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middle district of tennessee

Sumner Anesthesia Assocs. v. Hubbell

Ruling
District court case dismissed and bankruptcy case reopened to allow estate to pursue claim not previously disclosed.
Procedural posture

Plaintiffs, present shareholders in a professional association, brought a declaratory judgment action against defendants, a former shareholder and his attorneys. Plaintiffs sought summary judgment on the grounds that defendants failed to disclose an underlying state court case when the former shareholder filed for bankruptcy, and defendants had no standing to pursue the state court case. Defendants moved for summary judgment and for sanctions.

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Commercial opinion summary, case decided on December 17, 2009 , LexisNexis #0110-057

Ampharm Inc. v. Samples (In re Samples)

Ruling
Debt owed by LLC of which debtor was sole member was dischargeable with respect to debtor.
Procedural posture

Plaintiff creditor brought an adversary proceeding against defendant bankruptcy debtor seeking a determination that a debt to the creditor from the debtor's limited liability company (LLC) which provided pharmacy services was a nondischargeable debt of the debtor under 11 U.S.C.S. § 523(a)(2) based on the debtor's fraud.

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Consumer opinion summary, case decided on December 11, 2009 , LexisNexis #0110-116

Hyundai Translead Inc. v. Jackson Truck & Trailer Repair Inc.

Ruling
Manufacturer could pursue fraudulent transfer claim against debtor to satisfy unpaid settlement.
Procedural posture

Plaintiff trailer manufacturer sued defendants, dealers, and alleged that the dealers had fraudulently transferred assets to avoid paying a dealer's creditors. The dealers moved for determination and the manufacturer moved to strike.

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Commercial opinion summary, case decided on December 04, 2009 , LexisNexis #1209-139

Nukote Intl Inc. v. Office Depot Inc.

Ruling
Non-core prepetition right of action arising under state law was appropriate for permissive withdrawal.
Procedural posture

Plaintiff manufacturer alleged that as a direct result of the breakdown of its business relationship with defendant retailer the manufacturer was forced to file for chapter 11 bankruptcy protection. The manufacturer filed an adversary proceeding in the bankruptcy court against the retailer and asserted, inter alia, breach of contract and fraudulent and negligent misrepresentation. The retailer moved to withdraw the reference.

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Commercial opinion summary, case decided on November 16, 2009 , LexisNexis #1209-063

In re Santa Fe Holding Co.

Ruling
Debtor's chief restructuring officer's interim fee application, including success fee, approved over objection of United States Trustee.
Procedural posture

The chief restructuring officer (CRO) of bankruptcy debtors assisted in the administration of the debtors' estates and accomplished closing of a sale of 17 of the debtors' 27 restaurants. The CRO applied for interim compensation and the United States Trustee objected to the portion of the fee application that sought a success fee.

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Commercial opinion summary, case decided on November 16, 2009 , LexisNexis #1209-109

Hyundai Translead Inc. v. Jackson Truck & Trailer Repair Inc.

Ruling
Manufacturer's state law, common law and fraudulent transfer claims against involuntary debtor dismissed.
Procedural posture

Plaintiff manufacturer sued defendants, dealerships, their owners, and the chief financial officer (CFO), and asserted claims for fraudulent transfer, conversion, fraudulent and negligent misrepresentation, and successor liability. The manufacturer filed an involuntary chapter 7 bankruptcy petition against one of the dealerships. The court granted derivative standing to the manufacturer. The dealerships, the owners, and the CFO moved to dismiss.

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Commercial opinion summary, case decided on October 29, 2009 , LexisNexis #1209-034

Crim v. First Tenn. Bank (In re Crim)

Ruling
Debtor's recoupment defense under the Truth in Lending Act was property of the estate and could be settled by trustee.
Procedural posture

Debtor challenged two decisions of the bankruptcy court, as well as the bankruptcy court's two subsequent decisions that denied debtor's motions to alter or amend those decisions. Appellee bank opposed debtor's appeal. Among other things, debtor asserted a recoupment defense under the Truth in Lending Act (TILA), 15 U.S.C.S. § 1640. The case also implicated 11 U.S.C.S. § 541(a)(1).

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Consumer opinion summary, case decided on October 28, 2009 , LexisNexis #1209-016

In re Daily

Ruling
Eight-year old state court judgment for misconduct was not grounds for appointment of chapter 11 trustee.
Procedural posture

This matter came before the court upon a judgment creditor's motion to appoint a chapter 11 Trustee. Debtor opposed the motion. The U.S. Trustee stated his position that a chapter 11 Trustee should not be appointed.

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Consumer opinion summary, case decided on October 19, 2009 , LexisNexis #1209-021

Woolsey v. Woolsey (In re Woolsey)

Ruling
Partial summary judgment of nondischargeability of marital dissolution agreement was an appealable final judgment.
Procedural posture

Plaintiff former spouse of defendant bankruptcy debtor brought an adversary proceeding seeking a determination that a debt to the spouse was not dischargeable based on the debtor's fraud and as an obligation under a divorce decree, and that the debtor was not entitled to a discharge. The debtor moved for certification of a partial summary judgment that the debt was a nondischargeable marital obligation as an appealable final judgment.

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Consumer opinion summary, case decided on September 22, 2009 , LexisNexis #1109-029

In re Hatman

Ruling
Debtor provided with opportunity to redeem pawned property.
Procedural posture

A pawnbroker moved for relief from the automatic bankruptcy stay to allow the pawnbroker to sell property pawned by a bankruptcy debtor and not redeemed within the redemption period after the maturity date of the pawn tickets, but the debtor disputed the maturity date of the tickets.

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Consumer opinion summary, case decided on September 01, 2009 , LexisNexis #1009-017