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Stickrath v. Globalstar Inc.

Plaintiff consumer sued defendant corporation under Cal. Bus. & Prof. Code § 17200 et seq., and Cal. Civ. Code § 1750 et seq., and alleged that its failure to disclose known defects in its service prevented him from using the service as intended. The consumer sought to represent a nationwide class of individuals who purchased a satellite telephone from the corporation between April 2003 and 2007. The corporation moved for summary judgment.
Ruling: 
Claims reasonably within consumer's contemplation prior to debtor corporation's discharge order were discharged.
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Commercial case opionion summary, case decided on December 22,2008, LexisNexis #0209-022

Lodge at Sonterra Ltd. v. PNC Fin. Servs. Group Inc.

Plaintiffs, 23 limited partnerships and an individual, sued defendants, a financial services company, a bank, and two limited liability companies (LLC), in state court. The financial services company and the bank removed the case to federal court pursuant to 28 U.S.C.S. §§ 1334(b) and 1452(a). They moved to transfer the case to bankruptcy court and for an order to implement Local Rule 83.4.1. The partnerships and the LLCs moved to remand.
Ruling: 
Claims related to bankruptcy of management company but that were not core matters remanded to state court.
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Commercial case opionion summary, case decided on December 17,2008, LexisNexis #0209-035

Walton v. Cornerstone Ministries Inc.

Appellant, the United States trustee, appealed from an order of the Bankruptcy Court for the Northern District of Georgia that denied without prejudice his request for the appointment of an examiner to investigate debtor's alleged improper business dealings. The parties disputed whether 11 U.S.C.S. § 1104(c)(2) was mandatory or discretionary.
Ruling: 
Appointment of examiner mandatory where chapter 11 debtor's fixed, liquidated unsecured debts exceeded $5 million threshold.
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Commercial case opionion summary, case decided on December 05,2008, LexisNexis #0109-086

Rederford v. US Airways Inc.

Plaintiff former employee sued defendant airline, alleging that she was terminated in violation of the Americans with Disabilities Act. The airline then filed for chapter 11 bankruptcy protection. The employee's claim was disallowed after she failed to file a written response or request a hearing in response to the airline's objection to the class of claims that included her claim. The airline then moved to dismiss for failure to state a claim.
Ruling: 
Employee's ADA claim was discharged due to failure to respond to debtor's objection to relevant class of claims.
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Commercial case opionion summary, case decided on November 19,2008, LexisNexis #1208-138

Burk v. Steve & Barrys Ill. LLC

Plaintiff customers sued defendant retail store and mall management company, alleging race and ethnicity discrimination in violation of 42 U.S.C.S. § 1981, defamation, and false imprisonment. The retail store filed a suggestion of bankruptcy upon the record, indicating that its parent company had filed for chapter 11 bankruptcy protection. The customers asked that proceedings against both the store and the mall management company be stayed.
Ruling: 
Discrimination case against store whose parent company filed for bankruptcy and mall management company stayed in full where store was necessary party.
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Commercial case opionion summary, case decided on November 13,2008, LexisNexis #1208-075

Shaw Group Inc. v. SWE&C Liquidating Trust (In re Stone & Webster Inc.)

Appellant, a buyer of debtors'assets, challenged an order of the bankruptcy court of the District of Delaware denying its motion to intervene under Fed. R. Civ. P. 24(a)(1), (2) and 11 U.S.C.S. § 1109(b) in an adversary the debtors, a company and its subsidiary, filed to contest their liability under the company's guarantee of any award against the subsidiary's joint venture in connection with an oil company contract.
Ruling: 
Bankruptcy court properly denied motion by purchaser of debtor's assets to intervene in adversary proceeding based on alleged subrogation rights to creditor's claim.
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Commercial case opionion summary, case decided on November 13,2008, LexisNexis #1208-103

In re UAL Corp.

The matter was before the court upon the cross-appeals of debtor and a terminated employee of the decision of the U.S. Bankruptcy Court for the Northern District of Illinois denying debtor's motion to hold the terminated employee and his counsel in contempt for suing debtor for employment discrimination in a California state court after confirmation of debtor's plan of reorganization was confirmed.
Ruling: 
Bankruptcy court erred in holding that terminated employee's postpetition, preconfirmation cause of action for discrimination was not barred by discharge.
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Commercial case opionion summary, case decided on October 29,2008, LexisNexis #1108-138

Krys v. Sugrue

Plaintiff trustee of a litigation trust which was assigned claims of the estate of a bankruptcy debtor, brought actions in state courts against defendants, agents and insiders of the debtor and others, including a bank, alleging that defendants aided and abetted the debtor's fraud. The actions were removed to federal court, the trustee moved to remand the actions, and the bank moved to refer claims against it to the bankruptcy court.
Ruling: 
Motion to remand fraud action directly related to debtors'bankruptcy denied.
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Commercial case opionion summary, case decided on October 23,2008, LexisNexis #1108-104

Scientific Weight Loss LLC v. U.S. Med. Care Holdings LLC

Plaintiffs, a franchisee with an allegedly exclusive license and three managing members, sued defendants, a trademark owner and related individuals and entities. Plaintiffs alleged twelve causes of action, including unfair competition, fraud, and breach of contract. Pending before the court were plaintiffs' application for a temporary restraining order (TRO) and plaintiffs' ex parte motion for leave to file a second amended complaint (SAC).
Ruling: 
Filing of amended complaint against debtor trademark owner violated stay.
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Commercial case opionion summary, case decided on October 22,2008, LexisNexis #1108-111

Humphrey-Baker v. United Airlines Inc.

Defendant, a former employer of plaintiff employee, filed a motion for summary judgment in the employee's action, which alleged that the employer violated California's Fair Employment and Housing Act (FEHA), Cal. Gov't Code § 12940, by discriminating against her based on her physical disability and by failing to offer reasonable accommodations.
Ruling: 
Employment discrimination action barred to extent predating debtor employer's plan confirmation.
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Commercial case opionion summary, case decided on October 21,2008, LexisNexis #1108-139

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