Case Round Up

Strip-down and strip-off disallowed

In re Pistritto (Bankr. DE 2005) There is no principled method available to distinguish stripping off an undersecured lien from stripping down a wholly unsecured lien under section 506(d). Neither is allowed. "Substantial Abuse" must be found to deny pleading amenment

In re Fleming Companies, Inc. (Bankr. DE 2005)

The amount of prejudice needed to justify the denial of leave to amend a pleading is significant; it must be "substantial or undue." Inconvenience to a party or the strengthening of the movant's legal position does not provide sufficient prejudice. The nonmoving party must "demonstrate that its ability to present its case would be seriously impaired were amendment allowed." Where the need for amendment was caused by defendant's withholding of information, serious prejudice was not present.

Specific findings required to justify sale

In re Popp (9th Cir. BAP 2005) Real property of bankruptcy estate not subject to sale absent specific findings as to estate's ownership interest.

Annuity may be exempt as life insurance

In re Payne (9th Cir. BAP 2005) Single-premium annuity may qualify for bankruptcy exemption as life insurance under California state law only if primary purpose is insurance and not investment.