Recent Opinions

ABI's Bankruptcy case opinion summaries website provides summaries of bankruptcy-related opinions issued by U.S. Bankruptcy Courts, District Courts and Circuit Courts of Appeal since 2005. Search almost 20,000 opinion summaries by keyword, relevant code section, court and judge. Opinion summaries are provided by our partner LexisNexis® Collier and are updated weekly.

In re Cable & Wireless USA Inc.

Creditor, a state taxing authority, filed a motion for leave to file a late proof of claim. The claim was for overdue unemployment insurance taxes. The trustee of the liquidating trust filed an opposition to the motion.
Ruling: 
Taxing authority was denied a motion to file a late proof of claim since excusable neglect was not found where the taxing authority had delayed more than a year in requesting to file the proof of claim.
ABI Membership is required to access the full summary of In re Cable & Wireless USA Inc.. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Cohen v. KB Mezzanine Fund II LP (In re SubMicron Sys. Corp.)

A creditors' committee in a bankruptcy case brought an adversary proceeding against appellee lenders challenging a sale under 11 U.S.C. § 363(b) of debtors' assets; appellant plan administrator was substituted for the committee. The district court withdrew the reference to the bankruptcy court and approved the sale. The administrator appealed.
Ruling: 
Asset sale approval was affirmed since the bankruptcy court did not err in characterizing the lenders'financing as debt rather than equity and since the lenders were allowed to credit bid the full face value of their claims against the debtor's estate.
ABI Membership is required to access the full summary of Cohen v. KB Mezzanine Fund II LP (In re SubMicron Sys. Corp.). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

In re Amherst Techs. LLC

In a core proceeding of 11 jointly administered chapter 7 cases, movant, a newly elected chapter 7 trustee, brought a preliminary objection to resolve a disputed election pursuant to Fed. R. Bankr. P. 2003(d)(2). The U.S. trustee filed a report of the disputed chapter 7 election. The court held a preliminary status meeting and a final hearing to resolve the disputed election.
Ruling: 
Court ruled that the interim trustee had offered sufficient proof that the creditor had an interest materially adverse to the other unsecured creditors and thus was not qualified to request an election and vote for a permanent trustee.
ABI Membership is required to access the full summary of In re Amherst Techs. LLC. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Ingham County v. Strojny (In re Strojny)

Plaintiff creditor was a county that had entered into a public construction contract with defendant debtor. Due to a billing error, the debtor was overpaid for work on the project. The county obtained a judgment against the debtor. The county filed the instant adversary proceeding against debtor seeking a determination that the debt was nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(A), (a)(4) and /or (a)(6).
Ruling: 
Judgment held by a county for overpayment to a debtor was deemed dischargeable since the debtor did not intend to injure the county by overbilling.
ABI Membership is required to access the full summary of Ingham County v. Strojny (In re Strojny). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

In re Phar-Mor Inc.

The cause was before the court on the parties'cross motions for summary judgment on the amount, if any, lessors should be allowed as (i) administrative expenses on lessors'Amended Applications and Requests for Administrative Expenses (Claim Nos. -26 and -09), and (ii) Lessors'proofs of claims, as amended (Claim Nos. 1922 and 1924) for damages arising from the rejection of lessors'equipment leases. Debtor objected to the lessors'four claims.
Ruling: 
Lessors were entitled to administrative rent claims for postpetition rent from the petition date to the contract rejection date.
ABI Membership is required to access the full summary of In re Phar-Mor Inc.. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Miller v. Advantage Credit Counseling Service (In re Miller)

Debtor filed a chapter 13 bankruptcy petition. The court granted debtor's motion for an extension of time for filing the certificate of credit counseling required under 11 U.S.C. §§ 109(h)(1) and 521(b). Debtor filed a document that was purportedly a certificate of credit counseling.
Ruling: 
Alleged facsimile from credit counseling agency did not meet certification of credit counseling requirement, but the court treated document as a motion for a reasonable time to obtain the certification.
ABI Membership is required to access the full summary of Miller v. Advantage Credit Counseling Service (In re Miller). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Missouri ex rel. Nixon v. Foster (In re Foster)

In consolidated adversary proceedings, motions for partial summary judgment were filed on certain of the claims asserted in the complaints filed by plaintiffs, state, an individual, and the trustee, for denial of discharge to debtors and defendants debtors, pursuant to 11 U.S.C. § 727(a)(3), (a)(4)(A), (a)(5) and (a)(6)(A).
Ruling: 
Debtors were denied a discharge since they knowingly and fraudulently failed to disclose or correct numerous material omissions or to comply with a court order to produce documents.
ABI Membership is required to access the full summary of Missouri ex rel. Nixon v. Foster (In re Foster). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

In re Art Midwest Inc.

Claimants moved to dismiss the debtor's bankruptcy case as a bad faith filing. The court granted the motion to dismiss. The debtor moved for a new trial or for the court to amend and supplement its findings. The debtor also moved for a new trial on the debtor's objections to the claims and to sell its assets free and clear of liens and encumbrances.
Ruling: 
Court rejected the debtor's objection that the claimants who were granted a motion to dismiss the debtor's case as a bad faith filing lacked standing since one was a creditor and the others were parties in interest.
ABI Membership is required to access the full summary of In re Art Midwest Inc.. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Buckeye Retirement Co. LLC Ltd. v. Bullough (In re Bullough)

Plaintiff judgment creditor brought an adversary proceeding against defendant bankruptcy debtor, alleging that a discharge was not warranted under 11 U.S.C. § 727(a)(3), (4) and (5) based on the debtor's false oaths in his schedules and statements, the debtor's failure to maintain adequate records, and the debtor's failure to account for a significant asset. The bankruptcy court conducted a trial.
Ruling: 
Discharge denied due to sophisticated debtor's false oaths and failure to keep adequate records.
ABI Membership is required to access the full summary of Buckeye Retirement Co. LLC Ltd. v. Bullough (In re Bullough). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

In re Parker

A debtor and a joint debtor filed a joint chapter 13 case. A creditor filed an application for an order confirming that no automatic stay was in effect as to the debtor and the joint debtor. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 applied to the case because the case was filed after the October 17, 2005 effective date of the Act.
Ruling: 
Court ruled that an automatic stay applied to one joint debtor but not the other since one had filed other petitions within a year of filing while the other debtor had not made such filings.
ABI Membership is required to access the full summary of In re Parker. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Lawrence v. Direct Loan (In re Lawrence)

Plaintiff debtor filed an adversary proceeding against defendant student loan lenders to determine the dischargeability of the debtor's student loan debt based upon undue hardship, pursuant to 11 U.S.C. § 523(a)(8).
Ruling: 
Student loan debt was deemed nondischargeable since debtor showed no evidence that repayment would impose undue hardship.
ABI Membership is required to access the full summary of Lawrence v. Direct Loan (In re Lawrence). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

In re Williams-Johnson

A creditor filed a proof of claim in a debtor's bankruptcy for amounts allegedly paid by the creditor to lenders secured by two parcels of real property of which the debtor was the co-owner with the creditor. The bankruptcy trustee objected to the claim.
Ruling: 
Creditor's amended claim was allowed as a late-filed claim under section 726(a)(2)(C) but only in a reduced amount.
ABI Membership is required to access the full summary of In re Williams-Johnson. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Gottlieb v. State Compensation Ins. Fund of Cal. (In re Intl Philanthropic Hosp. Found.)

Debtor operated a 155-bed hospital and was in chapter 11. The chapter 11 trustee found that the debtor-in-possession had cut a check to defendant, the state compensation insurance fund, for $172.860.92 for workers'compensation insurance. The case was converted to a chapter 7. The trustee moved for partial summary adjudication, seeking to recover the funds from defendant on the basis that it was an avoidable transfer under 11 U.S.C. § 549.
Ruling: 
Trustee could not avoid a payment to a state workers'compensation insurance fun since the postpetition transfer was approved by a court order, one that the truste e had requested.
ABI Membership is required to access the full summary of Gottlieb v. State Compensation Ins. Fund of Cal. (In re Intl Philanthropic Hosp. Found.). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

In re Schmidt

Debtors filed for bankruptcy relief under chapter 13. The creditors filed two motions to dismiss the petition and a motion to show cause why the bankruptcy proceeding should not be dismissed. The creditors contended that the debtors were not eligible for chapter 13 relief, pursuant to 11 U.S.C. § 109(e), and that the debtors did not file in good faith.
Ruling: 
Debtors'chapter 13 case was dismissed since they failed to show they had sufficient income to fund a plan and because their noncontingent, liquidated, unsecured debts exceeded the statutory limit.
ABI Membership is required to access the full summary of In re Schmidt. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

In re Kmart Corp.

Appellant credit card company sought review of a decision from the district court, which found that appellee, a large retail store chain, was entitled to continue its contract with the credit card company that provided for a co-branded credit card even though the retail chain had filed for bankruptcy.
Ruling: 
Retailer was entitled to assume an executory contract with a credit card company providing for a co-branded credit card postfiling since the retailer was not in breach of contract.
ABI Membership is required to access the full summary of In re Kmart Corp.. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Pages