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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

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

GE Capital Corp. v. Future Media Prods.

Debtor sought relief in the bankruptcy court for the Central District of California. Pursuant to a stipulation, an oversecured creditor was paid $ 5,728,584, which included interest at the default rate. The creditors' committee objected to the default rate interest, and the bankruptcy court ordered the oversecured creditor to return the default rate differential to the debtor. The oversecured creditor appealed.
Ruling: 
Creditor paid in full pursuant to stipulation rather than through chapter 11 plan was entitled to default rate of interest.
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Commercial case opionion summary, case decided on October 24,2008, LexisNexis #1108-085

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

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

New Cingular Servs. v. Burkhart (In re Wire Comm. Wireless Inc.)

Appellant, a claimant in a chapter 7 debtor's bankruptcy case, challenged a decision of the Bankruptcy Court for the Eastern District of California, which denied the claimant's motion to stay appellee trustee's adversary proceeding against it in order to permit completion of an aborted arbitration hearing.
Ruling: 
Core nature of dispute did not preclude compelling arbitration pursuant to creditor's agreement with debtor.
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Commercial case opionion summary, case decided on September 16,2008, LexisNexis #1108-018

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

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