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In re Peninsular Oil Corp.

A claimant filed a motion pursuant to Fed. R. Bankr. P. 9006(b)(1) to allow a late-filed proof of claim in a chapter 11 debtor's case. The claimant also filed a motion for a stay pending reconsideration, and a motion for reconsideration, of a court order, which approved the sale of certain of the debtor's assets, the proposed distribution of the proceeds to holders of allowed claims, and the discharge and release of the debtor's managing agent.
Ruling: 
Creditor's preoccupation with business affairs was not excusable neglect that would allow filing of proof of claim two years after bar date.
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Commercial case opionion summary, case decided on October 27,2008, LexisNexis #0209-140

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

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

In re Privada Inc.

The movant creditors sought the dismissal of the involuntary bankruptcy case pursuant to 11 U.S.C.S. § 305 and 11 U.S.C.S. § 707(a), as having been filed in bad faith by the petitioning creditors, most of whom resided outside the United States. The movants asserted that the petitioning creditors were motivated to disrupt an interpleader action that was pending in the United States District Court for the Eastern District of New York.
Ruling: 
Involuntary case dismissed as filed in bad faith by petitioning creditors in order to disrupt interpleader action.
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Commercial case opionion summary, case decided on October 22,2008, LexisNexis #1108-125

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 Austin Temp. Servs.

Trustee filed an application, pursuant to 11 U.S.C.S. § 327, to retain and employ the attorneys for a special purpose, which was to represent the trustee by investigating and pursuing a legal malpractice action against the debtor's former counsel.
Ruling: 
Attorneys could not represent trustee in legal malpractice action having represented creditor in the underlying collection action.
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Commercial case opionion summary, case decided on October 21,2008, LexisNexis #0209-073

In re Starmark Clinic LP

The United States Trustee filed a motion to dismiss a chapter 11 debtor's case and/or convert it to a case under chapter 7 pursuant to 11 U.S.C.S. § 1112(b).
Ruling: 
Chapter 11 case of health care debtor ordered converted to chapter 7 in best interests of creditors.
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Commercial case opionion summary, case decided on October 20,2008, LexisNexis #1108-126

In re Teknek LLC

The chapter 7 trustee applied to employ an attorney and his law firm A judgment creditor of the debtor, and several persons or entities associated with the debtor filed objections to the employment of the attorney. The attorney had previously represented the judgment creditor in litigation against various parties related to the debtor, and the trustee sought to employ him to litigate against those same parties in an unrelated adversary action.
Ruling: 
Attorney who had represented estate's primary creditor could not be employed by trustee due to potential conflict of interest.
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Commercial case opionion summary, case decided on October 20,2008, LexisNexis #1208-060

In re Distributed Energy Sys. Corp.

The debtors filed for relief under chapter 11 of the Bankruptcy Code, and in July 2008, the court approved the sale of the assets of one debtor to a purchaser. The debtors filed a motion for authority to assume and assign a memorandum of understanding (MOU) between the debtor and a company and a confidentiality agreement between the debtor and another company, pursuant to 11 U.S.C.S. § 365.
Ruling: 
Debtor's motion to assume and assign memo of understanding and confidentiality agreement with creditor granted.
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Commercial case opionion summary, case decided on October 17,2008, LexisNexis #1108-080

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