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northern district of california

Neighbors v. Mortgage Elec. Registration Sys.

Ruling
Debtor's action against mortgage lender dismissed as not properly disclosed in bankruptcy.
Procedural posture

Plaintiff debtor filed an action against defendants, a mortgage lender and a nominee beneficiary, alleging 11 claims for relief arising from the debtor's purchase of a home, default on a mortgage, and foreclosure proceedings. Defendants filed a motion to dismiss the action.

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Consumer opinion summary, case decided on January 27, 2009 , LexisNexis #0209-113

Suarez v. Barrett (In re Suarez)

Ruling
Civil contempt judgment that debtor did not contest was based on willful and malicious conduct and properly held nondischargeable.
Procedural posture

Appellant, a chapter 7 debtor, sought review of a decision of the Bankruptcy Court for the Southern District of California, which entered a judgment of nondischargeability under 11 U.S.C.S. § 523(a)(6) for an obligation owed to appellee creditor pursuant to a state court civil contempt proceeding.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on January 16, 2009 , LexisNexis #0409-028

3dfx Interactive v. aVidia Corp. (In re 3dfx Interactive)

Ruling
Committee could not seek to assume "executory" contract after trustee had prosecuted a claim against the contracting party.
Procedural posture

Plaintiff, the official committee of equity security holders of the debtor, brought claims against defendant a party which had contracted with the debtor, seeking to assume the allegedly executory contract and enforce it in conjunction with confirmation of the debtor's plan. The contracting party asserted that the contract was not executory and that the claim was time-barred. The parties filed cross-motions for summary judgment.

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Commercial opinion summary, case decided on January 06, 2009 , LexisNexis #0309-097

Stickrath v. Globalstar Inc.

Ruling
Claims reasonably within consumer's contemplation prior to debtor corporation's discharge order were discharged.
Procedural posture

Plaintiff consumer sued defendant corporation under Cal. Bus. & Prof. Code § 17200 et seq., and Cal. Civ. Code § 1750 et seq., and alleged that its failure to disclose known defects in its service prevented him from using the service as intended. The consumer sought to represent a nationwide class of individuals who purchased a satellite telephone from the corporation between April 2003 and 2007. The corporation moved for summary judgment.

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Commercial opinion summary, case decided on December 22, 2008 , LexisNexis #0209-022

Rollins v. Neilson (In re Cedar Funding Inc.)

Ruling
Bankruptcy court refused to dismiss complaint of investors seeking judicial declaration of an equitable or legal interest in debtor's property.
Procedural posture

Plaintiffs, investors in a second deed of trust created through the debtor on a third party's real property, filed an adversary proceeding requesting a judicial declaration that they had either an equitable or a legal interest in the note and deed of trust securing repayment. Defendant, the chapter 11 trustee, moved to dismiss the complaint, asserting the interest was subject to avoidance as a preferential transfer under 11 U.S.C.S. § 547(b).

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Commercial opinion summary, case decided on October 30, 2008 , LexisNexis #0209-120

ATR-Kim Eng Fin. Corp. v. Bonilla

Ruling
Bankruptcy court properly held debt arising from fiduciary's failure to prevent majority shareholder and director from looting corporation was nondischargeable.
Procedural posture

Appellant chapter 7 debtor challenged a decision of the United States Bankruptcy Court for the Northern District of California, which held that the debt arising from the debtor's breach of fiduciary duties as a Delaware corporate director was nondischargeable under 11 U.S.C.S. § 523(a)(4).

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Consumer opinion summary, case decided on September 25, 2008 , LexisNexis #1108-043

In re Greg James Ventures LLC

Ruling
Chapter 11 plan with ten year term confirmed as reasonable over creditor's objection.
Procedural posture

A creditor filed an objection to confirmation of the debtor's proposed chapter 11 plan.

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Commercial opinion summary, case decided on September 24, 2008 , LexisNexis #1208-048

In re Brooks-Hamilton

Ruling
Bankruptcy court reaffirmed six month suspension of attorney for misconduct on remand.
Procedural posture

Upon remand from the U.S. Court of Appeals from the Ninth Circuit, the court reconsidered its order suspending an attorney for his conduct in a bankruptcy case.

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Consumer opinion summary, case decided on September 02, 2008 , LexisNexis #1108-068

In re Harter

Ruling
Trips to Europe and "luxurious" automobile did not give rise to "extravagant lifestyle" that would require bad faith dismissal.
Procedural posture

The United States Trustee (UST) moved to dismiss the debtor's chapter 7 case pursuant to 11 U.S.C.S. § 707(b)(3) alleging bad faith and that the totality of the circumstances demonstrated abuse. The UST contended that the debtor showed an abusive spending pattern before the filing. Her "totality of the circumstances" argument was based primarily on her belief that the debtor could afford to pay his debts.

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Consumer opinion summary, case decided on August 19, 2008 , LexisNexis #0908-121

In re Ryder

Ruling
Debtor in chapter 13 case converted to chapter 7 not required to file Form 22A to avoid dismissal.
Procedural posture

A debtor was ordered to file an Official Bankr. Form 22C, "Statement of Current Monthly Income and Means Test Calculation," a request for an extension of time, or a written request for an order excusing the filing of the form or to have her chapter 7 case dismissed for failure to file the required documents.

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Consumer opinion summary, case decided on August 18, 2008 , LexisNexis #0908-120