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Southern District

Rieser v. Hayslip (In re Canyon Sys. Corp.)

Plaintiff chapter 7 trustee filed an adversary proceeding against several defendants, who were former investor clients of the debtor, seeking to avoid transfers from the debtor under both 11 U.S.C. § 548 and the Ohio Uniform Fraudulent Transfers Act ("UFTA") (exercising his "strong-arm" powers under 11 U.S.C. § 544(b)). The parties filed cross-motions for partial summary judgment.
Ruling: 
Transfers were deemed avoidable since they were made with actual intent to hinder, delay, or defraud creditors.
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In re Evans

In a chapter 13 bankruptcy case, debtors objected to a proof of claim filed by creditor, a mortgagee. More specifically, they objected to the extent of creditor's claim. The court conducted a hearing on the objection.
Ruling: 
Court sustained debtors' objection to some of a creditor mortgagee's proof of claim for attorneys'fees and costs since the creditor could not make a secured arrearage claim under section 1322(e) if the fees and costs did not first qualify as part of a secured claim under section 506(b).
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Field v. Wells Fargo (In re Bross)

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant mortgagee seeking to avoid a putative mortgage under 11 U.S.C. § 544(a)(3) on the ground that the mortgage was not signed by the bankruptcy debtor as the mortgagor as required by Ohio Rev. Code Ann. § 5301.01. The trustee and the mortgagee cross-moved for summary judgment.
Ruling: 
Trustee was able to avoid a transfer pursuant to section 544(a)(3) since the mortgage was not signed by the debtor and, thus, not fully executed.
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In re Tudor

A bankruptcy debtor's confirmed chapter 13 plan provided for cure of the debtor's mortgage default, and the mortgagee filed a proof of claim for mortgage arrearage. The debtor objected to the mortgagee's claim to the extent that the claim included amounts for attorney fees and costs related to state court foreclosure proceedings.
Ruling: 
Mortgagee was denied an attorneys' fees claim since the Code designated that state law governed the claim and Ohio state law precluded enforcement of the mortgage's attorneys'fee provision.
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In re Smith

A lessor was sanctioned under 11 U.S.C. § 362(h) for violating the automatic bankruptcy stay by unilaterally terminating the farm lease of bankruptcy debtors, but the lessor asserted that the lessor did not know of the bankruptcy and that the debtors'tenancy was terminated prior to the bankruptcy. The lessor moved for relief from the judgment of sanctions.
Ruling: 
Lessor was denied relief from automatic stay violation sanctions since confirmed lease was in place and notice of the bankruptcy was not required.
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In re Burkett

In an adversary proceeding, plaintiff, a chapter 7 trustee, filed an objection to proofs of claim of defendant creditors, requesting disallowance under 11 U.S.C. § 502 primarily because of their failure to attach sufficient supporting documentation to the proofs of claim.
Ruling: 
Court overruled trustee's objection to creditors'lack of supporting documentation in their proofs of claim since they established the validity, ownership, and amount of the claim and there were no factual disputes on the claims.
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U.S. Aeroteam Inc. v. Delphi Automotive Systems LLC (In re United States Aeroteam)

Plaintiff debtor filed for bankruptcy. Defendant creditor filed a motion for relief from the automatic stay in order to exercise a right to setoff under 11 U.S.C. § 553. Plaintiff assignee joined in the action to determine whether its security interest in the debtor's accounts receivable affected the right to setoff. Both the debtor and the creditor filed motions for summary judgment.
Ruling: 
Creditor found to have setoff rights for debt owed more than 90 days before filing, but trial was required to determine creditor's setoff rights for debt owed during 90 days prior to filing.
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