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National Retail Dev. Partners I LLC v. Maness (In re Mortgages Ltd.)

Plaintiff retail developer sued defendant chapter 11 debtor's investors in state court, alleging breach of contract on the ground that they assumed some of the debtor's obligation to fund a construction loan to the developer, and then failed to fully fund that loan. After the case was removed to the bankruptcy court, the developer moved to remand on three alternative grounds.
Ruling: 
Action against debtor's investors for failure to fund construction loan was a core proceeding.
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Commercial case opionion summary, case decided on December 11,2008, LexisNexis #0209-060

In re Berry Good LLC

Debtors filed petitions under chapter 11 of the Bankruptcy Code, and the cases were joined for administration. Debtors obtained permission to borrow $ 750,000 so they could conduct operations until the court approved a reorganization plan, and they proposed to pay a company (lender) that loaned them money postpetition, $ 288,000 on a pre-petition secured debt the lender was owed. The debtors'creditors filed objections.
Ruling: 
Chapter 11 debtor could not use postpetition loan proceeds to pay prepetition debt other than wages.
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Commercial case opionion summary, case decided on December 04,2008, LexisNexis #0209-114

Rollins v. Neilson (In re Cedar Funding Inc.)

Plaintiffs, investors in a second deed of trust created through the debtor on a third party's real property, filed an adversary proceeding requesting a judicial declaration that they had either an equitable or a legal interest in the note and deed of trust securing repayment. Defendant, the chapter 11 trustee, moved to dismiss the complaint, asserting the interest was subject to avoidance as a preferential transfer under 11 U.S.C.S. § 547(b).
Ruling: 
Bankruptcy court refused to dismiss complaint of investors seeking judicial declaration of an equitable or legal interest in debtor's property.
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Commercial case opionion summary, case decided on October 30,2008, LexisNexis #0209-120

In re Greg James Ventures LLC

A creditor filed an objection to confirmation of the debtor's proposed chapter 11 plan.
Ruling: 
Chapter 11 plan with ten year term confirmed as reasonable over creditor's objection.
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Commercial case opionion summary, case decided on September 24,2008, LexisNexis #1208-048

In re South Star Oil Co.

Several creditors and the United States Trustee filed motions to dismiss or convert to chapter 7, or alternatively to appoint a trustee under 11 U.S.C.S. § 1104. The principal creditor asserted a priority claim under 11 U.S.C.S. §§ 507(a)(2) and 503(b)(9) for the inventory supplied within 20 days of the petition date.
Ruling: 
Chapter 11 trustee appointed when debtor in possession's businesses were not profitable but conversion to chapter 7 would not benefit debtor or primary creditor.
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Commercial case opionion summary, case decided on September 15,2008, LexisNexis #1008-124

In re Prods. Intl Co.

Debtor corporation filed a petition under chapter 11 of the Bankruptcy Code and operated as a debtor-in-possession. Five months after it filed its petition, the debtor filed a motion to dismiss its bankruptcy action, pursuant to 11 U.S.C.S. § 1112(b). A person (part owner) who owned an interest in the debtor opposed the debtor's motion and filed a cross-motion for appointment of a chapter 11 trustee.
Ruling: 
Voluntary dismissal denied and chapter 11 trustee appointed due to improper transfers by majority owners to other entities they controlled.
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Commercial case opionion summary, case decided on September 02,2008, LexisNexis #1108-047

In re Valley Club Homes LLC

Creditor filed a motion to compel the debtor to assume or reject an executory contract. The debtor was a home builder which contracted with the creditor to use the creditor's existing water delivery system as a means to deliver water to its various building lots.
Ruling: 
Creditor could not compel assumption or rejection where contract was not executory as creditor had completed performance.
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Commercial case opionion summary, case decided on July 15,2008, LexisNexis #1208-110

In re Pro-Fit Holdings Ltd.

Petitioners, the joint administrators of three chapter 15 debtors, sought provisional relief under 11 U.S.C.S. § 1519 to apply 11 U.S.C.S. § 362 to stay the enforcement of a U.S. district court order, following judgment on the merits, attaching the U.S. assets of the debtors. Initially the administrators sought a temporary restraining order, but then modified their request. Two creditors were also before the court.
Ruling: 
Application of stay was appropriate provisional relief to bar enforcement of district court order pending recognition of debtors' foreign proceeding.
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Commercial case opionion summary, case decided on July 11,2008, LexisNexis #1108-130

Munding v. LeMaster & Daniels P.L.L.C. (In re Spokane Raceway Park Inc.)

Plaintiff chapter 11 trustee filed an adversary proceeding against defendant accounting firm, seeking a judgment determining the validity of a claim the firm filed against a corporate debtor's bankruptcy estate. The firm filed a third-party action against third-party defendant Washington limited partnership, claiming that the partnership had an obligation to indemnify it against any judgment the trustee obtained. The partnership moved to dismiss.
Ruling: 
Bankruptcy court voluntarily abstained from hearing indemnity action against third party already pending in state court.
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Commercial case opionion summary, case decided on July 09,2008, LexisNexis #0908-093

In re First Magnus Fin. Corp.

Claimants, former employees of a debtor, sought to recover as a priority administrative expense under 11 U.S.C.S. § 503(b)(1)(A)(ii) wages for pre-petition services and attorneys'fees as damages pursuant to the Worker Adjustment and Retraining Notification (WARN) Act, 29 U.S.C.S. § 2101 et seq. The debtor and the Official Committee of Unsecured Creditors opposed the motion.
Ruling: 
Creditors under Worker Adjustment and Retraining Notification Act (WARN) not entitled to administrative expense claims.
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Commercial case opionion summary, case decided on June 20,2008, LexisNexis #0708-115

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