In re 3dfx Interactive Inc.
Jun
01
2007
Ruling
Firm that represented chair of creditors' committee in fraudulent conveyance proceeding disqualified from acting as counsel to the committee.
Procedural posture
Movants, the chapter 11 debtor's official committee of equity security holders and the United States Trustee, filed motions, pursuant to 11 U.S.C. § 1103(b) and Cal. R. Prof. Conduct 3-310, to disqualify a law firm as special counsel to the debtors'official committee of unsecured creditors (creditors'committee).
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Court
:
- 11 U.S.C.
Diwa v. California Franchise Tax Board (In re Diwa)
May
18
2007
Ruling
State tax collection letter sent during pendency of chapter 13 plan properly found not to violate stay.
Procedural posture
Appellant bankruptcy debtor filed an adversary proceeding in bankruptcy court alleging that the California Franchise Tax Board ("FTB") violated the bankruptcy code automatic stay by sending the debtor a letter directing that she pay her tax debt. The bankruptcy court granted the FTB's cross-motion for summary judgment on the ground that the letter did not violate the automatic stay. The debtor appealed.
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Court
:
Qmect Inc. v. Burlingame Capital Partners II LP (In re Qmect Inc.)
May
17
2007
Ruling
Creditor held a valid claim for postpetition attorneys'fees incurred in defending adversary proceeding.
Procedural posture
Defendant moved for an award of postpetition attorneys'fees as part of its judgment in adversary proceedings filed by plaintiff debtors. At the time, Ninth Circuit precedent (the Fobian case) held that attorneys'fees were not recoverable for litigating issues peculiar to bankruptcy law. In its Travelers decision, the Supreme Court overruled the Fobian case. Following briefing, the bankruptcy court issued its ruling on defendant's motion.
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Court
:
- 11 U.S.C.
In re Connectix Corp.
May
10
2007
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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Court
:
- 11 U.S.C.
In re Swan
Apr
18
2007
Ruling
Debtor entitled to claim expenses for vehicle owned outright as well as full housing expense under IRS standards and to pay projected 60 month disposable income over 36 months.
Procedural posture
Creditor filed an amended objection to the confirmation of chapter 13 debtor's amended plan.
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Court
:
- FRBP
In re Sonicblue Inc.
Mar
26
2007
Ruling
Debtor's counsel disqualified for failure to disclose connection to senior bondholders who controlled creditors'committee.
Procedural posture
Bankruptcy debtors'counsel issued a prepetition opinion letter assuring payment to certain of the debtors'senior bondholders who effectively controlled the creditors'committee in the debtors'bankruptcy. After disclosure of the opinion letter, the U.S. Trustee moved to disqualify the debtors'counsel and to appoint a chapter 11 trustee, and a claims trader which acquired claims against the estate moved to convert the case to chapter 7.
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Court
:
- 11 U.S.C.
California Franchise Tax Bd. v. Joyce (In re Joyce)
Mar
23
2007
Ruling
Bankruptcy court erred in holding that state tax authority could not collect taxes where debtor's return was filed after claims bar date.
Procedural posture
Appellants, the State of California Franchise Tax Board and its executive director ("FTB"), sought review of an order from the bankruptcy court denying FTB's motion for summary judgment and granting summary judgment in favor of appellee chapter 13 debtors in the debtors'adversary action seeking a determination that the debtors'year 2000 taxes were discharged and an injunction enjoining the FTB from attempting to collect the year 2000 taxes.
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Court
:
- 11 U.S.C.
McColm v. Kistler
Mar
07
2007
Ruling
Bankruptcy court properly denied discharge in converted chapter 7 case filed within eight years of prior chapter 7 discharge.
Procedural posture
Appellant debtor appealed the decision of the bankruptcy court that denied her discharge pursuant to 11 U.S.C. § 727(a)(8).
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Court
:
In re Withers
Feb
26
2007
Ruling
Failure to obtain credit counseling did not require immediate dismissal.
Procedural posture
A chapter 7 bankruptcy debtor failed to obtain credit counseling as required under 11 U.S.C. § 109(h) to be eligible as a debtor in bankruptcy and failed to file documents required by 11 U.S.C. § 521(a)(1)(B). The bankruptcy court denied the trustee's motion for an order to show cause why the debtor should not be held in contempt for disobeying a court order, pending consideration of whether dismissal of the case was warranted or required.
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Court
:
- 11 U.S.C.
In re Keppert
Feb
15
2007
Ruling
Attorneys' fee application denied due to inadequate notice to creditors and illegible time records.
Procedural posture
The attorney who represented two bankruptcy debtors filed an application with the court seeking an award of $21,977.10 in attorneys'fees and $136.74 in costs for his representation of the debtors. The case was originally filed under chapter 7, it was later converted to a chapter 13 case, and it was changed back into a chapter 7 case in 2006. Both of the debtors died while the bankruptcy proceedings were pending.
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Court
: