Southern District

Zanders v. Armstrong Wood Prods.

Plaintiff former employee filed an action against defendant former employer alleging that the employer violated public policy when it terminated him in retaliation for his pursuit of workers' compensation benefits. The employer moved for summary judgment, arguing that the employee, who had filed for bankruptcy after his termination, lacked standing to pursue the claim because it belonged to the bankruptcy trustees under 11 U.S.C.S. § 541(a)(1).
Ruling: 
Chapter 13 debtor's wrongful termination action that was not disclosed in prior chapter 7 case remained property of the chapter 7 estate.
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Consumer case opionion summary, case decided on February 04,2008, LexisNexis #0308030

United States Trustee v. Klages (In re Klages)

Plaintiff U.S. trustee filed a proceeding to revoke the discharge of defendant debtor after the debtor failed to deliver the non-exempt portion of certain tax refunds under 11 U.S.C. § 727(d)(2). Pursuant to 11 U.S.C. § 727(d)(3) and (a)(6)(A), the U.S. Trustee also asserted that the debtor willfully disobeyed court orders to attend debtor's examinations.
Ruling: 
Discharge revoked due to debtor's spending of tax refunds contrary to court orders.
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Shodeen v. Petit (In re Burghoff)

Defendant filed a motion to remove counsel for the chapter 7 trustee as disinterested persons under 11 U.S.C. §§ 327(a) and 101(14)(E).
Ruling: 
Attorneys'representation of creditors prior to being retained by trustee regarding the same alleged fraudulent transfer did not present grounds for disqualification.
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Ahlf v. Ahlf (In re Ahlf)

Plaintiff, defendant debtor's former spouse, filed an adversary proceeding against the debtor seeking a determination that its debt was nondischargeable pursuant to 11 U.S.C. § 523(a)(5) or (a)(15). The debts at issue were a $2,500 attorney fee award from the dissolution decree and a $22,500 property award.
Ruling: 
Property award in favor of former spouse was nondischargeable due to debtor's ability to pay.
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Brokaw v. McSorley (In re McSorley)

Plaintiffs, an individual (creditor) injured by defendant debtor and the parents of that individual, filed an adversary proceeding against the debtor seeking a determination that a debt was nondischargeable pursuant to 11 U.S.C. § 523(a)(6). The creditor's claim stemmed from a personal injury during an altercation that occurred when the creditor and the debtor played on opposing teams during a high school basketball game.
Ruling: 
Claim for willful, malicious injuries inflicted by debtor in high school basketball game was nondischargeable.
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RMJ Leasing Inc. v. Laughlin (In re Laughlin)

Before the court for decision was plaintiff creditor's complaint against defendant debtor seeking a determination of the dischargeability of a portion of its claim, alleging that debtor obtained money from it through fraud in violation of 11 U.S.C. § 523(a)(2).
Ruling: 
Claim was not excepted from discharge on grounds of fraud absent evidence of intent to deceive or creditor reliance.
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Davis v. Rickabaugh (In re Rickabaugh)

Plaintiff judgment creditors commenced an adversary proceeding to determine the dischargeability of a state court judgment against the debtor pursuant to 11 U.S.C. § 523(a) arising from a malpractice action.
Ruling: 
Debt arising from legal malpractice due to inexperience rather than fruad or wilful, malicious conduct was dischargeable.
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Hardin v. Hardin

Plaintiff was the former husband of defendant debtor. He filed a complaint seeking a determination that certain debts owed by the debtor were excepted from discharge pursuant to 11 U.S.C. § 523(a)(15). Plaintiff asserted a nondischargeable claim arising from the parties'decree of dissolution.
Ruling: 
Debt to former spouse was dischargeable where former spousehad substantial income and assets and debtor was struggling.
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Schoppe v. Schoppe (In re Schoppe)

Plaintiff former husband sought a determination that debts owed by defendant debtor were nondischargeable pursuant to 11 U.S.C. § 523(a)(15).
Ruling: 
Debtor's share of marital debt pursuant to divorce decree was excepted from discharge as detriment to former spouse outweighed benefit of discharge to debtor.
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Nelson v. TG Collections (In re Nelson)

Plaintiff debtor filed against defendant creditors an adversary complaint seeking a determination that her student loan debt was dischargeable under 11 U.S.C. § 523(a)(8). The matter was tried to the court.
Ruling: 
Student loan debt was deemed nondischargeable since debtor had sufficient monthly income and stable employment to repay loans.
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