Western District

Tyson v. Hunt (In re Tyson)

Plaintiff bankruptcy debtor brought an adversary proceeding against defendants, the United States and a purchaser, alleging that the government violated the automatic bankruptcy stay of 11 U.S.C.S. § 362 by a postpetition foreclosure against the debtor's property, and that the purchaser of the debtor's property at the sale violated the stay by refusing to acknowledge the invalidity of the sale. The debtor moved for summary judgment.
Ruling: 
Government violated stay by proceeding with postpetition foreclosure sale as did purchaser by recording deed.
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Consumer case opionion summary, case decided on June 07,2011, LexisNexis #0611-110

In re Village Green I GP

A chapter 11 debtor filed a motion to authorize use of cash collateral pursuant to 11 U.S.C.S. §§ 363 and 361, to grant adequate protection pursuant to 11 U.S.C.S. §§ 363 and 361, and to schedule a final hearing pursuant to Fed. R. Bankr. P. 4001(c). A creditor file a motion for relief from the automatic stay pursuant to 11 U.S.C.S. § 362(d)(2). The debtor objected.
Ruling: 
Collected rents were property of the estate and eligible as cash collateral.
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Commercial case opionion summary, case decided on July 29,2010, LexisNexis #1010-093

In re Morris

The court conducted a hearing on a creditor's motion to lift stay, Fed. R. Bankr. P. 9014. Debtor opposed the motion.
Ruling: 
Creditor could seek to recover damages for personal injury from debtor's insurer without violating discharge injunction.
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Consumer case opionion summary, case decided on June 07,2010, LexisNexis #0810-123

Clarke v UPS Inc.

Plaintiff employee filed a bankruptcy petition. Almost four years later, the employee sued defendant employer and alleged violation of 42 U.S.C.S. § 2000e et seq., 42 U.S.C.S. § 1981 and 42 U.S.C.S. § 12101 et seq. The employee did not amend her bankruptcy schedules. The employer moved to dismiss the complaint based upon judicial estoppel. A magistrate recommended that the motion to dismiss be granted. The employee objected.
Ruling: 
Employment discrimination case dismissed as not disclosed by debtor employee in bankruptcy.
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Consumer case opionion summary, case decided on January 15,2010, LexisNexis #0210-069

Cook v. Department of Safety of Tenn. (In re Cook)

Plaintiff debtors filed an expedited motion for contempt against defendants, the State of Tennessee Department of Safety and the Jackson Metro Narcotics Unit. Pursuant to the motion, debtors sought immediate turnover of a vehicle, monetary sanctions, compensatory damages, and an award of attorneys fees and costs against defendants. At the hearing, defendants sought dismissal of the underlying adversary proceeding.
Ruling: 
Motion for contempt for failure to comply with turnover order denied where service was improper.
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Consumer case opionion summary, case decided on December 14,2009, LexisNexis #0110-105

In re Hurricane Memphis LLC

The debtor moved to sell personal property to the surviving reorganized debtor, and for approval of its assumption of the sublease of the premises on which it proposed to operate a night club. Objections to the debtor's motions were filed by creditors, the landlord of the real property, the county tax authority, and a primary lender; they also filed objections to confirmation of the debtor's proposed amended chapter 11 plan.
Ruling: 
Confirmation denied due to speculative nature of debtor's proposal to assume sublease and open nightclub.
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Commercial case opionion summary, case decided on June 10,2009, LexisNexis #0809-091

Clippard v. Bass

Appellant United States Trustee sought review of an order from the bankruptcy court, which granted appellee chapter 7 debtor's motion to extend time for the credit counseling required under 11 U.S.C. § 109(h)(1) and which denied the trustee's motion to dismiss the debtor's bankruptcy case.
Ruling: 
Extension of time to comply with credit counseling requirement reversed and case dismissed due to lack of exigent circumstances.
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Brooks v. Stevenson (In re Brooks)

Movants, the debtor and his non-debtor wife, sought an order requiring respondent chapter 7 trustee to abandon his interest in certain funds paid over to him by creditors. These funds were obtained by the creditors as the result of a writ of garnishment. The trustee demanded that the funds be paid over to him because they represented a preferential transfer to the creditors.
Ruling: 
Trustee could retain funds recovered from other creditors that debor claimed were not estate property.
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Winters v. United States (In re Winters)

Plaintiff debtor brought an adversary claim seeking the discharge of a civil judgment and related obligations entered against him in favor of defendant United States, based upon violations of the False Claims Act, 31 U.S.C. §§ 3729–33. The Government moved for summary judgment of nondischargeability under 11 U.S.C. § 523. The Government had failed to timely file a complaint under 11 U.S.C. § 523(c).
Ruling: 
Civil penalty under False Claims Act was nondischargeable but punitive damages and fees were dischargeable due to failure of U.S. Government to filed adversary proceeding.
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MacDonald v. Greenwood (In re MacDonald)

Appeals were filed from three decisions of the bankruptcy court. Two of the bankruptcy court's judges held that improperly venued bankruptcy cases were to be transferred or dismissed, and the third judge held that an improperly venued bankruptcy case could be retained if the interests of justice and the convenience of the parties so required.
Ruling: 
Bankruptcy cases brought in improper venue must be either dismissed or transferred to a venue where the case could have been properly brought.
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