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Rule 9019

In re Wolff

Ruling
Trustee's settlement of malpractice claim against debtor's former counsel approved.
Procedural posture

Debtors asserted a malpractice claim against their former counsel alleging that counsel were negligent in failing to prevent their mortgage creditor from obtaining relief from the automatic bankruptcy stay to foreclose against the debtors' real property which the debtors intended to develop through their plan. The bankruptcy trustee moved for approval of a settlement of the malpractice claim.

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Consumer opinion summary, case decided on January 04, 2010 , LexisNexis #0210-034

In re Barbieri

Ruling
Trustee's settlement with acquisitions company not approved as unreasonable and not in best interests of creditors.
Procedural posture

Debtor filed a petition under chapter 11 in November 2000, the case was converted to one under chapter 7 in January 2002, and a chapter 7 trustee was appointed to administer the debtor's bankruptcy estate. The trustee filed a motion under Fed. R. Bankr. P. 9019, seeking approval of a settlement he negotiated with an acquisitions company that filed two claims against the debtor's bankruptcy estate.

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Consumer opinion summary, case decided on December 29, 2009 , LexisNexis #0210-035

In re Viking Offshore (USA) Inc.

Ruling
Debtor oil company's settlement with creditor rig repair company approved.
Procedural posture

Debtors, a corporation and related entities, filed voluntary petitions under chapter 11 of the Bankruptcy Code, and the court ordered joint administration. Claimant dry dock and rig repair company filed a claim against one of the debtors' bankruptcy estates, claiming that it was owed $ 8,473,521, and the debtor asked the court to approve a settlement agreement it negotiated with the rig repair company.

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Commercial opinion summary, case decided on December 11, 2009 , LexisNexis #0110-130

In re Bailey

Ruling
Trustee's motion to settle wrongful termination action against state department of transportation granted.
Procedural posture

A chapter 7 trustee filed a motion for authority to settle a controversy pursuant to Fed. R. Bankr. P. 9019(a). The debtors filed an objection to the motion to settle.

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Consumer opinion summary, case decided on December 10, 2009 , LexisNexis #0110-139

In re Town LLC

Ruling
Settlement between involuntary debtor restaurant and petitioning creditor hotel approved.
Procedural posture

Three creditors filed an involuntary petition under chapter 7 of the Bankruptcy Code against debtor LLC, and the debtor consented to the petition and the court ordered relief. A trustee was appointed to administer the debtor's bankruptcy estate, and he sought approval of a settlement agreement between the bankruptcy estate and the debtor's landlord. Objectants, three of the debtor's former members, opposed the settlement.

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Commercial opinion summary, case decided on July 27, 2009 , LexisNexis #0909-062

Technology Lending Partners LLC v. San Patricio County Cmty. Action Agency (In re San Patricio County Cmty. Action Agency)

Ruling
District court erred in denying appeal of settlement on grounds of equitable mootness.
Procedural posture

In adversary proceedings, appellant lenders challenged a judgment from the district court for the Southern District of Texas dismissing their appeal of the bankruptcy court's approval of a settlement in chapter 7 proceedings. Appellee was the bankruptcy trustee for debtor nonprofit community action agency, which had received State and federal operating funds in support of its charitable activities, including the purchase of passenger vans.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on July 14, 2009 , LexisNexis #0809-035

In re Spansion Inc.

Ruling
Debtor's motion for approval of settlement of patent litigation denied on reasonableness grounds.
Procedural posture

On March 1, 2009, debtors filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code. Debtors were operating their businesses and managing their properties as debtors-in-possession. Before the court was debtors' motion for an order pursuant to 11 U.S.C.S. §§ 105(a), 363(b), and Fed. R. Bankr. P. 9019 authorizing settlement of patent litigation with, and license of intellectual property to, an electronics company.

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Commercial opinion summary, case decided on June 02, 2009 , LexisNexis #0709-098

In re Stone Barn Manhattan LLC

Ruling
Settlement with debtor's principal consumer personal property lessor approved subsequent to default under the lease.
Procedural posture

The debtors, a chain of approximately 276 apparel and accessories discount stores, moved, under Fed. R. Bankr. P. 9019, for approval of a settlement agreement with their principal non-consumer personal property lessor. The settlement was supported by the Official Committee of Unsecured Creditors of the debtors, but was opposed by the Official Committee of Unsecured Creditors of the successor in interest to the debtors, also in bankruptcy.

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Commercial opinion summary, case decided on May 22, 2009 , LexisNexis #0709-099

OConnell v. Packles (In re Hilsen)

Ruling
Settlement of support claim between manager of rock band Kiss and former spouse approved.
Procedural posture

Chapter 7 trustee brought an action against the second former wife of the debtor and other entities, as transferees of real property from the debtor. The trustee moved, under Fed. R. Bankr. P. 9019, for the court's approval of a proposed settlement agreement with the transferees. The principal creditor, the first former wife of the debtor, objected to the terms of the settlement agreement.

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Consumer opinion summary, case decided on March 17, 2009 , LexisNexis #0509-140

In re Teknek LLC

Ruling
Settlement agreement approved as in best interests of estate.
Procedural posture

A chapter 7 trustee filed a motion under Fed. R. Bankr. P. 9019(a) for authority to compromise claims with the individual owners and a non-debtor corporate affiliate of the debtor. The motion was opposed by a former special counsel to the chapter 7 trustee and holder of an administrative claim.

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Commercial opinion summary, case decided on March 13, 2009 , LexisNexis #0409-070