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northern district of georgia

Unsecured Claims Admr v. Franks (In re Centennial HealthCare Corp.)

Ruling
Objection to creditor's state court punitive damages claim was rejected since punitive damages claims are permissible though often subordinated claims under Code sections.
Procedural posture

Respondent judgment creditor filed a claim against the debtors alleging that the debtors were liable to her pursuant to a judgment from a state court in Massachusetts in the amount of $114,148, which included an assessment of punitive damages. Movant, unsecured claims administrator, objected to the claim because he contended that punitive damages were not allowed in a bankruptcy context.

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opinion summary, case decided on August 29, 2005 , LexisNexis #0106-044

Stephens v. Park Villas Homeowners Assn (In re Stephens)

Ruling
Debtors were allowed to avoid a judicial lien because it impaired an exemption to which the debtors would have been entitled in the absence of any liens.
Procedural posture

Debtors, a husband and wife, filed a motion to avoid a lien in a bankruptcy proceeding. Respondent homeowners association objected to the motion.

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opinion summary, case decided on August 26, 2005 , LexisNexis #0106-080

In re Value Music Concepts

Ruling
Creditor representative could pursue preference avoidance actions on debts assumed under a settlement agreement between debtors and creditors two weeks before chapter 11 filings.
Procedural posture

Plaintiff, in his capacity as the creditor representative appointed pursuant to 11 U.S.C. § 1123(b)(3) under debtors'confirmed chapter 11 plan, sued defendant creditors, seeking to recover, pursuant to 11 U.S.C. § 547(b), alleged preferential transfers for the benefit of unsecured creditors. Defendants moved for summary judgment.

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opinion summary, case decided on August 22, 2005 , LexisNexis #0206-015

Cadle Co. v. Taras (In re Taras)

Ruling
Debtor was denied discharge due to debtor's material omission from debtor's schedules of an interest as a trust beneficiary.
Procedural posture

Plaintiff creditor filed a complaint objecting to the discharge of defendant debtor pursuant to 11 U.S.C. § 727(a)(2) and (4).

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opinion summary, case decided on August 19, 2005 , LexisNexis #0106-100

IndyMac Bank F.S.B. v. Mitchell (In re Mitchell)

Ruling
Summary judgment was denied to a creditor claiming loan obligation nondischargeability since the creditor presented insufficient evidence regarding alleged false statements in the loan application and reliance on these statements.
Procedural posture

Plaintiff creditor filed an adversary proceeding against defendant debtor, claiming that the debtor's obligation under a construction loan entered into between the debtor and the creditor was nondischargeable under 11 U.S.C. § 523(a)(2)(A), (a)(2)(B), or (a)(6). The creditor filed a motion for summary judgment on all claims.

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opinion summary, case decided on August 16, 2005 , LexisNexis #0106-082

Richardson v. Pilgrim (In re Pilgrim)

Ruling
Discharge was denied where the debtors failed to provide accounting of cash settlement received three months prior to filing or respond to trustee's inquiries or default judgment motion.
Procedural posture

Plaintiff, a Chapter 7 trustee, sought denial of the debtors' discharges pursuant to 11 U.S.C. § 727(a)(2)(A), (a)(2)(B), (a)(3), (a)(4)(B), and (a)(5). The trustee moved for a default judgment, which the bankruptcy court denied without prejudice. The trustee, having re-served the complaint and summons and filed an affidavit addressing the debtors' military status, renewed his motion for a default judgment.

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opinion summary, case decided on August 12, 2005 , LexisNexis #0106-101

Bellows v. Froug (In re Froug)

Ruling
Former wife was granted partial summary judgment against debtor in finding spousal and child support were not dischargeable but postponed uncertain determination regarding second mortgage.
Procedural posture

Defendant debtor commenced a chapter 7 bankruptcy proceeding. Plaintiff former wife contended that certain obligations were not dischargeable in bankruptcy under 11 U.S.C. § 523(a)(5). She filed a motion for partial summary judgment or a judgment on the pleadings.

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opinion summary, case decided on August 12, 2005 , LexisNexis #0106-087

Citibank (South Dakota) N.A. v. Han (In re Han)

Ruling
Portion of debtor's credit card debt was deemed nondischargeable due to debtor's fraud.
Procedural posture

Plaintiff credit card company filed an adversary proceeding against defendant debtor alleging that the debtor's obligation to the credit card company was not dischargeable under 11 U.S.C. § 523(a)(2)(A). After filing an amended complaint, the credit card company filed a renewed motion for a default judgment.

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opinion summary, case decided on August 08, 2005 , LexisNexis #0106-083

In re Kenard

Ruling
Debtor's case was dismissed and the court validated a foreclosure sale since the debtor filed two chapter 13 petitions in bad faith by accepting property title and then immediately filing to try to stop foreclosure.
Procedural posture

Movant deed holder filed a motion to validate a foreclosure sale in a bankruptcy proceeding.

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opinion summary, case decided on August 04, 2005 , LexisNexis #0206-003

In re Bush

Ruling
Debtor failed to establish a likelihood of success on the merits to obtain a stay pending the resolution of the debtor's appeal of a lift stay order.
Procedural posture

The debtor filed a notice of appeal of an order entered by bankruptcy court (the lift stay order), which denied the debtor's motion for recusal and granted the motion for relief from the automatic stay filed by the creditor. The debtor filed the current motion seeking a stay of the lift stay order pending the resolution of his appeal.

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opinion summary, case decided on August 03, 2005 , LexisNexis #0106-128