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§ 105

In re O&S Trucking Inc.

Ruling
Authorization granted for payment of prepetition claims of critical vendors.
Procedural posture

A chapter 11 debtor filed an emergency motion for authorization to pay prepetition claims of critical vendors and contractors.

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Commercial opinion summary, case decided on June 29, 2012 , LexisNexis #0812-036

In re Tracy

Ruling
Creditor's collection of excessive fees under reaffirmation agreement, which was quickly corrected, was not grounds for sanctions.
Procedural posture

This matter was before the court on debtor's motion for sanctions or contempt against a creditor.

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Consumer opinion summary, case decided on June 27, 2012 , LexisNexis #0712-071

In re Eastman Kodak Co.

Ruling
Adversary proceeding was necessary to effect sale of debtor's patents free and clear of claimed interests of other companies.
Procedural posture

Chapter 11 debtors asked the court to issue an order per 11 U.S.C.S. § 105 in aid of their planned sale of certain patents to the effect that two affiliated companies had no ownership interests in any of the patents and permitting a sale of the patents to third parties free and clear of such claims. At issue was whether § 105 authorized such an order and the effect, if any, of Fed. R. Bankr. P. 7001 and 11 U.S.C.S. § 363.

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Commercial opinion summary, case decided on June 15, 2012 , LexisNexis #0712-072

In re Magnum

Ruling
Debtor's spouse sanctioned for filing two petitions in debtor's name without debtor's authorization.
Procedural posture

This matter arose from the court's concern that two bankruptcy filings in debtor's name were made without her knowledge or authority. The court instructed the chapter 13 trustee and the Bankruptcy Administrator (BA) to undertake a thorough investigation. Following the investigation, the court held a hearing to consider the Trustee's report and recommendations. The BA also filed a motion for sanctions against debtor's husband.

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Consumer opinion summary, case decided on June 13, 2012 , LexisNexis #0712-002

In re Smith

Ruling
Failure of debtor's personal injury lawyers to turn over documents until subpoenaed was not grounds for sanctions.
Procedural posture

Debtor filed a petition under chapter 7 of the Bankruptcy Code, and a trustee was appointed to administer the debtor's bankruptcy estate. The trustee filed a motion for an order requiring a law firm that represented the debtor in a personal injury action to disgorge fees it received, and requested sanctions in the form of payment of attorney's fees and expenses the trustee incurred to obtain information from the law firm.

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Consumer opinion summary, case decided on May 30, 2012 , LexisNexis #0712-003

Securities Investor Prot. Corp. v. Bernard L. Madoff Invs. Servs.

Ruling
Bankruptcy court could enjoin transferee's Cayman Islands suit regarding return of funds.
Procedural posture

Transferee challenged a decision of the U.S. Bankruptcy Court for the Southern District of New York, which enjoined the transferee and its agents from participating in an action in the Grand Court of the Cayman Islands and from filing any further proceedings against appellee trustee, the bankruptcy estate, or the estate's assets in any domestic or extraterritorial jurisdiction without first obtaining leave of the bankruptcy court.

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Commercial opinion summary, case decided on May 04, 2012 , LexisNexis #0612-001

In re Henderson

Ruling
Case dismissed due to debtor's issuance of forged document, ineligibility at petition date and failure to appear at creditors' meeting or show cause hearing.
Procedural posture

The court ordered debtor to appear and show cause as to why she should not be permanently barred from seeking future relief under Title 11 of the U.S. Code. The court held a show cause hearing at which debtor did not appear.

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Consumer opinion summary, case decided on May 04, 2012 , LexisNexis #0512-108

Kolsmala v. Autosport Intl Inc.

Ruling
Postpetition purchaser of debtor's race car held in contempt for failure to surrender car.
Procedural posture

Bankruptcy trustee filed an adversary proceeding against a corporation that was placed into chapter 7 bankruptcy, a person who owned the corporation, a person who bought a race car from the corporation's owner, and others, claiming, inter alia, that the car belonged to the corporation's bankruptcy estate and the buyer committed contempt of court. The trustee's claims against the buyer were tried to the court.

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Commercial opinion summary, case decided on April 23, 2012 , LexisNexis #0712-001

In re Hog Farm Inc.

Ruling
Alleged unsecured debt recharacterized as equity on trustee's objection.
Procedural posture

Chapter 7 trustee objected to proofs of claim filed by the three shareholders of the debtor.

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Commercial opinion summary, case decided on April 02, 2012 , LexisNexis #0412-107

In re McKenzie

Ruling
Law firm held in contempt for filing malicious prosecution action against debtor and trustee without leave of court.
Procedural posture

Chapter 7 trustee filed a motion for contempt against a law firm under 11 U.S.C.S. § 105.

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Consumer opinion summary, case decided on March 30, 2012 , LexisNexis #0512-036