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northern district of california

Qmect Inc. v. Burlingame Capital Partners II LP (In re Qmect Inc.)

Ruling
Creditor held a valid claim for postpetition attorneys'fees incurred in defending adversary proceeding.
Procedural posture

Defendant moved for an award of postpetition attorneys'fees as part of its judgment in adversary proceedings filed by plaintiff debtors. At the time, Ninth Circuit precedent (the Fobian case) held that attorneys'fees were not recoverable for litigating issues peculiar to bankruptcy law. In its Travelers decision, the Supreme Court overruled the Fobian case. Following briefing, the bankruptcy court issued its ruling on defendant's motion.

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opinion summary, case decided on May 17, 2007 , LexisNexis #0707-058

In re Connectix Corp.

Ruling
Landlord's capped claim for unpaid commercial rent allowed but less draws on letter of credit.
Procedural posture

Creditor, the former commercial landlord of the debtor, filed a claim in the amount of $2,335,283.99 based on the debtor's future lease obligations. The chapter 7 trustee, the debtor, and its major shareholders, objected to the amount of claim, and asserted that, under the correct application of 11 U.S.C. § 502(b)(6), the landlord's recovery from the bankruptcy estate to $446,246.99.

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opinion summary, case decided on May 10, 2007 , LexisNexis #0907-025

In re Swan

Ruling
Debtor entitled to claim expenses for vehicle owned outright as well as full housing expense under IRS standards and to pay projected 60 month disposable income over 36 months.
Procedural posture

Creditor filed an amended objection to the confirmation of chapter 13 debtor's amended plan.

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opinion summary, case decided on April 18, 2007 , LexisNexis #0607-016

In re Sonicblue Inc.

Ruling
Debtor's counsel disqualified for failure to disclose connection to senior bondholders who controlled creditors'committee.
Procedural posture

Bankruptcy debtors'counsel issued a prepetition opinion letter assuring payment to certain of the debtors'senior bondholders who effectively controlled the creditors'committee in the debtors'bankruptcy. After disclosure of the opinion letter, the U.S. Trustee moved to disqualify the debtors'counsel and to appoint a chapter 11 trustee, and a claims trader which acquired claims against the estate moved to convert the case to chapter 7.

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opinion summary, case decided on March 26, 2007 , LexisNexis #0507-033

California Franchise Tax Bd. v. Joyce (In re Joyce)

Ruling
Bankruptcy court erred in holding that state tax authority could not collect taxes where debtor's return was filed after claims bar date.
Procedural posture

Appellants, the State of California Franchise Tax Board and its executive director ("FTB"), sought review of an order from the bankruptcy court denying FTB's motion for summary judgment and granting summary judgment in favor of appellee chapter 13 debtors in the debtors'adversary action seeking a determination that the debtors'year 2000 taxes were discharged and an injunction enjoining the FTB from attempting to collect the year 2000 taxes.

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opinion summary, case decided on March 23, 2007 , LexisNexis #0507-067

McColm v. Kistler

Ruling
Bankruptcy court properly denied discharge in converted chapter 7 case filed within eight years of prior chapter 7 discharge.
Procedural posture

Appellant debtor appealed the decision of the bankruptcy court that denied her discharge pursuant to 11 U.S.C. § 727(a)(8).

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opinion summary, case decided on March 07, 2007 , LexisNexis #0507-103

In re Withers

Ruling
Failure to obtain credit counseling did not require immediate dismissal.
Procedural posture

A chapter 7 bankruptcy debtor failed to obtain credit counseling as required under 11 U.S.C. § 109(h) to be eligible as a debtor in bankruptcy and failed to file documents required by 11 U.S.C. § 521(a)(1)(B). The bankruptcy court denied the trustee's motion for an order to show cause why the debtor should not be held in contempt for disobeying a court order, pending consideration of whether dismissal of the case was warranted or required.

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opinion summary, case decided on February 26, 2007 , LexisNexis #0407-036

In re Keppert

Ruling
Attorneys' fee application denied due to inadequate notice to creditors and illegible time records.
Procedural posture

The attorney who represented two bankruptcy debtors filed an application with the court seeking an award of $21,977.10 in attorneys'fees and $136.74 in costs for his representation of the debtors. The case was originally filed under chapter 7, it was later converted to a chapter 13 case, and it was changed back into a chapter 7 case in 2006. Both of the debtors died while the bankruptcy proceedings were pending.

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opinion summary, case decided on February 15, 2007 , LexisNexis #0407-127

Locke v. Scoggins (In re Perpinan)

Ruling
Payment of sale of debtor's residence to debtor's mother was an avoidable payment to an insider.
Procedural posture

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant, the debtor's mother, to avoid alleged transfers from the debtor made to his mother or on his mother's behalf a little more than 90 days prior to the bankruptcy.

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opinion summary, case decided on February 14, 2007 , LexisNexis #0307-137

In re Kirkland Knightsbridge LLC

Ruling
Debtor granted authority to conduct private sales of wine delivered from winery pursuant to bottling agreement.
Procedural posture

Defendant chapter 11 debtor filed a motion for authority to conduct "Article 9" private sales of wine, the collateral asset. Plaintiff winery objected.

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opinion summary, case decided on February 09, 2007 , LexisNexis #0307-113