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§ 363

Sheppard v. Wells Fargo Fin. Leasing Inc. (In re Sheppard)

Ruling
Motion to dismiss by debtor in state court action against creditor with no counterclaim did not violate stay.
Procedural posture

Debtor had filed a state court action against creditor. In that action, the creditor answered but did not file a counterclaim. It moved to dismiss that lawsuit with prejudice. When it became apparent that the creditor intended to go forward on its motion to dismiss, the debtor filed the instant emergency motion to stay the state court action. The state court nevertheless went ahead with the hearing and granted the motion to dismiss.

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opinion summary, case decided on July 12, 2006 , LexisNexis #0906-108

In re Reese

Ruling
Debtor's motion to accept executory contracts for sale of properties free of liens and over wife's objections since sales were fair and reasonable and in best interests of estate and creditors.
Procedural posture

Movant debtor filed a motion for authority to accept executory contracts for the sale of real and personal property and to sell real and personal property free and clear of liens pursuant to 11 U.S.C. § 363(b), a motion to approve an agreed order for the use of cash collateral, and a motion for authority to obtain secured credit under 11. U.S.C. § 364(b)(1). Respondent wife objected to the first two motions.

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opinion summary, case decided on July 11, 2006 , LexisNexis #0806-006

In re Brooklyn Hosp. Ctr.

Ruling
Motion to authorize implementation of a key employee retention plan ("KERP") was granted since the consideration received in exchange for the KERP payments served an important corporate interest.
Procedural posture

Chapter 11 debtor, a hospital and its affiliates, moved for an order, pursuant to 11 U.S.C. §§ 105(a) and 363(b), approving and authorizing the implementation of a key employee retention plan ("KERP") for the purpose of retaining key employees of the debtor. Two parties, the state nurses'association and the trustee, objected to the approval of the KERP.

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opinion summary, case decided on May 04, 2006 , LexisNexis #0606-049

In re HHG Corp.

Ruling
Motion to set aside sale order was denied since opportunity to object to order was waived and, thus, order had res judicata effect.
Procedural posture

The bankruptcy court had previously approved a sale of the debtor's assets which included a library of video footage of a professional wrestling event. More than two years after entry of the sale order, movants alleged that they had an interest in the library of video footage and filed a motion to set aside the sale order.

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opinion summary, case decided on May 02, 2006 , LexisNexis #0606-050

In re Dunlap

Ruling
Creditor's objection to trustee's proposed sale of vehicle was overruled since trustee properly noticed sale and creditor did not have valid security interest.
Procedural posture

A chapter 7 matter came before the court on the Notice of Trustee's Intent to Sell Property of the Estate to the Debtor, and the Notice of Objection filed by a creditor.

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opinion summary, case decided on April 28, 2006 , LexisNexis #0606-082

Hower v. Molding Sys. Engg Corp.

Ruling
Creditor was denied motion to stay sale of debtor's assets since the sale had already occurred and creditor had not obtained a stay of the sale prior to the sale.
Procedural posture

Appellant creditor appealed from the District Court for the Southern District of Illinois which denied his motion to stay the sale of appellee debtor's assets in a bankruptcy proceeding because the sale had already taken place.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on April 19, 2006 , LexisNexis #0506-044

Hazelbaker v. Hope Gas Inc. (In re Rare Earth Minerals)

Ruling
Court affirmed dismissal of creditor's appeal since section 363(m) curtails appellate courts'power to undo the authorized sale of estate assets to a good faith purchaser unless the sale has been stayed pending appeal, and creditor failed to obtain such a
Procedural posture

Appellant creditor appealed from the District Court for the Northern District of West Virginia challenging the bankruptcy court's authorization of the assumption and sale of an oil and gas lease.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on April 18, 2006 , LexisNexis #0506-010

In re Claywell

Ruling
Court held that trustee could not sell debtor's real property at private sale under section 363 until issues regarding the property's ownership were resolved.
Procedural posture

Petitioner trustee filed a notice of intent to sell a debtor's real property at private sale, pursuant to 11 U.S.C. § 363. Respondent adjacent landowner objected to the notice.

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opinion summary, case decided on April 05, 2006 , LexisNexis #0606-014

In re Southwest Fla. Heart Group P.A.

Ruling
Motion to assume lease was denied since creditor had ownership interest and trustee could not sell property free and clear of that interest.
Procedural posture

In a chapter 11 case, before the court was trustee's motion to assume lease agreement and lease agreement addendum involving an unexpired non-residential lease entered into by debtor and creditor.

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opinion summary, case decided on February 07, 2006 , LexisNexis #0806-050

In re FLYi Inc.

Ruling
Court granted the debtor's motion to approve the sale of certain assets and assign a lease to the purchaser since the sale was in the best interests of all.
Procedural posture

The debtors filed a motion for the court to approve the sale of a portion of the debtors' assets, located at an airport, to the purchaser. The sale included the transfer of a use agreement and premises lease at the airport and related equipment. The court issued findings of fact and conclusions of law on the sale motion.

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opinion summary, case decided on February 01, 2006 , LexisNexis #0406-048