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Western District

In re Cole

A United States trustee filed a motion under 11 U.S.C. § 707(b)(1), seeking an order dismissing a petition which a debtor filed under chapter 7. The trustee claimed that the debtor was not eligible for relief under chapter 7. The debtor opposed the motion.
Ruling: 
Debtor who owned vehicles free and clear could not take standard deductions.
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Rose v. Miller

Defendant, an attorney who had represented defendant bankruptcy trustee, filed a motion to dismiss plaintiff's action in which plaintiff alleged that the attorney violated 18 U.S.C. § 1964(c) of the Racketeer Influenced and Corrupt Organizations Act ("RICO"). The bankruptcy trustee and defendant, the trustee's subsequent counsel, previously were dismissed from the action.
Ruling: 
RICO action by debtor against trustee's attorney could only be brought by the bankruptcy estate and was dismissed.
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In re Lee

Petitioner, a court-appointed manager, moved for a permanent injunction on behalf of debtor and a motion to close a chapter 15 case filed by debtor in foreign bankruptcy. The motion for permanent injunction was opposed by a corporation. In the foreign bankruptcy case, the corporation had filed a claim for 2.1 billion Korean Won as a secured party.
Ruling: 
Debtor entitled to injunction to prevent recovery of debt in excess of amount provided for in Korean insolvency proceeding without filing adversary proceeding.
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In re Phenylpropanolamine Prods. Liab. Litig.

Plaintiff consumer had filed suit against defendant manufacturer, and the suit was transferred to a multidistrict proceeding before the court. The consumer alleged that he suffered injury following ingestion of a phenylpropanolamine-containing medication made by the manufacturer. Before the court was the manufacturer's motion for summary judgment, which was premised on a separate bankruptcy proceeding filed by the consumer.
Ruling: 
Products liability claim against drug manufacturer that was not scheduled by debtor was still property of the estate and could not be pursued by debtor personally.
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Cornejo v. Channel Lending Co.

Plaintiffs, consumers, and defendants, lending company and its owner, entered into a settlement agreement to settle claims of illegal lending practices. Because the owner filed for bankruptcy, the consumers sought to enforce the terms of the agreement against the company. The court ordered the company to pay the value of the settlement to the consumers. The owner moved for relief from the court's order enforcing the parties'settlement agreement.
Ruling: 
Court struck a motion to enforce a settlement agreement against a lending company pending the outcome of the company's owner's bankruptcy case.
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In re Porcheddu

The court issued a show cause order against an attorney and her law firm after discovering that the firm was adjusting time entries after-the-fact and then holding the fee statements out to be the firm's business records. The attorney and the firm represented creditors in consumer bankruptcy cases in the court.
Ruling: 
Court imposed sanctions on a firm and an attorney for fraudulent fee shifting.
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