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In re Plymouth Rubber Co.

The debtors, two companies that were being jointly administered in bankruptcy proceedings, filed a motion to allow one of the debtors to make payments pursuant to an employee retention plan so that the debtors could pay benefits owed to the employees once they are terminated during the wind-down of the debtor's manufacturing operations. The debtors claimed the expense was entitled to administrative expense priority under 11 U.S.C. § 503(b)(1).
Ruling: 
Court granted the debtors' motion for authority to make payments under the employee retention plan as an administrative claim so that the debtors could make severance payments when they became due.
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Grosser v. Lang (In re Northeastco Door & Millwork Co.)

Plaintiff seller of total interest in defendant corporate bankruptcy debtor brought an action in state court against the debtor and defendant principal of the debtor, alleging breach of the contract of sale. The bankruptcy trustee removed the action to the bankruptcy court after the debtor filed its bankruptcy petition, and the seller moved for abstention and to remand the action to state court.
Ruling: 
Court abstained from hearing the breach of contact action and remanded it back to the state court since the bankruptcy court could not conduct a jury trial without consent of both parties, which the court did not have.
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Abboud v. Ground Round Inc. (Ground Round Inc.)

Appellee landlord commenced an adversary proceeding to determine appellant chapter 11 debtor's interest in a liquor license previously used in its operation of a restaurant at a leased premises. The bankruptcy court granted the landlord summary judgment, holding that the landlord was entitled to enforce a retransfer provision under the lease. The debtor appealed.
Ruling: 
Landlord was entitled to enforce a lease's retransfer of a liquor license provision, and the debtor's argument that the landlord had an alternative right of payment remedy available that constituted a dischargeable claim was rejected.
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Stone v. Casiello (In re Casiello)

After the bankruptcy court entered judgment in favor of defendant debtor, the debtor then filed a motion for sanctions pursuant to 11 U.S.C. § 105(a), 28 U.S.C. § 1927, and Fed. R. Bankr. P. 9011. The bankruptcy court ruled that the motion was untimely. The U.S. District Court remanded the matter, holding that there were no time constraints under 28 U.S.C. § 1927.
Ruling: 
Court held that it had jurisdiction to impose sanctions for attorneys'unreasonable prolonging of proceedings.
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In re Penney

The chapter 7 trustee filed an application to employ counsel. Proposed counsel and his firm represented a secured creditor with a claim against the bankruptcy estate. The issue was whether an actual conflict of interest existed with respect to counsel's dual representation of the creditor and the estate.
Ruling: 
Court denied a trustee's application to employ counsel due to an actual conflict of interest in counsel representing a creditor and the estate.
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Tift County Hosp. Auth. v. Nies (In re Nies)

An adversary proceeding was before the court on a motion for summary judgment filed by plaintiff creditor through which it sought a judgment that a debt owed to it by defendant debtor was a nondischargeable consolidated student loan under 11 U.S.C. § 523(a)(8). Debtor opposed the motion.
Ruling: 
Court denied hospital creditor's motion to declare loan to doctor debtor in exchange for the doctor providing four years of service as nondischargeable since the loan was not an education loan.
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In re Dilley

Chapter 7 debtor filed a motion to dismiss the involuntary chapter 7 petition filed against the debtor pursuant to 11 U.S.C. § 303(b)(1) by petitioners, the estate of his deceased wife and the conservator for each of her two surviving children. The court treated the motion as one for summary judgment because matters outside the pleadings were offered for consideration. Debtor also filed a request for abstention.
Ruling: 
Debtor's not guilty plea in criminal homicide case raised liability dispute warranting dismissal of an involuntary chapter 7 case filed by the deceased's estate and children.
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In re Coastal Bus & Equip. Sales Inc.

Creditor IRS moved for relief from the automatic stay to setoff pre-petition tax overpayments of the debtor against its unpaid tax liabilities incurred during the pendency of its chapter 11 case, including withholding, Federal Insurance Contributions Act ("FICA"), and Federal Unemployment Tax Act taxes.
Ruling: 
IRS was granted right to apply prepetition tax liability refunds against unpaid postpetition tax liability incurred during the debtor's chapter 11 case under a right of recoupment.
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Lorenz v. Am. Educ. ServicesPennsylvania Higher Educ. Assistance Agency (In re Lorenz)

Plaintiff debtor filed an adversary proceeding against defendant creditor seeking a determination that the debtor's student loans were dischargeable due to "undue hardship" under 11 U.S.C. § 523(a)(8). These student loans were used to finance the debtor's podiatry school education. Due to changes in the field, the debtor abandoned podiatry and chose instead to pursue a career as a registered nurse. The debtor was unemployed at the time of trial.
Ruling: 
Student loans were deemed dischargeable due to undue hardship for a debtor who faced having to switch careers to increase income.
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Fanaras v. Carpenter (In re Fanaras)

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant debtor pursuant to 11 U.S.C. § 727(d), seeking to revoke the discharge entered in favor of the debtor. The trustee moved for summary judgment as to all counts in the complaint. The debtor cross moved for summary judgment, seeking to dismiss all counts on the basis that they were time barred.
Ruling: 
Debtor was granted partial summary judgment since the one-year statute of limitations for requesting revocation of discharge is not subject to equitable tolling.
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