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District Court

Rose v. Jaga Inc. (In re Jaga Inc.)

Ruling
Summary judgment order was vacated, and matter was remanded to consider state law since agreement was not true lease that could be assumed or rejected under section 365(d)(4).
Procedural posture

Plaintiff, the trustee of a particular trust, challenged an order of the bankruptcy court, which granted summary judgment to defendant debtors and overruled the trustee's objection that a 1968 land agreement should have been either automatically terminated as an unassumed lease for nonresidential property pursuant to 11 U.S.C. § 365(d)(4) or terminated for breach of an implied covenant.

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opinion summary, case decided on July 25, 2006 , LexisNexis #0806-084

Romagosa v. Thomas

Ruling
Court affirmed order approving settlement agreement since in approving agreement court did not review state court judgment merits and, thus, did not offend Rooker-Feldman doctrine.
Procedural posture

Appellant creditor sought review of a decision of the bankruptcy court, which approved a settlement agreement related to state court litigation offered by appellee trustee and overruled the creditor's objection.

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opinion summary, case decided on July 25, 2006 , LexisNexis #0806-070

Williamson v. Cent. Miss. Med. Ctr.

Ruling
Debtor's motion for abstention and remand of action back to state court was granted since state court could handle matter timely and would not impede estate's efficient administration.
Procedural posture

Plaintiff, debtor, sued defendants, a hospital, doctors, and corporations, in state court, asserting claims of medical negligence and product liability based upon injuries debtor allegedly sustained during a medical procedure. Debtor moved to abstain and remand the case to the Circuit Court of the First Judicial District of Hinds County, Mississippi. Defendants opposed the motion.

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opinion summary, case decided on July 20, 2006 , LexisNexis #0806-069

Magten Asset. Mgmt. Corp. v. Paul Hastings Janofsky & Walker LLP (In re Northwestern Corp.)

Ruling
Court affirmed order denying motion for attorney disqualification since potential conflict of interest was not per se disqualification.
Procedural posture

Appellant creditor sought review of an order issued by the bankruptcy court, denying the creditor's motion to disqualify appellee, the debtor's counsel.

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opinion summary, case decided on July 17, 2006 , LexisNexis #0806-048

Alabama Dept of Human Resources v. Sanders (In re Sanders)

Ruling
BAPCPA did not require domestic support arrerages to be paid in full before other disbursements in a chapter 13 plan.
Procedural posture

Appellant creditor sought review of an order of bankruptcy court, which included the creditor's domestic support arrearages within plan of appellees, two debtors and the debtors'trustee, but overruled the creditor's objection to confirmation of the plan as to whether the order of priorities of 11 U.S.C. § 507 should apply to the plan.

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opinion summary, case decided on July 17, 2006 , LexisNexis #0906-074

In re JII Liquidating Inc.

Ruling
Court found cause to terminate automatic stay to allow finance company to receive refund of unearned insurance premiums.
Procedural posture

Plaintiff finance company, which financed the purchase of insurance policies by the insured debtors, moved for adequate protection or to lift the automatic stay with respect to unearned insurance premiums. The chapter 7 trustee objected to the relief sought.

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opinion summary, case decided on July 12, 2006 , LexisNexis #0806-019

Mickler v. Mickler (In re Mickler)

Ruling
Court affirmed nondischargeability of debts arising from debtor's divorce due to debtor bad faith.
Procedural posture

The bankruptcy court determined that: (1) a bankruptcy debtor's property settlement and maintenance award was nondischargeable under 11 U.S.C. § 523(a)(5) and (15); (2) the debtor's bad faith warranted dismissal of his chapter 11 proceeding; (3) he was barred from refiling a bankruptcy petition for 24 months; and (4) the debts arising from his divorce were forever nondischargeable. The debtor appealed.

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opinion summary, case decided on July 10, 2006 , LexisNexis #0806-025

Spells v. Spence

Ruling
Court granted motion to remand state tort claim back to state court since chapter 13 case had been discharged and, thus, federal court did not have bankruptcy jurisdiction.
Procedural posture

In a medical malpractice claim, plaintiff individual sued defendant doctor, hospital, and unknown others, in state court. After defendants learned of the individual's chapter 13 bankruptcy filing, they removed the case to federal court pursuant to 28 U.S.C. § 1452(a). The individual moved to remand the case back to state court.

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opinion summary, case decided on July 10, 2006 , LexisNexis #0806-034

BNY Capital Funding LLC v. Us Airways Inc.

Ruling
Court deemed that letter of intent did not constitute executory contract since there was no unperformed or future obligations.
Procedural posture

Appellant creditor challenged an order of the bankruptcy court, which determined that appellee debtor retained certain rights agreed to by appellant in a Letter of Intent ("LOI"), and that the LOI was not an executory contract and thus subject to the prohibition on assumption of contracts to extend financial accommodations under 11 U.S.C. § 365(c)(2).

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opinion summary, case decided on July 07, 2006 , LexisNexis #0806-051

Braunstein v. Panagiotou (In re McCabe)

Ruling
Court deemed that co-owner of a limited liability company with debtor willfully violated automatic stay by unilaterally reallocating ownership interests.
Procedural posture

Plaintiff trustee filed a motion for partial summary judgment on his claim that defendants, a corporation and an individual, violated the automatic stay under 11 U.S.C. § 362(d). Defendants filed a motion for summary judgment in as to plaintiff's claims for violation of the automatic stay, for turnover under 11 U.S.C. § 542, to avoid postpetition transfers pursuant to 11 U.S.C. § 549(a)(1) and (2)(B), and claims under state law.

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opinion summary, case decided on June 27, 2006 , LexisNexis #0806-018