddy.
Ruling: 
Attorney was compensated only for those hours reasonably expended to file the case and obtain the stay since the attorney should have advised debtor that filing a chapter 13 plan was not feasible.
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Shapiro v. First Franklin Fin. Corp. (In re Rechis)

Plaintiff chapter 7 trustee filed an adversary proceeding against defendants, creditors, seeking to avoid a mortgage as a preferential transfer. The trustee moved for summary judgment. The debtor amended her schedule to claim an exemption in the underlying real property as property held by the entireties. The trustee objected to the claimed exemption under the doctrine of laches.
Ruling: 
Mortgage was avoided as a preferential transfer since the debtor's effort to exempt the property as entireties property after an 18-month delay was not allowed.
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Yun Zhong Qui v. Ci Qing Zhou (In re Ci Qing Zhou)

Plaintiff judgment creditor brought an adversary proceeding against defendant bankruptcy debtor, seeking a determination that the judgment debt against the debtor for defamation and infliction of emotional distress was not dischargeable under 11 U.S.C. § 523(a)(6) based on the debtor's false accusations that the creditor committed sexual assaults.
Ruling: 
Judgment debt against the debtor for defamation and infliction of emotional distress was dischargeable since the schizophrenic debtor had believed the creditor sexually assaulted her and thus did not act maliciously toward the creditor.
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