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 23,000 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 Refco Inc.

After several related entities filed voluntary chapter 11 petitions, movant official committee of unsecured creditors moved to clarify its obligation under 11 U.S.C. § 1102(b)(3)(A) to provide unsecured creditors who were not members of the committee with access to information.
Ruling: 
Official committee of unsecured creditors had duty to keep unsecured creditors informed but did not have to disclose information that was confidential or required waiving of attorney-client privilege.
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In re Jaraki

A bankruptcy debtor was discharged but his case was reopened upon discovery of a pending state litigation by the debtor which was not disclosed in the bankruptcy. The trustee moved for approval of a settlement of the litigation for $12,500 pursuant to Fed. R. Bankr. P. 9019, and the debtor objected to the settlement on the ground that the value of the litigation substantially exceeded the settlement.
Ruling: 
Debtor's objection to a settlement of undisclosed litigation was overruled s ince the settlement provided for more recovery than was likely to occur and, thus, was in the best interest of the estate.
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Will v. Northwestern Univ. (In re Nutraquest Inc.)

Appellant university filed a third party complaint seeking contribution from various makers of ephedra products after it was sued following the death of one of its football players. Appellee debtor, one of the makers, later filed for bankruptcy protection. The university appealed after the district court upheld the bankruptcy court's approval of a settlement between appellee and the player's estate.
Ruling: 
Court did not abuse its discretion in finding that a tort settlement met Rules requirements and state tort law.
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In re Koliba

In earlier proceedings, the trustee filed a motion to dismiss the debtors'petition for bankruptcy relief because debtors'counsel had not complied with the signature requirements for electronic filing, and the motion to dismiss was denied. The trustee also asked the court to review and deny the fees paid to the debtors'attorney, pursuant to 11 U.S.C. § 329(a) and to order a full or partial disgorgement of the fees already paid.
Ruling: 
Court denied a trustee's motion for denial of the debtor's attorney's fees since the attorney had made a technical filing error and had promptly corrected it.
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In re Council

A prior bankruptcy of debtors, husband and wife, was dismissed upon the debtors'failure to make payments due under their confirmed chapter 13 plan. The debtors subsequently filed a second chapter 13 petition and moved to extend the automatic bankruptcy stay pursuant to 11 U.S.C. § 362(c)(3)(B).
Ruling: 
Automatic stay extension was granted from a prior chapter 13 case since the debtors showed that although they had not complied with the prior plan, that non-compliance was due to a job loss and their second filing was made in good faith.
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In re Evans

In a chapter 13 bankruptcy case, debtors objected to a proof of claim filed by creditor, a mortgagee. More specifically, they objected to the extent of creditor's claim. The court conducted a hearing on the objection.
Ruling: 
Court sustained debtors' objection to some of a creditor mortgagee's proof of claim for attorneys'fees and costs since the creditor could not make a secured arrearage claim under section 1322(e) if the fees and costs did not first qualify as part of a secured claim under section 506(b).
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Gruver v. United States Dept of the Treasury (In re Gruver)

Plaintiffs, joint bankruptcy debtors, brought an adversary proceeding against defendant United States, alleging that the government violated the automatic bankruptcy stay by offsetting the debtors'income tax refund against the prior tax liability of one of the debtors.
Ruling: 
Debtors failed to show that the IRS had intentionally violated the automatic stay since the IRS reversed its offsetting of the debtors' refund against a prior tax liability once it became aware of the bankruptcy case.
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In re Star Broad.

Creditor filed a motion for relief from the automatic stay, 11 U.S.C. § 362, in chapter 11 debtor's case and a motion to dismiss debtor's case under 11 U.S.C. § 1112(b).
Ruling: 
Creditor was granted a motion for relief from the automatic stay since the debtor's acting in bad faith by attempting to reject a perceived unprofitable contract warranted such relief.
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In re Slocum Lake Drainage Dist.

The debtor, a county drainage district located in the State of Illinois petitioned for bankruptcy relief pursuant to chapter 9. The movant creditor sought dismissal of the petition pursuant to 11 U.S.C. § 921(c), because it contended that the debtor was not authorized under Illinois law to file a petition under chapter 9, as required by 11 U.S.C. § 109(c)(2).
Ruling: 
Debtor's case was dismissed since the debtor was not authorized under Illinois law to file a petition under chapter 9.
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AC&S Inc. v. Travelers Cas. & Sur. Co.

Appellant asbestos company (insured) sought review of a decision of the district court, which affirmed an arbitration award in favor of appellee insurance company. The arbitration resolved an issue regarding the allocation of claims between the insured's products coverage and its "operations"coverage.
Ruling: 
Arbitration award violated automatic stay since the arbitration should have been halted once it was evident that estate property could be negatively affected.
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In re Nobex Corp.

A bankruptcy debtor in possession, a development stage biopharmaceuticals company, sought to preserve its assets while pursuing a sale of substantially all of its assets pursuant to an orderly sale process. The debtor moved for authorization to pay sale-related incentives to senior management officials.
Ruling: 
Sale-related incentive pay met Code requirements.
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In re Proud Mary Marina Corp.

Debtor, the operator of a mobile home park, and a proposed purchaser each presented a competing chapter 11 plan of reorganization. Debtor also moved for estimation of application for payment of the administrative expense claims of the proposed purchaser. The contestants disputed whether the plans satisfied the "good faith" requirement and the "feasibility" requirements set forth in 11 U.S.C. § 1129(a)(3) and (11).
Ruling: 
Purchaser of debtor's property's chapter 11 plan was confirmable while the debtor's plan was not confirmable since it failed good faith and feasibility requirements.
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Jacksonville Airport Inc. v. Michkeldel Inc.

In defendant debtor's chapter 11 bankruptcy proceeding, plaintiff creditor voted to reject the debtor's reorganization plan. The debtor refused to count the creditor's vote, maintaining that the creditor's claim was not allowed. The bankruptcy court held that debtor did not have to count the creditor's vote, and, on the creditor's appeal, the district court affirmed. The creditor appealed.
Ruling: 
Creditor was not entitled to vote on debtor's reorganization plan since the debtor had objected to the creditor's claim.
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Youngman v. Fleet Bank N.A. (In re A&P Diversified Techs. Realty Inc.)

Appellant bankruptcy trustee filed an appeal after the district court affirmed two orders entered by a bankruptcy court, which awarded attorneys'fees and expenses to appellee mortgagee bank under 11 U.S.C. § 506(b) for foreclosure-related services that the bank's attorneys rendered. The trustee argued that the bank was not entitled to fees under section 506(b).
Ruling: 
Mortgage bank was not entitled to collection-related attorneys'fees and expenses provided for under a mortgage agreement since the agreement had merged into a foreclosure judgment.
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Field v. Wells Fargo (In re Bross)

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant mortgagee seeking to avoid a putative mortgage under 11 U.S.C. § 544(a)(3) on the ground that the mortgage was not signed by the bankruptcy debtor as the mortgagor as required by Ohio Rev. Code Ann. § 5301.01. The trustee and the mortgagee cross-moved for summary judgment.
Ruling: 
Trustee was able to avoid a transfer pursuant to section 544(a)(3) since the mortgage was not signed by the debtor and, thus, not fully executed.
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