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In re Sudano Inc.

Over the objection of the controlling principal of corporate bankruptcy debtors, the debtors' apartment buildings were sold and the interests of shareholders were extinguished. The principal subsequently died and the son of the principal, on behalf of the surviving spouse of the principal, moved for an award of damages to the spouse alleging that the bankruptcy trustee failed to provide notice to the spouse and mismanaged the debtors' affairs.
Ruling: 
Son of corporate debtor's deceased principal lacked capacity to represent non-shareholder mother regarding trustee's alleged mismanagement of case.
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Commercial case opionion summary, case decided on July 30,2008, LexisNexis #0808-140

White Oak Corp. v. American Intl Group Inc. (In re National Eastern Corp.)

One plaintiff and one defendant (objecting parties) filed motions to abstain and to remand to state court the captioned adversary proceeding, which had been removed to the bankruptcy court pursuant to 28 U.S.C.S. § 1452(a). The basis of the complaint was that defendants, sureties and attorneys, rather than acting on the behalf of the plaintiffs, the debtor and its affiliates under an indemnity agreement, acted in their own self-interest.
Ruling: 
Proceeding against debtor contractor's sureties and attorneys for acting in self-interest under indemnity agreement remanded to state court.
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Commercial case opionion summary, case decided on July 25,2008, LexisNexis #0808-088

Silverman v. Sound Around Inc. (In re Allou Distribs.)

Plaintiff chapter 7 trustee's amended adversary complaint against defendant transferee pleaded causes of action for actual fraud pursuant to N.Y. Debt. & Cred. Law § 276, constructive fraud pursuant to N.Y. Debt. & Cred. Law §§ 273, 274, 275, and unjust enrichment. Before the court was the transferee's amended motion for judgment dismissing the action pursuant to Fed. R. Civ. P. 52.
Ruling: 
Trustee's avoidance proceeding against transferees of property supported by qualified triggering creditors.
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Commercial case opionion summary, case decided on July 25,2008, LexisNexis #0908-068

In re Dana Corp.

A corporate debtor and its affiliated companies filed a petition for relief under chapter 11 of the Bankruptcy Code. The court established a deadline for filing proofs of claims, and 21 months after that deadline passed, movant claimant filed a motion for an order allowing him to amend an informal proof of claim or, in the alternative, permitting him to file a late-filed proof of claim. The debtors opposed the motion.
Ruling: 
Late filed proof of claim disallowed due to prejudice to emerged debtor and other creditors.
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Commercial case opionion summary, case decided on July 23,2008, LexisNexis #0908-128

Bondi v. Capital & Fin. Asset Mgmt.

Appellants challenged an order of the United States District Court for the Southern District of New York, denying a motion under 11 U.S.C.S. § 304 (repealed) by appellant debtor in foreign bankruptcy proceedings, to enjoin securities fraud actions brought against it in the United States.
Ruling: 
District court properly denied motion of debtor in foreign proceeding to enjoin U.S. securities fraud action.
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Commercial case opionion summary, case decided on July 22,2008, LexisNexis #0808-056

In re Eldercare

The debtors filed separate voluntary petitions for relief under chapter 11. The debtors sought to sell or otherwise transfer or transition a large portion of their nursing facility assets and business operations to the proposed transferees, and permit the State to establish receiverships for several additional nursing facilities. The committee of unsecured creditors filed a timely objection to the transfer motions.
Ruling: 
Sale of debtor's nursing home assets and operations supported by sound business reasons approved.
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Commercial case opionion summary, case decided on July 04,2008, LexisNexis #1008-005

In re Monahan Ford Corp.

The trustee for a chapter 7 debtor asserted claims against a law firm for legal malpractice in their representation of the then-chapter 11 debtor-in-possession. The trustee filed a motion for partial summary judgment as to all issues except damages and the firm filed a cross motion for summary judgment.
Ruling: 
Law firm's failure to timely assume leases of seek extension was negligent as a matter of law.
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Commercial case opionion summary, case decided on July 02,2008, LexisNexis #0808-061

Daly v. Konover Constr. Corp. (In re Homesteads Cmty. at Newtown LLC)

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant creditor, alleging that the creditor improperly asserted an invalid and unenforceable mechanics' lien against real property of the bankruptcy debtor. The trustee applied for appointment of a law firm to represent the estate in the proceeding pursuant to 11 U.S.C.S. § 327, and the creditor objected on the ground of conflict of interest.
Ruling: 
Law firm could not represent estate in challenge to creditor's mechanics' lien unless it ceased to represent debtor's principal and equity holder.
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Commercial case opionion summary, case decided on June 26,2008, LexisNexis #0708-132

M Fabrikant & Sons Inc. v. Longs Jewelers Ltd.

Plaintiff debtor voluntarily filed for chapter 11. Subsequently, it filed a complaint against defendant alleging it sold defendant $ 2,815,911 in diamonds and jewelry. Debtor sought $ 1,647,031 for goods sold to defendant prior to the petition date. Defendant filed its answer and jury demand. In its answer, defendant asserted defenses and counterclaimed. Before the court was defendant's motion to withdraw the reference from the bankruptcy court.
Ruling: 
Debtor's action for breach of prepetition contract was a non-core proceeding for which withdrawal of reference was appropriate.
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Commercial case opionion summary, case decided on June 26,2008, LexisNexis #0708-128

In re Dana Corp.

A creditor filed a motion for the allowance of an administrative expense claim, pursuant to 11 U.S.C.S. § 503(b)(3), (4), consisting of fees and expenses incurred in the debtors' chapter 11 cases. The United States Trustee and committee objected.
Ruling: 
Creditor whose proposals did not lead directly to global settlement not entitled to administrative expense claim.
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Commercial case opionion summary, case decided on June 19,2008, LexisNexis #0708-114

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