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§ 502(b)

In re Laprade

Ruling
Claim received one day after bar date disallowed on debtor's objection.
Procedural posture

The debtors filed for relief under chapter 13 and the creditor filed a proof of claim in the case. The debtors objected to the claim, pursuant to 11 U.S.C. § 502(b) and Fed. R. Bankr. P. 3002, a hearing was held on the matter.

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opinion summary, case decided on August 09, 2007 , LexisNexis #0907-079

National Energy & Gas Transmission Inc. v. Liberty Elec. Power LLC (In re National Energy & Gas Transmission Inc.)

Ruling
Debt was not reduced by payments received from guarantor but was capped at amount due under original agreement on petition date.
Procedural posture

In appellant debtors'chapter 11 proceeding, appellee creditor was paid the full amount due under the parties'electricity tolling agreement. The creditor allocated the amount first to interest, then to principal, continuing to assert a claim against the debtors for the full amount. The Bankruptcy Court for the District of Maryland allowed the claim, and the district court affirmed. One debtor appealed.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on July 10, 2007 , LexisNexis #0807-061

In re Ajay Sports Inc.

Ruling
Damages claim for at-will discharge was not subject to cap as not based on employment contract.
Procedural posture

The debtors filed an objection, based on 11 U.S.C. § 502(b)(7), objected to a creditor's proof of claim.

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opinion summary, case decided on June 12, 2007 , LexisNexis #0707-072

In re Connectix Corp.

Ruling
Landlord's capped claim for unpaid commercial rent allowed but less draws on letter of credit.
Procedural posture

Creditor, the former commercial landlord of the debtor, filed a claim in the amount of $2,335,283.99 based on the debtor's future lease obligations. The chapter 7 trustee, the debtor, and its major shareholders, objected to the amount of claim, and asserted that, under the correct application of 11 U.S.C. § 502(b)(6), the landlord's recovery from the bankruptcy estate to $446,246.99.

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opinion summary, case decided on May 10, 2007 , LexisNexis #0907-025

Travelers Cas. & Sur. Co. of Am. v. PG&E

Ruling
Surety's contractual claim for attorney's fees incurred litigating bankruptcy law issues should have been allowed absent statutory exception.
Procedural posture

Petitioner, a workers' compensation surety, filed a claim in the bankruptcy of respondent debtor, the surety's insured, and litigated certain language in the debtor's reorganization plan. Upon the grant of a writ of certiorari, the surety appealed the judgment of the Ninth Circuit, which affirmed the disallowance of the surety's amended claim for contractual attorney fees incurred in the bankruptcy litigation.

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opinion summary, case decided on March 20, 2007 , LexisNexis #0407-057

In re Taylor

Ruling
Retail consumer creditor's claims disallowed due to failure to submit required documentation.
Procedural posture

Debtor filed objections to four claims filed by creditor, an apparent assignee of retail consumer accounts. Debtor argued that creditor failed to demonstrate any enforceable agreement establishing a debt to it pursuant to 11 U.S.C. § 502(b), failed to meet the minimum requirements to establish a prima facie proof of claim pursuant to Fed. R. Bankr. P. 3001(c), failed to attach sufficient supporting documentation to the proofs of claim.

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opinion summary, case decided on March 05, 2007 , LexisNexis #0407-076

In re Lasky

Ruling
State procedural requirements are not incorporated into bankruptcy claims process and could not render debt unenforceable.
Procedural posture

Chapter 7 debtors objected to certain proofs of claims filed by general unsecured creditors. Debtors argued that the claims at issue should be disallowed under the "applicable law" language of 11 U.S.C. § 502(b)(1). The "applicable law" relied upon was Cal. Code Civ. Proc. § 454 and the Fair Debt Collections Practices Act ("FDCPA"), 15 U.S.C. §§ 1692, 1692a-1692p.

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opinion summary, case decided on February 22, 2007 , LexisNexis #0307-132

In re Tri-State Ethanol Co. LLC

Ruling
Bank allowed prepayment charge provided for in loan agreement with debtor.
Procedural posture

Before the court in debtor's chapter 7 matter was creditor bank's 11 U.S.C. § 506(b) Motion for Allowance of Prepayment Charge. The trustee and another financial company objected to the motion. By its motion, the bank sought payment of a prepayment charge referenced in various lending-related documents.

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opinion summary, case decided on November 13, 2006 , LexisNexis #1206-047

1500 Mineral Springs Assocs. LP v. Gencarelli

Ruling
Case remanded for review of debtor's level of financial distress and reconsideration of cap on creditors'claims.
Procedural posture

Appellant creditors sought review of three orders issued by a U.S. Bankruptcy Court, which: (1) denied their motion to dismiss appellee debtor's individual chapter 11 petition for lack of good faith; (2) limited the creditors'claims against a corporate debtor for past and future rent to the amount provided by 11 U.S.C. § 502(b)(6); and (3) authorized an interim distribution to the individual debtor. The issues were consolidated for review.

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opinion summary, case decided on November 08, 2006 , LexisNexis #1206-048

Cluff v. eCast Settlement

Ruling
Proofs of claim that were not prima facie valid were sufficient absent evidence from debtors to rebut merits.
Procedural posture

Appellant debtors filed separate bankruptcy cases. Appellee unsecured creditors filed proofs of claim in their respective cases. The debtors filed objections to many of the proofs of claim under 11 U.S.C. § 502(b) and Fed. R. Bankr. P. 3001. The bankruptcy court overruled the debtors'objections. The debtors appealed.

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opinion summary, case decided on September 29, 2006 , LexisNexis #1006-123