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District of california

Tranche 1 (SVP-AMC) Inc. v. Relito Tan (In re Relito Tan)

Ruling
Denial of discharge granted on remand after evidentiary hearing established debtor's fraud.
Procedural posture

Plaintiff bank brought an adversary proceeding against defendant chapter 7 debtor, seeking denial of the debtor's bankruptcy discharge pursuant to 11 U.S.C. § 727(a)(2), (a)(3) and (a)(4)(A). The Ninth Circuit reversed the grant of summary judgment to the bank, concluding that an evidentiary hearing was required with respect to the debtor's intent. On remand, the bankruptcy court held a hearing.

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opinion summary, case decided on October 03, 2006 , LexisNexis #1106-128

In re Patino

Ruling
Post-discharge motion for relief from stay to repossess debtor's vehicle granted as to trustee's interest but denied as moot as to debtor's interest.
Procedural posture

A creditor filed a motion for relief from the automatic stay so that it could repossess a debtor's vehicle.

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opinion summary, case decided on September 29, 2006 , LexisNexis #1106-115

Sims v. Big Lots Sotres Inc.

Ruling
Employment discrimination actions that had not accrued as of filing date were not property of the estate.
Procedural posture

In a Title VII employment discrimination case, defendant former employer moved for summary judgment asserting that plaintiff former employee was judicially estopped from pursuing her claim because the employee filed for chapter 7 bankruptcy protection, obtained a discharge, and failed to disclose to the bankruptcy court her pending or potential suit or administrative proceeding against the employer.

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opinion summary, case decided on September 28, 2006 , LexisNexis #1006-131

Salas v. McGrannahan (In re Salas)

Ruling
Debtors'residence properly valued as of chapter 13 plan confirmation prior to conversion to chapter 7.
Procedural posture

Appellants, chapter 7 debtors, challenged the decision of the bankruptcy court that denied the debtors'motion to force appellee chapter 7 trustee to abandon the estate's interest in the debtors'residence.

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opinion summary, case decided on September 26, 2006 , LexisNexis #0207-016

Para v. Para (In re Para)

Ruling
Debt to former spouse discharged where former spouse had paid country club dues rather than support payments owed to debtor.
Procedural posture

Plaintiff former spouse brought an adversary proceeding against defendant debtor pursuant to 11 U.S.C. § 523(a)(15), seeking a judgment of nondischargeability as to two obligations imposed on the debtor in a divorce proceeding. The parties filed cross-motions for summary judgment with respect to this claim. The court held a hearing on the motions.

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opinion summary, case decided on September 26, 2006 , LexisNexis #1206-026

In re Golden Empire Air Rescue Inc.

Ruling
Settlement of complex state law action with creditors approved.
Procedural posture

The chapter 7 trustees in related bankruptcy cases filed motions to approve settlements entered into with settling creditor. Objecting creditor opposed the motions.

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opinion summary, case decided on September 25, 2006 , LexisNexis #1206-035

In re Covington

Ruling
Disallowance of exemption was not prerequisite to enforcement of domestic support obligation against the exempt property.
Procedural posture

Movant trustee objected to respondent debtor's exemptions in a $1,000 bank deposit and an automobile in a chapter 7 case. The trustee filed a motion to sell the automobile.

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opinion summary, case decided on September 22, 2006 , LexisNexis #1006-109

Brooks-Hamilton v. City of Oakland (In re Brooks-Hamilton)

Ruling
Postpetition recording of deeds from debtor to prepetition irrevocable trust was avoidable.
Procedural posture

Plaintiff debtor brought an adversary proceeding against defendant trustee in bankruptcy, and the trustee filed cross-claims. At issue was whether the debtor effectively transferred certain real property to an irrevocable trust prior to filing for bankruptcy, so that it was not property of the bankruptcy estate and could not effectively be sold by the trustee. The trustee moved for summary judgment and to dismiss the claims.

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opinion summary, case decided on August 25, 2006 , LexisNexis #1006-099

Midland Euro Exchange Inc. v. Swiss Finance Corp. (In re Midland Euro Exchange Inc.)

Ruling
Fraudulent transfer provisions of Bankruptcy Code do not apply to foreign transfers.
Procedural posture

Plaintiff chapter 7 trustee brought an adversary proceeding against defendants, a foreign exchange brokerage and 10 unnamed defendants, to set aside and recover allegedly fraudulent transfers of at least $897,000 paid by debtor. Two claims for relief were brought under 11 U.S.C. §§ 548(a)(1)(A) and 550(a). The brokerage, a foreign company, moved to dismiss pursuant to Fed. R. Civ. P. 12(b)(6), made applicable by Fed. R. Bankr. P. 7012(b).

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opinion summary, case decided on August 15, 2006 , LexisNexis #1006-023

Doolittle v. County of Santa Cruz (In re Metzger)

Ruling
Sale order issued without proper notice to county did not strip county of its interest.
Procedural posture

Plaintiff property owner sued defendants, a county, debtor, a development company, et al. The county and the State of California cross-complained. The owner sought a declaration that a 1992 Sale Order divested the property of the county's interest. The county sought a declaration that the Sale Order did not divest the property of its interest and an order remanding the matter to state court. Pending were cross-motions for summary judgment.

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opinion summary, case decided on August 02, 2006 , LexisNexis #0906-051