Eastern District

Burns v. Farmers State Bank (In re Ragsdel)

Chapter 7 trustee, filed a complaint pursuant to 28 U.S.C.S. § 157(b) against creditors to determine the extent and validity of home liens. The matter was submitted on stipulated facts and letter briefs.
Ruling: 
Lien against property interest created by prepetition deed in to debtor that was not discovered until after discharge was avoidable.
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Consumer case opionion summary, case decided on June 10,2009, LexisNexis #0709-122

Bridges v. Continentalafa Dispensing Co. (In re Continentalafa Dispensing Co.)

Former employee filed a class action adversary proceeding against debtors, his former employers, on behalf of himself and a class of similarly situated former employees of the debtors seeking damages under the Worker Adjustment and Retraining Notification Act (WARN Act) for termination of employment without 60-days advance written notice. The debtors moved to dismiss pursuant to Fed. R. Civ. P. 12(b)(6).
Ruling: 
Prepetition WARN Act claim was not entitled to administrative expense status.
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Commercial case opionion summary, case decided on March 27,2009, LexisNexis #0609-044

Mahler v. Geary (In re Geary)

Creditors, who sold their muffler shop to debtors, sought an order denying the debtors a discharge pursuant to 11 U.S.C.S. § 727(a)(4)(A), asserting that the debtors intentionally failed to schedule or understated the value of a number of vehicles.
Ruling: 
Unintentional misrepresentation regarding value of vehicles was not grounds for denial of discharge.
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Consumer case opionion summary, case decided on March 20,2009, LexisNexis #0609-062

In re Go Fig Inc.

A lessor of chapter 7 debtors filed an application for allowance of an administrative priority claim in connection with a rejected lease. The chapter 7 trustee objected. Two threshold issues were before the court for determination, specifically, whether the limitations in 11 U.S.C.S. § 503(b)(1)(A) applied and whether the trustee had the defense of recoupment to reduce the lessor's allowed claim by the amount of the security deposit.
Ruling: 
Administrative expense claim for lessor's postpetition, prerejection performance was not subject to trustee's recoupment defense.
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Commercial case opionion summary, case decided on February 05,2009, LexisNexis #0509-081

Falcon Creditor Trust v. First Ins. Funding Corp. (In re Falcon Prods. Inc.)

After the Eighth Circuit Bankruptcy Appellate Panel (BAP) reversed its grant of summary judgment in favor of defendant finance company and against plaintiff creditor trust, which had sought to avoid and recover transfers alleged to be preferential per 11 U.S.C.S. § 547, the court, as ordered, considered defenses asserted by the company and the actual effect of the transfers per the Supreme Court's ruling in Palmer Clay Products Co. v. Brown.
Ruling: 
On remand, bankruptcy court reaffirmed that payment on claim that was fully secured at time of transfer was not preferential.
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Commercial case opionion summary, case decided on January 30,2009, LexisNexis #0309-102

Marby v. United States Dept of Educ. Natl Payment Ctr. (In re Marby)

Plaintiff debtor filed an adversary proceeding seeking a determination that the student loan debts he incurred were included in his chapter 7 discharge pursuant to 11 U.S.C.S. § 523(a)(8).
Ruling: 
Homeless and unemployed debtor granted undue hardship discharge of student loan debt.
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Consumer case opionion summary, case decided on November 21,2008, LexisNexis #0109-102

Nuvell Credit Co. v. Callicott (In re Callicott)

The appellant, the creditor holding the loan on appellee debtor's motor vehicle, sought review of an order of the bankruptcy court for the Eastern District of Missouri, that found the creditor held only an unsecured claim for the amount of the debtor's negative equity in her trade-in vehicle, which the creditor had added to the debtor's loan on her newly purchased vehicle, under the hanging paragraph of 11 U.S.C.S. § 1325(a).
Ruling: 
Bankruptcy court properly held that negative equity in "910 vehicle" loan was not included in creditor's purchase money security interest.
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Consumer case opionion summary, case decided on November 12,2008, LexisNexis #1208-086

Radloff v. Ewing (In re Ewing)

Plaintiff, a chapter 7 trustee, filed a complaint to revoke a discharge granted to defendant debtor, or alternatively, for turnover against the debtor. The court held a trial and issued findings of fact and conclusions of law.
Ruling: 
Discharge revoked due to debtor's failure to turn over tax refund to trustee.
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Consumer case opionion summary, case decided on October 28,2008, LexisNexis #0109-070

Tigue v. State Farm Ins. Co.

Plaintiff borrower filed an action against 20 named defendants and 20 unnamed defendants for alleged violations of the federal truth-in-lending and consumer credit statutes relating to a mortgage the borrower has on real property. the borrower sought monetary damages, rescission of the mortgage, and an order that defendants provide the borrower with documents related to foreclosure. In five separate motions defendants filed motions to dismiss.
Ruling: 
Debtor's actions based on prepetition truth-in-lending violations dismissed as belonging to the estate.
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Consumer case opionion summary, case decided on October 22,2008, LexisNexis #1108-098

In re Mierkowski

The court conducted a hearing on the confirmation of the Second Amended chapter 13 plan filed by debtors and the Objection to the Plan filed by a creditor.
Ruling: 
"910 vehicle" claim could not be bifurcated but negative equity portion was not included in purchase money security interest.
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Consumer case opionion summary, case decided on September 29,2008, LexisNexis #0109-089

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