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§ 105

Hawaii Structural Ironworkers Pension Trust Fund v. Calpine Corp.

Ruling
Bankruptcy court properly granted injunction against prosecutor of state court action that would cause imminent substantial and irrevocable harm to restructuring.
Procedural posture

A state court action asserted claims against, among others, appellee debtor and five company directors. The debtor filed a voluntary petition under chapter 11 of the Bankruptcy Code. The bankruptcy court granted an injunction pursuant to 11 U.S.C. §§ 105(a) and 362(a)(1), and (a)(3) against the prosecution of the state court action against the directors. Appellant class representative appealed.

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opinion summary, case decided on December 20, 2006 , LexisNexis #0207-001

In re Dean

Ruling
Court exercised equitable powers to reduce creditor's claimed late charges and costs.
Procedural posture

Debtor objected to an amended proof of claim filed by claimant, the holder of an interest on debtor's property. At issue was whether the court might properly exercise its powers under 11 U.S.C. § 105 to reduce the amount allowable thereunder.

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opinion summary, case decided on November 21, 2006 , LexisNexis #0107-037

In re Ortiz

Ruling
Debtor attorney who failed to comply with contempt order assessed additional sanctions.
Procedural posture

A debtor was ordered to appear and show cause why he should not have been sanctioned and held in civil contempt for failing to comply with the court's order, which required him to pay sanctions, dismissed his chapter 7 case, and barred future filings. The United States Trustee filed a certificate of non-compliance/non-payment reflecting that the debtor failed to comply with the sanctions order.

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opinion summary, case decided on October 13, 2006 , LexisNexis #1106-048

In re Allied Holdings Inc.

Ruling
Creditor held in contempt for failing to vacate postpetition default judgment for prepetition debt upon notice of bankruptcy.
Procedural posture

Creditor, a motorist injured in an accident by one of debtors'employees, obtained a $1.5 million default judgment before learning of debtors'pending bankruptcy case. He then moved for relief in the form of an annulment of the automatic stay. Debtors filed a motion for contempt against the creditor and his attorneys for refusing to vacate the judgment, and sought an award of damages, pursuant to 11 U.S.C. § 105(a).

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opinion summary, case decided on October 10, 2006 , LexisNexis #0107-120

Magten Asset Management Corp. v. Northwestern Corp. (In re Northwest Corp.)

Ruling
Court could not substitute plan committee for the official committee in an adversary proceeding.
Procedural posture

Plaintiffs, asset and trust companies, sued debtor in bankruptcy court. The bankruptcy plan committee claimed that it was entitled to take the place of the official committee under the "transfer of interest" provision of Fed. R. Civ. P. 25(c). The plan committee urged the court to allow the substitution pursuant to its authority under 11 U.S.C. § 105(a). Both the companies and debtor filed objections.

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opinion summary, case decided on October 03, 2006 , LexisNexis #1106-111

Baerga v. Solomon Bros. Realty Corp. (In re Raven)

Ruling
Debtor awarded punitive damages for creditor's knowing violation of discharge injunction and damages for emotional disturbance of being served at financial insitution where she worked as loan officer.
Procedural posture

After a court entered a default judgment in favor of defendant creditor in its action for collection of money and foreclosure of a mortgage against plaintiff debtor, the court entered a default judgment in the debtor's adversary proceeding alleging that the underlying debt had been discharged before the mortgage lien securing its payment was registered. The debtor filed a motion for entry of judgment and for damages.

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opinion summary, case decided on September 28, 2006 , LexisNexis #0307-018

In re Myers

Ruling
Competency was not necessary to qualify as debtor and court could appoint next friend in order to aid in administration of case pursuant to equitable powers.
Procedural posture

Chapter 13 debtor wife filed a motion to become the next friend of debtor husband pursuant to Fed. R. Bankr. P. 1004.1.

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opinion summary, case decided on August 24, 2006 , LexisNexis #1006-071

Fairchild Dornier GmbH v. Official Comm. of Unsecured Creditors

Ruling
Bankruptcy court properly declined to recharacterize claim for reasons other than disallowance or equitable subordination.
Procedural posture

Appellant, the parent corporation of a bankrupt subsidiary debtor, sought review of a judgment from the District Court for the Eastern District of Virginia affirming the bankruptcy court's recharacterization of the parent corporation's sale of automobile parts to the debtor as an equity contribution rather than a debt.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on June 27, 2006 , LexisNexis #0906-048

In re Brown

Ruling
Court granted modification of plan to correct drafting error since notice had been defective and plan had not become final under section 1329(b)(2).
Procedural posture

A creditor objected to debtors'original chapter 13 plan. The objection was resolved by an agreement that the "best interest number" under 11 U.S.C. § 1325(a)(4) would be $6,000. Debtors'counsel sent the trustee a proposed modified plan that, inter alia, substituted "n/a" for the best interest number. The trustee did not object to the proposed modified plan. Two years later, the trustee moved to reinstate the original best interest number.

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opinion summary, case decided on May 31, 2006 , LexisNexis #0706-050

Gonzalez-Ruiz v. Doral Fin. Corp. (In re Gonzalez-Ruiz)

Ruling
Court ruled that the bankruptcy court's order prohibiting debtors, who were serial filers and had attempted to refile to circumvent orders in their prior case, from making future filings.
Procedural posture

Appellant debtors challenged the Bankruptcy Court for the District of Puerto Rico's orders granting appellee creditor authority to proceed with a foreclosure sale of the debtors'residence, dismissing the debtors'fourth chapter 13 bankruptcy case, granting the creditor in rem relief from the automatic stay, barring the debtors from filing another bankruptcy petition, and denying the debtors'motion for reconsideration.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on May 04, 2006 , LexisNexis #0506-114