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§ 105

Braunstein v. Sperbeck (In re Logistics Info. Sys.)

Ruling
Debtor consolidated with new corporation created by principal with debtor's funds.
Procedural posture

Chapter 7 trustee filed a 10-count complaint against defendants, a corporation and various individuals, alleging, inter alia, that defendants made fraudulent conveyances under state law. The trustee sought an order requiring defendants to turn over assets to debtor corporation's bankruptcy law, and filed a motion for an order consolidating the debtor and defendant corporation. The case was tried to the court.

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Commercial opinion summary, case decided on March 18, 2009 , LexisNexis #0509-137

Gouveia v. TC Invs. LLC (In re Cahillane)

Ruling
Transfer of property at issue in contested adversary proceeding enjoined.
Procedural posture

Chapter 7 trustee brought an adversary proceeding against defendants. Among other Counts, Count I sought injunctive relief pursuant to 11 U.S.C.S. § 105(a). Count II sought a declaratory judgment as to property interests of the bankruptcy estate. Count III sought to pierce a corporate veil. Defendants moved to reject executory contract or in the alternative to lift the automatic stay. Defendants moved for summary judgment.

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Consumer opinion summary, case decided on March 11, 2009 , LexisNexis #0409-065

Kismet Acquisition LLC v. Icenhower (In re Icenhower)

Ruling
Attorneys for transferees of debtor sanctioned for role in clients'bad faith conduct.
Procedural posture

The bankruptcy court had awarded compensatory damages for contempt against defendant transferees. Because of evidence adduced at the contempt hearing, the court issued a sua sponte expanded order to show cause, ordering certain of the transferees'attorneys to show cause why they should not be held jointly and severally liable for the contempt sanctions. The court held evidentiary hearings on the expanded show cause order.

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Consumer opinion summary, case decided on March 10, 2009 , LexisNexis #0709-025

Lyondell Chem. Co. v. Centerpoint Energy Gas Servs. (In re Lyondell Chem. Co.)

Ruling
Injunction issued barring creditors from filing involuntary petition against debtor's parent company for 60 days.
Procedural posture

Chapter 11 debtors filed an adversary proceeding against defendant creditors, seeking an order prohibiting the creditors, until confirmation, from pursuing certain remedies against the debtors' non-debtor parent corporation. The court issued a temporary restraining order (TRO), and while the TRO was in effect, the debtors filed motions seeking two preliminary injunctions.

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Commercial opinion summary, case decided on February 26, 2009 , LexisNexis #0409-036

Nibbelink v. Wells Fargo Bank (In re Nibbelink)

Ruling
Bank that knowingly violated discharge injunction held liable for punitive damages.
Procedural posture

Chapter 13 debtors filed an adversary proceeding against bank, seeking damages for violation of a discharge injunction. Specifically, the debtors sought damages for overcharges to their account, damages for mental and emotional distress, punitive damages, attorney's fees, the removal of adverse entries from their credit bureau reports, and a daily fine. The court held an evidentiary hearing.

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Consumer opinion summary, case decided on February 11, 2009 , LexisNexis #0509-058

In re ELite Eyewear Holding Inc.

Ruling
Debtor's several U.S. affiliated LLCs and partnerships ordered consolidated with estate.
Procedural posture

A debtor filed for relief under chapter 7. Chapter 7 trustee sought to substantively consolidate certain affiliated and related subsidiaries and partnerships with the bankruptcy estate of the debtor.

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Commercial opinion summary, case decided on February 05, 2009 , LexisNexis #0409-037

Newton v. ACC of Enter. (In re Newton)

Ruling
Debtors could not bring private right of action for improper disclosure of social security numbers on proofs of claim.
Procedural posture

Debtors brought adversary proceedings seeking relief predicated on the disclosure of their unredacted social security numbers in the proofs of claim filed by defendants creditors. The creditors moved to dismiss the complaints for failure to state a claim upon which relief can be granted, under Fed. R. Bankr. P. 7012(b).

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Consumer opinion summary, case decided on January 29, 2009 , LexisNexis #0409-001

In re MD Promenade Inc.

Ruling
Debtor and secured creditor sanctioned for removing estate property from leased premises.
Procedural posture

A landlord sued the chapter 11 debtor, the debtors' principals, and a secured creditor, seeking damages pursuant to 11 U.S.C.S. § 362(k) for willful violation of the automatic stay. The landlord asserted that the debtor, principals, and creditor had removed property from the leased restaurant premises.

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Commercial opinion summary, case decided on January 08, 2009 , LexisNexis #0209-071

In re Vaughn

Ruling
Bankruptcy court declined to exercise powers to surcharge debtor's exemptions for administrative expenses.
Procedural posture

A debtor filed for relief under chapter 7. A trustee filed an objection to the debtor's claimed exemptions and sought to deny or surcharge the debtor's exemptions pursuant to 11 U.S.C.S. § 105(a).

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Consumer opinion summary, case decided on November 25, 2008 , LexisNexis #0409-106

In re Mitich

Ruling
Debtor barred from refiling for two years due to repetetive filings in disregard of bankruptcy system.
Procedural posture

The chapter 13 trustee filed a motion to dismiss the debtor's case and for an injunction against refiling.

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Consumer opinion summary, case decided on November 20, 2008 , LexisNexis #0109-036