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Circuit Court

G.H. Leidenheimer Baking Co. v. Sharp (In re SGSM Acquisition Co. LLC)

Ruling
Payments made to the debtor's suppliers during the preference period were avoidable transfers since they were not made in the ordinary course of business subject to a portion of the payments not being preferential since subsequent new value was provided.
Procedural posture

Appellant suppliers brought a consolidated appeal from the district court, challenging the lower courts'treatment of preference payments each received from debtor grocery store chain before it filed bankruptcy.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on February 06, 2006 , LexisNexis #0206-043

Enron Corp. v. The New Power Co. (In re The New Power Co.)

Ruling
Chapter 11 plan confirmation was affirmed since the modifications in the second amended plan were not material and adverse to the creditor's interests and, thus, the court could reasonably consider the creditor's vote in favor of the first amended plan as a vote for the second amended plan.
Procedural posture

Plaintiff, holder of an equity interest in debtor, challenged the District Court for the Northern District of Georgia's affirmance of the bankruptcy court's confirmation of the Second Amended Plan ("SAP") submitted by defendants, debtor, et al., in their chapter 11 reorganization.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on February 03, 2006 , LexisNexis #0206-047

Burgess v. Sikes (In re Burgess)

Ruling
Crop-disaster relief payments were not estate property since the legislation providing for the payments was enacted after the filing.
Procedural posture

Appellant bankruptcy estate challenged the decision of the district court. A panel of the court of appeals reversed the prior decision of denying a motion for turnover.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on January 27, 2006 , LexisNexis #0206-010

Roberts v. Pierce (In re Pierce)

Ruling
Order regarding proof of claim was affirmed since the bankruptcy court did not abuse its discretion in setting the particularities of notice procedure, including not conducting an evidentiary hearing.
Procedural posture

Appellant claimant challenged an order of the district court, which affirmed a bankruptcy court's order granting in part and disallowing in part a proof of claim against appellee debtor without holding an evidentiary hearing in a voluntary chapter 13 bankruptcy proceeding.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on January 25, 2006 , LexisNexis #0206-001

Roberts v. Pierce (In re Pierce)

Ruling
Order regarding proof of claim was affirmed since negative notices are permissible under the Code.
Procedural posture

Appellant claimant challenged an order of the district court, which affirmed a bankruptcy court's order granting in part and disallowing in part a proof of claim against appellee debtor without holding an evidentiary hearing in a voluntary chapter 13 bankruptcy proceeding.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on January 25, 2006 , LexisNexis #0206-024

Cage v. Wyo-Ben Inc. (In re Ramba Inc.)

Ruling
Payment to an unsecured creditor was an avoidable transfer since the payment was not made according to ordinary business terms but rather was made on invoices older than the industry standard for making payment of 120 days.
Procedural posture

Two months before bankruptcy, a buyer received the debtor's assets free of liens, paid off the debtor's under secured lender, and paid the rest of the consideration to 10 defendant unsecured creditors. The debtor paid an 11th defendant unsecured creditor. The district court entered summary judgment against plaintiff trustee on an 11 U.S.C. § 547(b) preference action. The trustee appealed.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on January 23, 2006 , LexisNexis #0206-016

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

Cage v. Wyo-Ben Inc. (In re Ramba Inc.)

Ruling
Sale of debtor's assets was not an avoidable transfer since property for which the debtor had no equitable interest is not estate property.
Procedural posture

Two months before bankruptcy, a buyer received the debtor's assets free of liens, paid off the debtor's under secured lender, and paid the rest of the consideration to 10 defendant unsecured creditors. The debtor paid an 11th defendant unsecured creditor. The district court entered summary judgment against plaintiff trustee on an 11 U.S.C. § 547(b) preference action. The trustee appealed.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on January 23, 2006 , LexisNexis #0206-012

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

Jacksonville Airport Inc. v. Michkeldel Inc.

Ruling
Creditor was not entitled to vote on debtor's reorganization plan since the debtor had objected to the creditor's claim.
Procedural posture

In defendant debtor's chapter 11 bankruptcy proceeding, plaintiff creditor voted to reject the debtor's reorganization plan. The debtor refused to count the creditor's vote, maintaining that the creditor's claim was not allowed. The bankruptcy court held that debtor did not have to count the creditor's vote, and, on the creditor's appeal, the district court affirmed. The creditor appealed.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on January 19, 2006 , LexisNexis #0206-019