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In re Renaissance Hosp. -- Grand Prairie Inc.

A patient care ombudsman for chapter 11 debtors filed two applications pursuant to 11 U.S.C.S. § 105, § 330, and § 333, seeking court approval to employ the ombudsman's hospital management company as his advisor so that it could be paid from estate assets and to employ counsel to be paid from estate assets.
Ruling: 
Appointment of professionals to assist health care ombudsman approved.
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Commercial case opionion summary, case decided on December 31,2008, LexisNexis #0209-004

In re Mravik

The trustee, asked the court to dismiss debtor's chapter 7 petition for abuse under 11 U.S.C.S. § 707(b)(1), 707(b)(2), or 707(b)(3). At issue was whether debtor's ongoing contribution to a so-called "I.R.C. § 457" pension plan sponsored by her public employer constituted "abuse" authorizing dismissal of her petition.
Ruling: 
Debtor's ongoing contribution to 457 pension plan did not require dismissal for abuse.
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Consumer case opionion summary, case decided on December 31,2008, LexisNexis #0209-080

In re Lowery

Eight years after a bankruptcy debtor was granted a discharge and her case was closed, the debtor moved to reopen the case pursuant to 11 U.S.C.S. § 350(b) in order to schedule a previously undisclosed personal injury claim for administration in the case.
Ruling: 
Bankruptcy court declined to reopen case to administer debtor's previously concealed personal injury claim.
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Consumer case opionion summary, case decided on December 31,2008, LexisNexis #0209-026

Shulkin Hutton Inc. v. Treiger (In re Owens)

Appellant, a law firm creditor of a debtor, sought review of a decision of the Ninth Circuit Bankruptcy Appellate Panel (BAP), which affirmed a bankruptcy court's dismissal of the debtor's chapter 11 case based on a determination that it was filed in bad faith under 11 U.S.C.S. § 1112(b).
Ruling: 
Chapter 11 case filed just prior to court ordered sale of home in debtor's divorce properly dismissed for bad faith.
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Consumer case opionion summary, case decided on December 31,2008, LexisNexis #0209-017

In re Dovetail Inc.

A creditor filed a motion, pursuant to Fed. R. Civ. P. 12(b)(6) and 11 U.S.C.S. § 1112(b), to dismiss a debtor's small business chapter 11 case for cause.
Ruling: 
Dismissal for failure to file plan denied as not in best interests of creditors.
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Commercial case opionion summary, case decided on December 31,2008, LexisNexis #0409-129

In re Frankfort Tower Indus. Inc.

In a consolidated proceeding, the debtors sought relief under chapter 11 of the Bankruptcy Code and a plan of reorganization was confirmed. The debtors'disbursing agent filed a notice of intent to commence a fourth interim distribution, and the official creditors'committee objected to the notice.
Ruling: 
Creditors'committee's objection to interim distribution overruled as creditors were bound by terms of confirmed plan.
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Commercial case opionion summary, case decided on December 30,2008, LexisNexis #0209-139

In re Wait

The chapter 7 trustee objected to the debtor's claim of a homestead exemption under Iowa Code §§ 499A.18, 561.16, 561.19, and 561.20. The debtor moved for abandonment of property, asserting that the mortgage encumbering the property was an executory contract under 11 U.S.C.S. § 365(d)(1), and because the trustee did not assume or reject it, it was deemed rejected.
Ruling: 
Mortgage is not an executory contract and need not be assumed or rejected by trustee.
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Consumer case opionion summary, case decided on December 30,2008, LexisNexis #0209-006

Parker v. Pettigrew (In re Osterwalder)

Plaintiff trustee filed an adversary proceeding against defendants, an attorney and the professional businesses for which he worked, alleging a legal malpractice claim. The trustee's claims arose out of the attorney's legal representation of the debtor in the underlying chapter 7 bankruptcy case and an earlier chapter 11 bankruptcy case. The trustee moved for default judgment under Fed. R. Civ. P. 55, made applicable by Fed. R. Bankr. P. 7055.
Ruling: 
Default judgment granted to trustee in legal malpractice proceeding against debtor's attorneys.
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Consumer case opionion summary, case decided on December 30,2008, LexisNexis #0909-026

Conley v. Smith (In re Smith)

Defendant debtor appealed from an order of the bankruptcy court for the Northern District of Ohio that granted summary judgment to plaintiff creditor, an attorney who had represented the debtor in a prior criminal proceeding, in a nondischargeability action under 11 U.S.C.S. § 523(a)(2)(A). The debtor challenged the holding that he was collaterally estopped from relitigating the issue of fraud.
Ruling: 
State court fraud determination was binding on bankruptcy court in nondischargeability proceeding.
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Consumer case opionion summary, case decided on December 30,2008, LexisNexis #0209-010

Parks v. FIA Card Servs. (In re Marshal)

The district court for the District of Kansas affirmed a decision of a bankruptcy court that payments made by debtors within 90 days preceding the filing of their chapter 7 petition from one set of credit card accounts to credit card accounts with appellee, the creditor's successor, were not avoidable preferential transfers under 11 U.S.C.S. § 547(b) as urged by appellant, the bankruptcy trustee. The trustee appealed.
Ruling: 
Bankruptcy and district courts erred in holding that credit card balance transfers were not avoidable preferential transfers.
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Consumer case opionion summary, case decided on December 30,2008, LexisNexis #0209-030

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