Northern District

Wayne Indus. Holdings v. Goro (In re Wayne Engg Corp.)

Plaintiff buyer filed an action against defendants, several businesses and various members of the same family, alleging conversion and intentional interference with its interest in assets it purchased from a chapter 7 corporate debtor. Defendants filed a motion to dismiss the action, claiming that the court lacked jurisdiction to hear the buyer's claims.
Ruling: 
Action by buyer of debtor's assets for conversion and interference was a core proceeding related to debtor's bankruptcy.
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Commercial case opionion summary, case decided on April 17,2008, LexisNexis #0508-035

Wayne Indus. Holdings v. Goro (In re Wayne Engg Corp.)

Plaintiff buyer filed an action against defendants, several businesses and various members of the same family, alleging conversion and intentional interference with its interest in assets it purchased from a chapter 7 corporate debtor. Defendants filed a motion to dismiss the action, claiming that the court lacked jurisdiction to hear the buyer's claims.
Ruling: 
Bankruptcy court had jurisdiction over action by buyer of debtor's asets against debtor's owners and their LLC for conversion of estate assets.
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Commercial case opionion summary, case decided on April 17,2008, LexisNexis #0508-140

Lee v. Spellings (In re Lee)

Plaintiff debtor filed for relief under chapter 7 of the Bankruptcy Code. The debtor filed an action against defendant, the United States Department of Education (DOE), to obtain an undue hardship discharge under 11 U.S.C.S. § 523(a)(8). After a trial, the court issued findings of fact and conclusions of law.
Ruling: 
Debtor with income who had failed to make payments under prior agreement with Department of Education denied undue hardship discharge of student loan debt.
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Consumer case opionion summary, case decided on April 16,2008, LexisNexis #0908-137

In re Blanchard

After an attorney who had been representing a chapter 7 debtor failed to comply with a court order directing her to file an itemized statement of fees and expenses as well as time records relating to debtor's case and after she failed to appear at a subsequent hearing on the same issue, the court notified all parties that it would consider the imposition of sanctions at a new hearing, for which notice was given.
Ruling: 
Debtors' attorney held in contempt and barred from practice before the bankruptcy court due to failure to comply with court orders.
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Consumer case opionion summary, case decided on April 14,2008, LexisNexis #0508-071

Fokkena v. Blackburn (In re Blackburn)

The debtors filed for relief under chapter 7. A United States trustee filed a complaint for a denial of a discharge pursuant to 11 U.S.C.S. § 727(a)(2), (3) and (4)(A). The court held a hearing and issued findings of fact and conclusions of law.
Ruling: 
Failure to disclose existence of two trusts and associated assets resulted in denial of discharge.
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Consumer case opionion summary, case decided on April 03,2008, LexisNexis #0508-137

Schnittjer v. Houston (In re Houston)

Defendant debtor filed for relief under chapter 7 of the Bankruptcy Code. Plaintiff trustee filed an adversary proceeding alleging that a transfer of real estate and certain CRP payments to defendant, debtor's mother, constituted fraudulent transfers. The trustee filed a motion for summary judgment.
Ruling: 
Debtor's transfer of property to mother for less than full value within one year of filing was fraudulent.
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Consumer case opionion summary, case decided on April 02,2008, LexisNexis #0408-116

Johnston v. Fifth Third Bancorp (In re Johnston)

Plaintiff debtor filed for relief under chapter 7 of the United States Bankruptcy Code. The debtor filed an action against defendant creditor, and intervenor creditor joined the proceedings, to determine the dischargeability of the debtor's student loan obligations pursuant to 11 U.S.C.S. § 523(a)(8). The court held a trial and issued findings of fact and conclusions of law.
Ruling: 
Debtor with schizoaffective disorder who failed to complete graduate degree granted undue hardship discharge of student loan debt.
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Consumer case opionion summary, case decided on March 11,2008, LexisNexis #0408-030

Schnittjer v. Pickens (In re Pickens)

Defendant creditor sought reconsideration of a judgment in favor of plaintiff trustee for avoidable preferential payments by the debtors. The creditor sought to reduce the judgment pursuant to 11 U.S.C.S. § 547(c)(4) by the amount of subsequent new value she allegedly granted to the debtors on her credit card.
Ruling: 
New value received from use of charge card could be set off against preferential payments.
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Consumer case opionion summary, case decided on February 05,2008, LexisNexis #0308009

Mitchell v. Bigelow (In re Bigelow)

Plaintiff creditor filed an adversary proceedings against defendant chapter 7 debtor. He asked the court for an order authorizing him to proceed with a claim he had against the debtor in state court or, in the alternative, for an order tolling the state statute of limitations on his claim. The debtor filed a motion to dismiss the creditor's action, pursuant to Fed. R. Civ. P. 12(b)(6).
Ruling: 
Unlisted creditor's action dismissed as statute of limitations which was not tolled during bankruptcy had expired.
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Consumer case opionion summary, case decided on January 22,2008, LexisNexis #0208-067

Schnittjer v. Pickens (In re Pickens)

Plaintiff chapter 7 trustee filed an adversary proceeding against defendants, the parents of one of the debtors, seeking to avoid transfers made to them pursuant to 11 U.S.C. § 547(b). The parents asserted affirmative defenses under 11 U.S.C. § 547(c)(1), (c)(2), (c)(4) and (c)(9).
Ruling: 
Payments to debtor's parent for charges on credit cards were avoidable.
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Consumer case opionion summary, case decided on January 03,2008, LexisNexis #0208-008

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