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Judge Sonderby

Kmart Corp. v. Illinois Dept of Revenue (In re Kmart Corp.)

Reorganized debtor sought a declaration of the effects under 11 U.S.C.S. § 346 of its plan of reorganization on its Illinois state income tax liability. The debtor and defendant Illinois Department of Revenue filed cross-motions for summary judgment.
Ruling: 
Bankruptcy court lacked jurisdiction to rule on postconfirmation motion to declare effect of state tax liability.
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Commercial case opionion summary, case decided on May 15,2012, LexisNexis #0612-034

Perto v. Perto

Judgment creditor filed a complaint against defendant debtor to determine dischargeability of the judgment debt pursuant to 11 U.S.C.S. § 523(a)(2) and (a)(6).
Ruling: 
Sale of car to which debtor's father had only mechanic's lien title resulted in nondischargeable debt to owner.
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Consumer case opionion summary, case decided on February 03,2012, LexisNexis #0312-085

Santiago v. Hernandez (In re Hernandez)

Plaintiff creditor had hired defendant, chapter 7 debtor, to perform a home remodeling project. A no-asset report was filed. The creditor claimed that the debt was nondischargeable under 11 U.S.C.S. § 523(a)(2)(A) and the Illinois Consumer Fraud Act, 815 ILCS § 505 et seq.
Ruling: 
Debt incurred in violation of state home improvement act was nondischargeable on grounds of fraud.
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Consumer case opionion summary, case decided on July 25,2011, LexisNexis #0811-119

Zamora v. Jacobs (In re Jacobs)

Plaintiff former employee filed an adversary proceeding against defendant Chapter 7 debtor, seeking a determination that the debtor owed him a debt that was nondischargeable under 11 U.S.C.S. § 523(a)(2)(A), (a)(4), and (a)(6). The employee filed a motion for summary judgment.
Ruling: 
Employee's wage claim was nondischargeable due to debtor's tendering checks drawn on insufficient funds, failure to keep promises to issue new checks and withdrawals from the company's profit-sharing pension plan
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Consumer case opionion summary, case decided on January 25,2011, LexisNexis #0211-117

Swift Fin. v. Sass (In re Sass)

According to plaintiff bank, it suffered damages of $21,426 as a result of defendant debtor's fraudulent actions relating to a loan application. The bank sought a judgment in that amount as well as a declaration that the debt was nondischargeable under 11 U.S.C.S. § 523(a)(2)(A) as one for money obtained by false pretenses, false representations, and actual fraud. Debtor moved to dismiss the amended complaint under Fed. R. Civ. P. 12(b)(6).
Ruling: 
Debtor's oral telephonic statements respecting financial condition could not be basis for nondischargeability.
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Consumer case opionion summary, case decided on December 29,2010, LexisNexis #0211-022

Consumers Coop. Credit Union v. Munson (In re Munson)

Credit union filed an adversary proceeding against defendant chapter 11 debtors, seeking a determination that the debtors owed a debt that was nondischargeable under 11 U.S.C.S. § 523(a)(2)(A), (a)(2)(B), and (a)(6). The debtors filed a motion to dismiss, pursuant to Fed. R. Civ. P. 12(b)(6).
Ruling: 
Failure of debtors to grant security interest in vehicle was not sufficient misrepresentation to establish nondischargeability of debt.
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Consumer case opionion summary, case decided on September 17,2010, LexisNexis #1010-086

Fox v. Continental Airlines Inc. (In re Sage Enters.)

Plaintiff, the chapter 7 trustee, brought a claim for breach of contract against defendant, an airline that obtained supplies and services from the debtor. The trustee sought judgment in the amount of $ 2,510,385.25, plus prejudgment interest, attorney's fees, and court costs. The airline asserted that it had paid the amounts it owed the debtor, that it had paid the debtor's suppliers directly, and that the debtor acted as its agent.
Ruling: 
Judgment granted to trustee in breach of contract action brought on behalf of estate.
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Commercial case opionion summary, case decided on December 31,2009, LexisNexis #0110-136

Structured Asset Serv. LLC v. Carter (In re Carter)

Defendant debtor filed for relief under chapter 7 of the Bankruptcy Code. Plaintiff judgment creditor filed an amended action against the debtor, in part, objecting to the discharge of the debtor, pursuant to 11 U.S.C.S. § 727. The creditor filed an amended motion for summary judgment.
Ruling: 
Discharge denied due to debtor's inability to explain losses sustained after receipt of lump sum lottery payment.
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Consumer case opionion summary, case decided on June 04,2008, LexisNexis #0708-066

Peterson v. Lewis (In re Jenkins)

This matter was before the court after trial on the adversary complaint filed by the chapter 7 trustee of the estate of the debtor seeking, inter alia, to sell both the estate's interest and the interests of her co-owner siblings in certain real property in Chicago, Illinois.
Ruling: 
Trustee was denied authorization to sell property since trustee had not shown that benefit to estate of sale free of interests of debtor's co-owners outweighed any detriment to them.
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In re Kmart Corp.

The court had previously approved plaintiff debtors'motion under 11 U.S.C. § 105(a) for authorization to pay prepetition claims of critical trade vendors (critical vendor order). The Court of Appeals for the Seventh Circuit reversed the critical vendor order. The debtors then filed adversary proceedings against defendants, critical vendors, to recover payments made pursuant to the order. The critical vendors moved to dismiss.
Ruling: 
Court ruled that debtor payments made to critical vendors pursuant to court order, which was later reversed, were not exempted from payment recovery action.
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