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D.C. Circuit

Webster v. Fujitsu Consulting Inc. (In re NETtel Corporation Inc.)

Plaintiff chapter 7 trustee initiated an adversary proceeding to avoid and recover two transfers made by debtor, as a result of cash infusions, to defendant vendor pursuant to 11 U.S.C. §§ 547 (amended 2005) and 550. Pending were cross-motions for summary judgment.
Ruling: 
Preference period payments to vendor were consistent with prior practice and with industry standards and coverd by "ordinary course"defense.
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United States v. Naegele

Defendant, an attorney licensed to practice law in California and the District of Columbia, moved to dismiss Count 7 of an indictment, which charged him with making false declarations or statements under penalty of perjury with respect to documents he filed in a chapter 7 petition in bankruptcy court in violation of 18 U.S.C. § 152(3).
Ruling: 
False sworn statements by debtor's attorney that were never filed with the court were not grounds for perjury charge.
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In re Barbaran

Chapter 7 trustee filed a motion to dismiss debtor's case on the grounds that debtor, who obtained a credit counseling agency briefing on the day of, but prior to the time of, the filing of the petition that commenced the bankruptcy case, did not comply with 11 U.S.C. § 109(h).
Ruling: 
Credit counseling obtained on the petition date prior to filing satisfied requirements.
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In re Denis

The creditor received relief from the automatic stay to enforce its security interest against the debtor's car. The car was repossessed and sold, and the debtor sought to disallow the creditor's claim, asserting that the repossession and sale of the car was a full satisfaction of the obligation, pursuant to 11 U.S.C. § 1325(a).
Ruling: 
"Hanging paragraph" did not apply to creditor's unsecured deficiency following repossession and sale of vehicle.
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Alberts v. HCA Inc. (In re Greater Southeast Cmty. Hosp. Corp.)

In a jointly administered chapter 11 proceeding, plaintiff, a liquidating trustee for debtors, brought an adversary action against defendant transferees seeking to recover transfers under the Illinois Uniform Fraudulent Transfer Act, 740 Ill. Comp. Stat. 160/1 et seq., pursuant to 11 U.S.C. § 544. One transferee filed a motion for summary judgment as to all counts against it in the trustee's third amended complaint.
Ruling: 
Transferee pursuant to asset purchase agreement for subsidiary debtor which provided for setoff of funds was initial transferee from which trustee could recover.
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Webster v. Management Network Group Inc. (In re NeTel Corp.)

Defendants, a consultant and a reseller, filed motions for summary judgment in chapter 7 trustee's action, which sought to recover pursuant to 11 U.S.C. §§ 547 and 550, preferential transfers allegedly made by debtor to defendants. Trustee also filed a motion for summary judgment.
Ruling: 
Ordinary course of business defense to avoidance was not available where debtor made more payments for larger amounts during preference period.
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Rehabiltated Inner City Hous LLC v. Mayor of Baltimore City ( In re Lesick)

Defendants, a mayor, a city council, tax sale purchasers, and assignees, filed a motion to dismiss plaintiff limited liability company's ("LLC") action. The LLC sought to have certain tax sales declared void due to violation of the automatic stay in a chapter 7 case and sought damages under former 11 U.S.C. § 362(h) (current version at 11 U.S.C. § 362(k)(1)).
Ruling: 
Limited liability company had standing to pursue automatic stay violation action, but court dismissed action seeking damages for stay violation under section 362(h).
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Wilson v. Home-Savers LLC (In re Wilson)

Plaintiff chapter 13 debtor sued defendants, seeking a declaratory judgment that a deed and a deed of trust he executed to convey a property and any other aspects of the transaction involving those instruments (including the borrowing of money) were void under the Bankruptcy Code due to the pendency of his bankruptcy case. The debtor and defendants filed motions for summary judgment.
Ruling: 
Property that had vested with debtor upon plan confirmation was no longer property of the estate and could be transferred.
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In re Manson

The debtor's home had been exempt under 11 U.S.C. § 522 utilizing District of Columbia exemptions. She obtained a discharge that applied to a creditor's claim, but not on any lien that the creditor might have had. She discovered that the creditor had a judicial lien on her property when she refinanced her home. She reopened her chapter 7 case and moved to avoid the judicial lien pursuant to 11 U.S.C. § 522(f)(1)(A).
Ruling: 
Debtor's motion to avoid lien was denied since lien was satisfied prior to filing of motion to avoid lien.
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Premium of Am. LLC v. Sanchez (Premium Escrow Servs.)

The debtor marketed to investors interests in viatical insurance policies. Under the debtor's confirmed plan, a successor entity sued defendant doctor on both the debtor's claims and the investor-related claims against him for negligence and misrepresentation in determining life expectancies applied to the policies, which resulted in losses on the investments. The doctor moved to dismiss the adversary proceeding under Fed. R. Civ. P. 12(b)(1).
Ruling: 
Court ruled it lacked jurisdiction over claims since they were either not related to case or were non-core proceedings.
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