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eastern district of wisconsin

Baker v. Muscletech Research & Dev. Inc.

Ruling
Motion to transfer class action case to district court was granted since it was related to bankruptcy case pending in that district court.
Procedural posture

Plaintiff filed a class action complaint in state court, alleging causes of action in false advertising and breach of warranty relating to an ephedra-containing product manufactured by defendant. Defendant manufacturer removed the action, pursuant to 28 U.S.C. § 1452, moved to transfer the case to the district where multidistrict litigation relating to personal injury claims involving defendant's product was pending.

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opinion summary, case decided on June 09, 2006 , LexisNexis #0706-033

United States v. Ross-Tousey (In re Ross-Tousey)

Ruling
Bankruptcy court erred in allowing automobile ownership expense for vehicles not subject to loans.
Procedural posture

Appellant trustee appealed a decision of the bankruptcy court denying the trustee's motion to dismiss the case for abuse, pursuant to 11 U.S.C. § 707(b)(1). Appellees, debtors, opposed. The trustee argued that the bankruptcy court erred in allowing debtors, in calculating their current monthly income, to deduct the automobile ownership expense despite the fact that debtors did not finance their cars and thus had no ownership expense.

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opinion summary, case decided on May 21, 2006 , LexisNexis #0607-112

In re Racette

Ruling
Court denied debtor's motion to strike petition in their prior case since it was properly dismissed, rather than declared a nullity, for failure to comply with section 109(h)(1).
Procedural posture

On April 5, 2006, the court entered an order dismissing the debtors'prior case effective April 4, 2006. The reason for the dismissal was the debtors'failure to comply with the pre- petition credit counseling requirement under 11 U.S.C. § 109(h)(1). Also on April 4, 2006, the debtors filed the instant case. The debtors filed a motion asking the court strike the prior 2006 petition.

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opinion summary, case decided on May 17, 2006 , LexisNexis #0606-037

In re Lue Xiong

Ruling
Trustee was denied turnover of certain property since debtor was entitled to certain exemptions.
Procedural posture

The debtor filed for relief under chapter 7. At the time of the filing, the debtor was married, but his spouse did not join in the proceedings. The trustee filed a motion to compel the turnover of real estate in Kansas, real estate in Wisconsin, a truck, and an automobile, contending that the property was part of the bankruptcy estate pursuant to 11 U.S.C. § 541(a)(2).

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opinion summary, case decided on May 03, 2006 , LexisNexis #0606-020

In re Gilbertson

Ruling
Trustee-retained collection attorney's compensation request was reduced since the contingency fee arrangement was improvident given that the attorney recovered the alleged fraudulent transer quickly and easily.
Procedural posture

In a chapter 7 case, applicant attorney sought compensation as attorney for the trustee.

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opinion summary, case decided on March 29, 2006 , LexisNexis #0406-113

McKloskey v. Schabel (In re Schabel)

Ruling
Court granted summary judgment to the creditors, debtor's parents, by finding that they had asserted the new value defense to an otherwise preferential transfer.
Procedural posture

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditors, the parents of one of the debtors, seeking to avoid an alleged transfer from the debtors as preferential. The parties filed cross-motions for summary judgment.

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opinion summary, case decided on December 23, 2005 , LexisNexis #0306-057

In re Engebregtsen

Ruling
The liquidation value at the time of filing was held to be the valuation method for the creditor's objected-to proof of claim on the lien held on the debtor's pickup truck and was not affected by the debtor's continued unauthorized use of the vehicle.
Procedural posture

Debtors filed a chapter 13 case, and creditor, the holder of a lien in debtors'pickup truck, filed a proof of claim in the total amount of $21,834.72, delineating $20,475 as the secured portion of the claim and $1,359.72 as the unsecured portion. Debtors opposed the creditor's valuation of the vehicle and filed an objection to allowance of the claim.

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opinion summary, case decided on October 13, 2005 , LexisNexis #0306-047