Judge Goldgar

One-on-One Fitness Pers. Training Servs. V. Reyes (In re Reyes)

Plaintiff creditor brought an adversary proceeding against defendant bankruptcy debtor, who was a personal fitness trainer under contract with the creditor, alleging that a judgment debt to the creditor arising from the debtor's diversion of the creditor's clients was nondischargeable under 11 U.S.C.S. § 523(a) based on the debtor's fraud and willful and malicious injury. The debtor moved to dismiss the complaint.
Ruling: 
Judgment debt for debtor personal trainer's diversion of creditor's clients was not a debt for money or property obtained by fraud and was dischargeable.
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Commercial case opionion summary, case decided on July 13,2010, LexisNexis #0910-118

Maxwell v. Novell Inc. (In re matchFirst Inc.)

Plaintiff, a chapter 7 trustee, moved for judgment on the pleadings on an adversary complaint against defendant creditor which sought an order per 11 U.S.C.S. § 510(b) subordinating defendant's claim for $100 million in "damages" in connection with a failed business venture with debtor. At issue was whether the claim concerned a purchase of debtor's stock or was one for damages for breach of underlying agreements with debtor.
Ruling: 
Claim for fraud in stock purchase subordinated.
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Commercial case opionion summary, case decided on June 23,2010, LexisNexis #0910-068

CLC Creditors Grantor Trust v. Howard Savings Bank (In re Commercial. Loan Corp.)

Creditors' trust brought an adversary proceeding against defendant transferees of funds from a bankruptcy debtor alleging that the transfer of funds to the transferees as payment for stock in the debtor constituted an avoidable fraudulent transfer. The transferees admitted that the transfer was constructively fraudulent but asserted a defense under 11 U.S.C.S. § 550(b)(1) based on taking the transfer in good faith.
Ruling: 
Constructively fraudulent transfer for value accepted in good faith was not avoidable.
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Commercial case opionion summary, case decided on April 29,2010, LexisNexis #0710-035

In re Adams

A chapter 7 trustee filed a motion under 11 U.S.C.S. § 363(b) for leave to sell the estate's interest in a limited liability company (LLC). The debtors objected to the motion.
Ruling: 
Debtor whose liabilities exceeded assets lacked standing to object to sale of interest in LLC.
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Consumer case opionion summary, case decided on March 12,2010, LexisNexis #0510-044

In re Letourneau

The court held a hearing requiring an alleged chapter 7 debtor to show cause why he should not be sanctioned for violating Fed. R. Bankr. P. 9011(b)(1) by filing an involuntary bankruptcy case against himself.
Ruling: 
Chapter 7 debtor sanctioned for filing involuntary case against himself.
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Consumer case opionion summary, case decided on February 04,2010, LexisNexis #0310-104

In re Jackson

Following an evidentiary hearing under 11 U.S.C.S. § 329(b) for the purpose of examining the attorney's fees paid to debtor's counsel in two separate chapter 13 proceedings.
Ruling: 
Attorneys' fees ordered disgorged due to filing of false disclosure statements in two chapter 13 cases.
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Consumer case opionion summary, case decided on February 27,2009, LexisNexis #0409-072

In re Ulz

Debtor filed a petition under chapter 7 of the Bankruptcy Code, and a mortgage broker filed a claim against the debtor's bankruptcy estate after it received assignment of a judgment which a lender obtained against the debtor and the broker in federal district court. The debtor and two other creditors filed an objection to the broker's claim, arguing that it had to be disallowed because the assignment was unenforceable.
Ruling: 
Mortgage broker's claims disallowed as assignment of judgment from lender was unenforceable under state law.
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Consumer case opionion summary, case decided on January 30,2009, LexisNexis #0309-044

CLC Creditors Grantor Trust v. Howard Savings Bank (In re Commercial Loan Corp.)

Debtor, a loan corporation, filed a petition under chapter 11 of the Bankruptcy Code, and a trustee was appointed to represent the bankruptcy estate. The court confirmed the creditors' Second Amended Plan of Liquidation, which provided for the creation of plaintiff trust, and the trust filed an adversary proceeding against defendant banks, seeking an order avoiding transfers the debtor made to the banks. The banks moved for summary judgment.
Ruling: 
Prepetition transfers to banks were not avoidable due to debtor's fraudulent purchase of stock from those banks.
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Commercial case opionion summary, case decided on November 19,2008, LexisNexis #0209-067

Linnemann v. Post (In re Mission Bay Ski & Bike Inc.)

Debtor corporation defaulted on a note and filed for chapter 11. Plaintiffs purchased the note from the lender. Defendant signed an agreement guaranteeing payments under the note. Plaintiffs sued defendant in state court. Defendant removed the action to the bankruptcy court under 28 U.S.C.S. § 1452 and Fed. R. Bankr. P. 9027. Plaintiffs moved to remand, arguing the bankruptcy court lacked subject matter jurisdiction under 28 U.S.C.S. § 1334(b).
Ruling: 
Action for breach of guarantee agreement that could reduce claims against estate was "related to" debtor's bankruptcy.
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Commercial case opionion summary, case decided on October 15,2008, LexisNexis #0209-062

In re Cramer

Before the court for ruling in this chapter 7 case was debtors' motion to avoid a plumbing company's mechanic's lien pursuant to 11 U.S.C.S. § 522(h).
Ruling: 
Debtor's motion to avoid mechanics lien denied for failure to establish that lien was invalid.
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Consumer case opionion summary, case decided on September 12,2008, LexisNexis #1008-117

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