Commercial

In re Winstar Communs.

The law firm and its consulting firm, both retained to complete commercial litigation on behalf of the chapter 7 trustee, moved for the authority to enter into an agreement with a lender to "hedge" a portion of their anticipated contingency fees for the litigation, which was on appeal. The United States trustee filed an objection to the motion, claiming the agreement violated the prohibition of fee sharing of 11 U.S.C. § 504.
Ruling: 
Agreement between law firm, consulting firm and lender to "hedge" contingency fees in litigation for chapter 7 trustee denied as "fee sharing."
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Commercial case opionion summary, case decided on December 04,2007, LexisNexis #1207-131

In re F.F. Station LLC

A claimant of a chapter 11 debtor requested payment of administrative claims pursuant to 11 U.S.C.S. § 365(d)(3) and § 503(b)(1)(A).
Ruling: 
Administrative expense claims by lessor related to build out of commercial space denied due to failure to comply with conditions of lease and lack of necessity.
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Commercial case opionion summary, case decided on December 03,2007, LexisNexis #0308-113

In re OccMeds Billing Servs.

A bankruptcy debtor in possession, a medical billing company, modified its business model to ease cash flow problems by ceasing to make advance payments to clients in anticipation of insurance proceeds, and by collecting amounts due from insurers or patients only as an agent for the clients. The debtor moved pursuant to 11 U.S.C. § 363(c) to use the cash collateral of a secured creditor.
Ruling: 
Debtor could not use cash collateral to ease cash flow problem where creditor's interest could not be adequately protected.
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Commercial case opionion summary, case decided on December 01,2007, LexisNexis #0108-074

In re Iron Age Corp.

The debtors'landlord filed a motion for an order allowing and directing immediate payment of administrative expense claims. The landlord sought payment of postpetition rent for property that he leased to the debtors by virtue of a lease entered into prior to the filing of the petition. The landlord argued that pursuant to 11 U.S.C. §§ 365(d)(3), 503(a) and 503(b)(1)(A) his claim was an administrative expense claim.
Ruling: 
Lease that was not legally terminated or rejected gave rise to administrative expense claim for landlord.
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Commercial case opionion summary, case decided on November 30,2007, LexisNexis #1207-114

BFG Invs. LLC v. Texas State Bank (In re Tbyrd Enters. LLC)

On remand from the district court, the court reconsidered the imposition of monetary sanctions under Fed. R. Bankr. P. 9011 for bad faith filing of a chapter 11 petition against the debtor's owner, the chapter 11 debtor's attorney, and the person who orchestrated the filing of the debtor's chapter 11 petition.
Ruling: 
Sanctions imposed against debtor's owner and attorney for filing for chapter 11 on the day debtor acquired property without court permission from another debtor preventing scheduled foreclosure.
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Commercial case opionion summary, case decided on November 30,2007, LexisNexis #0108-090

In re J.S. II LLC

Debtors, limited liability companies ("LLC") filed petitions for relief under chapter 11, and the matters were administered jointly. The debtors sought leave of court to sell some real estate holdings and two interested parties objected. The debtors sought reconsideration of the court's earlier interlocutory ruling that required consent of the interested party before the sale could be completed.
Ruling: 
Sale of real estate holdings by debtors could proceed without consent of interested party.
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Commercial case opionion summary, case decided on November 29,2007, LexisNexis #1207-121

In re Student Fin. Corp.

Movant, the chapter 7 trustee, sought an order granting summary judgment against claimant creditor, who had moved to compel debtor to assume or reject a lease for a telephone system, to compel immediate payment of certain rent and lease obligations or, in the alternative, to provide adequate protection. The creditor also sought relief from the automatic stay.
Ruling: 
Lease on which debtor had been current had not terminated prior to filing date so that creditor could make claim for rejection damages.
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Commercial case opionion summary, case decided on November 28,2007, LexisNexis #0108-025

In re SCO Group Inc.

Defendant creditor, which was a cross-claimant in certain federal district court litigation, sought relief from stay for cause pursuant to 11 U.S.C. § 362(d) so to allow the trial of a suit filed by plaintiff debtors, scheduled to begin three days after debtors filed bankruptcy, to go forward. Defendant had already won summary judgment against debtors on certain issues. Debtors, who were operating as debtors in possession, opposed the motion.
Ruling: 
Relief from stay granted to allow federal suit to go forward where bankruptcy had been filed on eve of trial.
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Commercial case opionion summary, case decided on November 27,2007, LexisNexis #0108-005

Hanrahan v. Grundy County Farm Serv. Agency (In re Walterman Implement Inc.)

Plaintiff trustee sought to avoid a transfer to defendant county farm service agency ("FSA") as a voidable preference under 11 U.S.C. § 547(b). The court had previously entered a consent order granting the trustee summary judgment on her case in chief, and the remaining issues for decision were FSA's 11 U.S.C. § 547(c)(2) course of business defense and its assertion of immunity from recovery under 11 U.S.C. § 550(a)(1).
Ruling: 
Transfer to farm service agency conforming to standard agency practices and procedures was unavoidable as made in ordinary course of business.
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Commercial case opionion summary, case decided on November 27,2007, LexisNexis #0108-010

In re Schilke

The IRS objected to the confirmation of a chapter 12 debtor's plan.
Ruling: 
Postpetition taxes arising from sale of farm assets were dischargeable.
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Commercial case opionion summary, case decided on November 27,2007, LexisNexis #0108-015

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