Judge Goldgar

John Hancock Life Ins. Co. v. Litas (In re Litas)

Plaintiff insurance company sued defendant debtor, alleging that a debt resulting from the debtor's misrepresentations was nondischargeable under 11 U.S.C. § 523(a)(2)(A) or (B). The debtor moved to dismiss the complaint for failure to state a claim.
Ruling: 
Motion to dismiss nondischargeability claim was denied despite the complaint having weak allegations of misrepresentations.
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In re Del Monico

With leave of the bankruptcy court, bankruptcy debtors retained counsel to represent them in their chapter 11 case, and counsel's subsequent application for compensation was denied in part for services rendered after a chapter 11 trustee was appointed. Counsel filed an unsecured proof of claim for its denied fees, and the trustee objected to the claim.
Ruling: 
The disallowance of fees as an administrative claim under section 330 for services rendered after a chapter 11 trustee was appointed precluded debtor's counsel from having any further claim for those services.
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OHare Midway Limousine Serv. V. Conroy (In re Conroy)

Plaintiffs, creditors and defendant debtor's former employers, objected to the debtor's discharge under 11 U.S.C. § 727(a)(3) and alleged that the debt was nondischargeable under 11 U.S.C. § 523(a)(4) and (6). The debtor filed a counterclaim for an alleged breach of an agreement. The creditors moved to dismiss the counterclaim and to strike a portion of the counterclaim which was construed as a motion to strike a paragraph in the answer.
Ruling: 
Debtor lacked standing to assert counterclaim since debtor's breach of contract claim accrued prefilng and, thus, was estate property.
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Merritt v. Rizzo (In re Rizzo)

In defendant debtor's chapter 11 proceeding, plaintiff creditor filed an adversary complaint against the debtor alleging that the state court defamation judgment the creditor had obtained against the debtor was non-dischargeable under 11 U.S.C. § 523(a)(6). The matter was tried before the court.
Ruling: 
Court held that a defamation judgment against the debtor was dischargeable since the debtor believed the debtor's statement was true and thus did not inflict a willful and malicious injury.
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