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3rd circuit

Elliott v. Kiesewetter (In re Kiesewetter)

Ruling
Court maintained an automatic stay since a withdraw of reference motion was pending that could affect title and determine whether the property was estate property, but the court required adequate assurances be provided.
Procedural posture

After respondent debtors filed for chapter 11 bankruptcy relief, movant judgment creditors filed a motion for relief from an automatic stay. The debtor objected. The bankruptcy court held a hearing on the motion.

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opinion summary, case decided on February 01, 2006 , LexisNexis #0206-066

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

In re DiPinto

Ruling
Waiver of credit counseling requirement was denied, and the case was dismissed since the debtor had failed to demonstrate that the debtor had sought counseling in advance of filing.
Procedural posture

Debtor filed a chapter 13 petition without having first obtained credit counseling as required by the Bankruptcy Abuse Prevention and Consumer Protection Act. In lieu of a certificate reflecting completion of credit counseling, debtor's counsel filed a request for a waiver of that requirement, pursuant to 11 U.S.C. § 109(h)(3).

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opinion summary, case decided on January 30, 2006 , LexisNexis #0206-053

HLI Creditor Trust v. Metal Techs. Inc. (In re Hayes Lemmerz Intl Inc.)

Ruling
Transfers made within credit terms did not insure that such transfers were made in the ordinary course of business, and, thus, some of the debtor's payments were deemed preferential transfers.
Procedural posture

Plaintiff, a creditor trust, commenced an adversary proceeding, seeking to avoid and recover pursuant to 11 U.S.C. §§ 547 and 550, certain allegedly preferential transfers made by debtors to defendant, the transferee. The matter was before the court for decision following trial.

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opinion summary, case decided on January 26, 2006 , LexisNexis #0206-079

Hutchinson v. Del. Sav. Bank FSB

Ruling
Debtors were not bound following a chapter 7 conversion to the estate value stated in their chapter 13 plan since the debtors'claims against the lender were not listed in their chapter 13 plan but later in their chapter 7 case.
Procedural posture

Plaintiff debtors sued defendant lender for fraud, breach of contract, and violation of the New Jersey Consumer Fraud Act ("NJCFA") and sued defendant loan servicing companies for negligence/intentional tort, breach of contract, violation of the NJCFA, and violation of the Real Estate Settlement Procedures Act ("RESPA"). Defendants moved to dismiss.

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opinion summary, case decided on January 25, 2006 , LexisNexis #0206-005

Hutchinson v. Del. Sav. Bank FSB

Ruling
Debtors'claims against the lender were not barred by confirmation of their chapter 13 plan since conversion to chapter 7 removed the res judicita effect of that chapter 13 plan.
Procedural posture

Plaintiff debtors sued defendant lender for fraud, breach of contract, and violation of the New Jersey Consumer Fraud Act ("NJCFA") and sued defendant loan servicing companies for negligence/intentional tort, breach of contract, violation of the NJCFA, and violation of the Real Estate Settlement Procedures Act ("RESPA"). Defendants moved to dismiss.

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opinion summary, case decided on January 25, 2006 , LexisNexis #0206-021

Stoe v. Flaherty

Ruling
Court ruled that mandatory abstention applied to cases removed to federal court including the case of a former officer for unpaid severance benefits since the case was related to but did not arise in a bankruptcy case, did not arise under the Code, and was started in state court.
Procedural posture

Plaintiff former officer sought review of a decision of the district court, which denied the officer's motion for mandatory abstention under 28 U.S.C. § 1334 after defendants, current and former officers of the officer's former employer, removed the officer's action for unpaid severance benefits to federal court. Defendants were also ultimately successful on the merits of the case.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on January 23, 2006 , LexisNexis #0206-023

Will v. Northwestern Univ. (In re Nutraquest Inc.)

Ruling
Court did not abuse its discretion in finding that a tort settlement met Rules requirements and state tort law.
Procedural posture

Appellant university filed a third party complaint seeking contribution from various makers of ephedra products after it was sued following the death of one of its football players. Appellee debtor, one of the makers, later filed for bankruptcy protection. The university appealed after the district court upheld the bankruptcy court's approval of a settlement between appellee and the player's estate.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on January 20, 2006 , LexisNexis #0206-025

Gruver v. United States Dept of the Treasury (In re Gruver)

Ruling
Debtors failed to show that the IRS had intentionally violated the automatic stay since the IRS reversed its offsetting of the debtors' refund against a prior tax liability once it became aware of the bankruptcy case.
Procedural posture

Plaintiffs, joint bankruptcy debtors, brought an adversary proceeding against defendant United States, alleging that the government violated the automatic bankruptcy stay by offsetting the debtors'income tax refund against the prior tax liability of one of the debtors.

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opinion summary, case decided on January 20, 2006 , LexisNexis #0306-117

In re Nobex Corp.

Ruling
Sale-related incentive pay met Code requirements.
Procedural posture

A bankruptcy debtor in possession, a development stage biopharmaceuticals company, sought to preserve its assets while pursuing a sale of substantially all of its assets pursuant to an orderly sale process. The debtor moved for authorization to pay sale-related incentives to senior management officials.

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opinion summary, case decided on January 19, 2006 , LexisNexis #0406-005