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Felger v. Zaidi (In re Zaidi)

Sep
10
2012
Ruling
Sanctions awarded against judgment creditor attorney for willful filing of baseless nondischargeability proceeding.
Procedural posture

Following an entry of judgment in favor of defendant chapter 7 debtor in a complaint for nondischargeability of debt pursuant to 11 U.S.C.S. § 523(a)(2)(A), the debtor filed a motion for sanctions pursuant to Fed. R. Bankr. P. 9011(b) against plaintiff creditor.

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Consumer opinion summary, case decided on September 10, 2012 , LexisNexis #1012-070
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In re Lopez

Jul
27
2012
Ruling
Debt for state sales tax not paid by debtor's business was nondischargeable.
Procedural posture

Chapter 7 debtor filed an adversary proceeding against defendant, the State of California State Board of Equalization ("SBE"), seeking a determination that a tax liability the SBE assessed under Cal. Rev. & Tax. Code § 6829 was dischargeable under 11 U.S.C.S. § 523(a)(1)(A). The case was tried to the court.

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Consumer opinion summary, case decided on July 27, 2012 , LexisNexis #0912-047
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In re DBI Hous. LLC

Jun
29
2012
Ruling
Claim for attorneys' fees disallowed as disproportionate to likely recovery.
Procedural posture

This matter came on for hearing on debtor's Motion for Order Disallowing Claim. The claimant was a law firm debtor retained prepetition to handle a check cashing related dispute between debtor and a another company and its principal. The claimant had filed a Proof of Claim (POC) in the amount of $30,001 for unpaid attorney's fees.

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Commercial opinion summary, case decided on June 29, 2012 , LexisNexis #0912-115
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Kolsmala v. Autosport Intl Inc.

Apr
23
2012
Ruling
Postpetition purchaser of debtor's race car held in contempt for failure to surrender car.
Procedural posture

Bankruptcy trustee filed an adversary proceeding against a corporation that was placed into chapter 7 bankruptcy, a person who owned the corporation, a person who bought a race car from the corporation's owner, and others, claiming, inter alia, that the car belonged to the corporation's bankruptcy estate and the buyer committed contempt of court. The trustee's claims against the buyer were tried to the court.

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Commercial opinion summary, case decided on April 23, 2012 , LexisNexis #0712-001
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Zaidi v. Felger (In re Zaidi)

Apr
23
2012
Ruling
Judgment for attorneys' fees was dischargeable where debtor had informed attorney of inability to pay but attorney continued to charge fees.
Procedural posture

Attorney filed an adversary proceeding against chapter 7 debtor, seeking a determination that a judgment he obtained in a California court was nondischargeable under 11 U.S.C.S. § 523(a)(2)(A). The debtor opposed the attorney's action and filed a motion seeking sanctions under Fed. R. Bankr. P. 9011. The case was tried to the court.

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Consumer opinion summary, case decided on April 23, 2012 , LexisNexis #0712-020
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