Small Case Roundup

8th Circuit Briggs v. LaBarge (03/24/06 - No. 05-6054) Bankruptcy Appellate Panel. An order granting a bankruptcy trustee's motion for an order denying attorney's fees and disgorgement of certain fees is affirmed where there was no error in a finding that a bankruptcy attorney's dual representation of a debtor and a bank was an impermissible conflict of interest. 9th Circuit Sherman v. Sec. & Exch. Comm'n (03/23/06 - No. 03-56601) A decision reversing a bankruptcy court's denial of a motion brought by the SEC to dismiss debtors' bankruptcy petition is reversed where, although the SEC had standing and the case was not moot, the bankruptcy petition could not, under established precedent, be dismissed for "cause" under 11 U.S.C. section 707(a). 11th Circuit Amend v. 485 Properties, LLC (03/22/06 - No. 04-14635) Based on prior decisions entered in this case and based on the Georgia Supreme Court's answer to the certified question about whether procuring cause is an element of a quantum meruit claim, the district court's grant of summary judgment on plaintiff's quantum meruit claim for brokerage services is affirmed.

More, more, more ... how do like it? how do you like it?

New Higher BK Fees

Lots O' Cases (in honor of St. Patrick's day a week ago)

Failure to show adequate exigent circumstances results in dismissal

Dixon v. LaBarge (In re. Dixon), 2006 Bankr. LEXIS 196 (8th Cir. B.A.P. Feb. 17, 2006)

Debtor submitted certification failing to certify exigent circumstances that would merit statutory waiver of pre-filing briefing requirement per §109 (h)(3)(i). Case dismissal affirmed.

Failure to make proper proof of claim argument waives right to appeal.

Burnett v. Resurgent Capital Services 2006 U.S. App. LEXIS 671 (9th Cir. Jan. 12, 2006)

In response to Debtor object to proof of claim, Creditor failed to offer proof of amount. Court sustained debtor's objections. On appeal debtor stipulated to the amounts and proofs of claim, failed to direct arguments to creditor's motion to amend, and conceded resolution of other objections. Court found no exceptional circumstances to allow consideration of waived arguments and therefore reversed.

Creditor fails to call into question the correctness of lower court rationale.

Miles v. Beneficial Massachusetts, Inc. 2006 U.S. App. LEXIS 2901 (1st Cir. Feb. 7, 2006)

District court's reimposition of automatic stay was proper where creditor failed to argue the impropriety of the court's decision to reimpose the stay based on what it estimated to be a change in underlying circumstances.

In pari delicto bars trustee's RICO claims.

Miles v. Beneficial Massachusetts, Inc. 2006 U.S. App. LEXIS 2901 (1st Cir. Feb. 7, 2006)

Court dismissed trustee's complaint alleging fraud by corporate officers on shareholders. The 2 primary legal positions relied on by the Court were: (1) no sttate (Georgia) provisions for "aiding and abetting" as a form of breach of fiduciary duty; and (2) doctrine of pari delicto bars RICO claims.

Patent infringement claim reversed.

Hazelquist v. Guchi Moochie Tackle Co., 2006 U.S. App. LEXIS 3101 (U.S. App. Feb. 9, 2006)

Creditor alleged patent infringement by debtor. Court reversed dismissal of claims finding the alleged acts to have occurred following defendant's discharge in bankruptcy.

Preferential payments affirmed with modification.

G.H. Leidenheimer Baking Co., Ltd. v. Sharp 2006 U.S. App. LEXIS 2826 (5th Cir. Feb. 7, 2006).

Payments to specific supplier/creditors failed to qualify under "ordinary course of business" defense and therefore remain recoverable preferences. Creditor claims were modified and the "advance payment" defense was successfully applied instead.

Creditor not allowed to buy insurance claim.

In re Shkolnikov 2006 Bankr. LEXIS 113 (1st Cir. BAP Feb. 6, 2006).

Creditor tried to purchase debtor's insurance rights from Chapter 7 estate. Court refused to authorize sale and found no appellate standing on the part of that creditor to challenge the court's order this despite the fact that a prior court had in fact granted the creditor relief from stay and assigned the insurance rights to it.

Land sale installment contract = executory contract.

O'Brien v. Ravenswood Apartments, Ltd., 2006 Bankr. LEXIS 195 (6th Cir. B.A.P. Feb. 17, 2006)

Court denied motion to compel bankruptcy debtor to make land installment contract payments finding that to assume or reject the contract within a specified time period is improper. The court likened the land installment contract to an "executory contract" within the meaning of §365 as the seller is obligated to deliver title once all payments are made and not before.

Trustee has absolute discretion to disburse trust funds.

U.S. Bank v. United Airlines (7th Cir. Feb. 13, 2006)

State law requires that a trust agreement define the duties of a trustee. Title to trust funds passes to the beneficiary as per the terms of the trust with the trustee having complete discretion to disperse the funds.

In re Bright 1st Cir. BAP (2006)

Retroactive relief from the automatic stay is an extraordinary measure and the circumstances that justify it are likely to be "far and few between." When a creditor seeks retroactive annulment of the automatic stay, it is the creditor's burden to demonstrate that its void actions should be validated "after the fact." The creditor must show extreme circumstances, with facts both unusual and unusually compelling.The bankruptcy court did not err in retroactively annulling the stay where the debtor failed to disclose her interest in the subject property in her bankruptcy schedules, failed to inform the Court and her trustee of her claim to sale proceeds, and delayed in invoking the protection of the automatic stay.

In re Concannon 9th Cir. BAP (2006)

Bankruptcy court did not err in finding that 506(d) cannot be used in Chapter 7 to "strip down" a wholly unsecured secured claim.

In re Tippett 9th Cir. BAP (2006)

Bankruptcy court erred in finding that automatic stay rendered void debtors' unauthorized postpetition transfer of property.

Andreini & Co. v. Pony Express Delivery Servs., Inc. (02/27/06 - No.05-13824)

Summary judgment for defendant/debtor allowing it to recover a wire transfer as an avoidable preference is reversed since plaintiff, an insurance broker, was not "the initial transferee" of the wire as defined in sec. 550.

IRS Address to use in Petitions

When scheduling an IRS debt use the address of the local office as well as the following central office:

Internal Revenue Service

Insolvency Section

P.O. Box 21126

Philadelphia, PA 19114

From the "Yikes!" Department ... check these out

COUPLE ACCUSED OF BANKRUPTCY FRAUD

By Elizabeth Hume -- Bee Staff Writer

A Sacramento, California couple was indicted on 9 counts of bankruptcy fraud. Martha Kathleen Montoya and Eladio Calvillo Montoya, 50, allegedly filed 13 bankruptcies between July 1999 and January 2006 to avoid eviction.

CREDIT CARD SHARKS

By Jim Sollisch

Credit card issuers are now required by law to increase the minimum monthly payments they deman, the goal being to prevent interest from overwhelming borrowers. This story lists 7 things that those credit card issuers are now doing that would make a loan shark blush (come back Jimmy Two-Thumbs, we miss you!).

MORTGAGE RATES SQUEEZING HOMEOWNERS

By James Haggerty, Wall Street Journal

Subprime lending originations went from $150 billion in 2000 to $650 billion in 2005 as households took advantage of "affordability" mortgage loans -- heavily promoted by lenders -- that held down payments for an initial period then self-adjusted to cause payments to escalate 10% and 50%.

Transcripts in 24 hours for a fee

Coast-to-Coast Information Services provides tax transcripts that can be used to satisfy § 521(e)(2)(B). Keep in mind that the IRS also provides transcripts free of charge, but then charges for its 24 hour express service.

Tax Transcripts through the IRS

Returns: Mail Form 4506along with a check or money order for $39.00 per tax year. Allow 60 days Transcript: Free of charge. Call (800)–829–1040 or mail Form 4506-T. Transcripts will be mailed directly to you in 2 weeks and can be directed to a 3d party if specified on the form. 24 hour express service also available. See IRS Website.

In re Janice Diane Rybka (04 B 10104)

Caption: In re Janice Diane Rybka Bankruptcy No.: 04 B 10104 Adversary Caption: N/A Adversary No.: N/A Date of Issuance: March 20, 2006 Judge: John H. Squires

7th BAPCPA Meeting

Our seventh BAPCPA meeting is scheduled for Monday, April 17, 2006 at 2:30 at our office in Lisle. We'll talk about new requirements BAPCPA imposes on the Trustee's office, on you, and on the debtor at filing, at the 341 meeting, at confirmation and at discharge. The agenda includes: 1) Tax return transcripts and 60 days payment advices. 2) Properly completing Form B22C. 3) How to make the money flow the way you want it to using set payments in E 3 and E 5. 4) Adequate protection. 5) Extending or imposing the Automatic Stay. 6) Domestic Support Obligations 7) Emerging Case Law. Bring your paralegal(s) and administrative staff with you. Bring real life issues and questions. We'll furnish coffee and cookies. Please rsvp to Kate Hayes via e-mail at hayes_k@lisle13.com If you have attended any of the first six you are welcome to attend this one too.

In re Isaac

Round 'em up, Move 'em out

4th Circuit

Americredit Fin. Servs., Inc. v. Nichols (03/16/06 - No. 04-2107)

Denial of a creditor's motion to lift an automatic stay and grant of debtors' motion to modify their Chapter 13 bankruptcy plan pursuant to 11 U.S.C. section 1329 is affirmed where, under the circumstances of the case, there was no abuse of discretion in the decisions.

Credit Counseling/ Financial Management Course Requirements Distinct

Wednesday, March 15, 2006 Posted By Kevin Chern

Two recent cases from the Western District of Pennsylvania clarify the distinction between the pre-filing credit counseling requirement and the pre-discharge "financial management course." In In re Granada and In re Skarbek, the court ruled on identical issues: in both cases, the debtor had completed credit counseling prior to filing and later submitted "Debtor's Certification of Completion of Instructional Course Concerning Personal Financial Management," referencing the pre-filing counseling.

In both cases, the court ruled that the financial management course requirement had not been met and directed the debtor to comlete a course on financial management and file an amended certification. In so ruling, the court specifically stated, "The credit counseling requirement must be completed prior to the bankruptcy filing in order for an individual to be eligible to file a bankruptcy petition. The financial management course must be completed 'after filing the petition.'"

In re Marindee Kay Hardacre (Commentary from Glenn Stearns)

From Glenn Stearns, Chapter 13 Trustee Highlights of In re Marindee Kay Hardacre, 05-95518-DML-13, Bankruptcy Court, ND Texas, Fort Worth Division (PDF available from Glenn Stearns' office):

• No “Double Dipping” on mortgage and car loan expenses. We expected that.
• “Projected disposable income” is anticipated income during the term of the plan. We expected that.
• Debtor can’t deduct ownership costs on a car not subject to a secured claim.

The judge must have read the IRS’s Collection Financial Standards, part of which is shown below: Transportation The transportation standards consist of nationwide figures for monthly loan or lease payments referred to as ownership costs, and additional amounts for monthly operating costs broken down by Census Region and Metropolitan Statistical Area (MSA). Public transportation is included under operating costs. A conversion chart has been provided with the standards which shows which IRS districts fall under each Census Region, as well as the counties included in each MSA. The ownership cost portion of the transportation standard, although it applies nationwide, is still considered part of the Local Standards. The ownership costs provide maximum allowances for the lease or purchase of up to two automobiles if allowed as a necessary expense. The operating costs are derived from BLS data. If a taxpayer has a car payment, the allowable ownership cost added to the allowable operating cost equals the allowable transportation expense. If a taxpayer has no car payment, or no car, only the operating costs portion of the transportation standard is used to come up with the allowable transportation expense. Glenn Stearns Chapter 13 Trustee 4343 Commerce Court, Suite 120 Lisle, IL 60532 630-577-1313 ext 222 http://www.lisle13.com

Anna Nicole Smith Case Roundup

Florida Judge waives Credit Counseling requiement!

Loss of Immunity for Debt Collection Lawyers Provides Protection for Consumers

By Kevin Chern on Bankruptcy and the Economy

The 6th Circuit recently held that debt-collection attorneys who file affidavits to obtain garnishments can be sued under the Fair Debt Collection Practices Act. The court ruled that the immunity that typically applies to witnesses in judicial proceedings did not extend to attorneys filing garnishment affidavits. Consumer attorneys report that such affidavits are regularly filed without any supporting documentation. Whether that's due to fraud or simple carelessness, those attorneys have a lot more at risk following the 6th Circuit decision in Todd v. Weltman, Weinberg & Reis Co., No. 04-4109 (6th Cir.). This is good news for debtors, who have had little recourse when attorneys filed false affidavits and obtained garnishment orders. Not surprisingly, however, collection firms are taking quite a different position, and there appear to be some viable grounds for challenging the ruling, and a motion for rehearing has already been filed.

Illinois Bankruptcy Court Denies Trustee's Attempt to Exercise Control Over Nondebtor Corporation's Assets

This is a Central District of Illinois case

Medical Bills Account for only 17% of Bankruptcies

March 06, 2006 David Goch, Washington Legislative Counsel Commercial Law League of America A study entitled: Medical Bankruptcy: Myth Versus Fact, released last week on the website maintained by Health Affairs, a health policy journal, refutes previous findings that medical debt contributes to a majority of personal bankruptcies. The study said medical debt is a contributing factor in 17 percent of personal bankruptcies. The study was in response to the February 2005 study, 'Illness and Injury as Contributors to Bankruptcy,' by David Himmelstein of Harvard Medical School, along with Elizabeth Warren, Deborah Thorne and Steffie Woolhandler, that also appeared on the Health Affairs Website, which concluded that medical debt contributes to 54.5 percent of personal bankruptcies.

ABI's BAPCPA Blog: Homestead Cap Gets Another Adherent

Looks like the homestead cap is going to stay at $125,000 accross the board.

Don't look now but we're getting noticed

Don't look now fellow BKer's, but we're getting noticed. Check out our listing on the Blogroll of the hometown hero Bankruptcy Litigation Blog. The author even contacted me by e-mail to give us props. Not to bad for a one-man show out of the western suburbs, eh lads? Just shows what you can do when you choose to Blog instead of actually working! Now if only my Clients felt the same way ...

Pamphlet -- Attorney Liability under the BAPCA

Required reading.

In re Horn, __ B.R. __, 2006 WL 416314 (Bankr. M.D. Ala. 2/23/06)

Loan against equity in vehicle is not a PMSI claim -- hence not subject to the 910 day cramdown restriction

Held: not all loans secured by vehicles will fall within the ambit of 1325(a). The lender made a loan to the debtor which was used to purchase the car in 1997, and then between 2001 and 2003 refinanced the loan four more times, each time advancing additional funds to the debtor. The court held that under state law, the loan did not qualify as a "purchase-money obligation" because the debtor did not incur the entire debt as all or part of the purchase price of the vehicle. As a result of the multiple refinancings and additional advances, the security interest in the vehicle lost its purchase-money character. Thus, 506 still applied in determining the secured claim of the lender, which could be bifurcated and stripped down.

In re Robinson, __ B.R. __, 2006 WL 349801 (Bankr. W.D. Mo. 2/10/06)

Held: debtor could not strip down vehicle loan on car purchased for personal use within 910 days of filing and creditor is entitled to secured claim for total amount of its claim regardless of value of the vehicle. The debtor could, however, alter the term or interest rate of the loan. The court noted that the Supreme Court recently confirmed in Till v. SCS Credit Corp., 541 U.S. 465 (2004) that debtors can modify the interest rates that secured creditors are to receive in a Chapter 13 case under 1322(b)(2). While the creditor contended that Till was no longer good law in light of the amendment, in this case the Court disagreed, observing that if Congress had intended to modify Till's application to auto loans it could have done so by modifying 1322(b)(2) or referring to 'discount rate' or 'interest.' Congress had previously done so with respect to home mortgages, and the Till decision had extended an express invitation to Congress to enact remedial legislation if the Supreme Court had gotten it wrong. As a result, while the BAPCPA requires the debtor to pay the full amount of the vehicle loan creditor's claim over the course of the Chapter 13 plan, they do not overrule Till or prevent the debtor from modifying the interest rate to be paid on the claim."

Lover of life, paramour of women 1/10th his age -- J. Howard Marshall did it all

Ed. Note: Yes, I admit it. I'm a geek. How do I know? Because I found the following article published on the website of the American Bankruptcy Institute to be absolutely fascinating. I know, I know. I should get out more. Enjoy.

By Jack Ayer, ABI Resident Scholar (Visiting Prof. of Law, NYU Law School)

Long before he was an oil billionaire, husband of Anna Nicole Smith and the deceased figure at the center of this week’s probate dustup at the Supreme Court, a young J. Howard Marshall achieved notice in the Columbia Law Review on the topic of bankruptcy administration. ABI Member Bob Barnes of San Diego discovered Marshall’s name as an author of a 1932 article appearing in the Review. Howard partnered with a historical figure of the Supreme Court and in bankruptcy lore, William O. Douglas, to write “A Factual Study of Bankruptcy Administration and Some Suggestions.” (32 Colum. L. Rev. 25 (1932)).

Both Douglas and Marshall were serving on the Yale Law School faculty at the time. Douglas had joined the faculty at Yale in 1928. Marshall, according to an online biography, had graduated magna cum laude from Yale in 1931. The bio says that “Marshall was invited to join the Yale faculty and served as assistant dean,” and various sources, including the New York Times, report that Marshall was a professor of trusts and estates. Reading the dates in context, it seems likely that Marshall was Douglas’ research assistant during Marshall’s last year as a student.

Before he joined the Supreme Court, Douglas had made his name as a scholar of bankruptcy and corporate finance. He was one of the architects of modern securities law and an early chairman of the Securities and Exchange Commission. During his time at Yale, he authored or co-authored a number of articles about bankruptcy, particularly about bankruptcy in practice. He was a pioneer in the extension of law scholarship into empirical research.

In terms of research, the Douglas/Marshall article isn’t an original effort; rather, the authors draw on two new empirical studies of bankruptcy law at the time: the “Donovan Report,” conducted under the direction of William J. Donovan, and the “Thacher Study,” directed by Thomas D. Thacher with the assistance of Lloyd K. Garrison. (Apparently it was enough to get into the Yale Law Journal in those days simply to read and digest the work of others). Douglas and Marshall offered “avenues of attack to a few of the major problems confronting bankruptcy administration today (circa 1932) and suggest methods for making that administration more effective.”

In their conclusion, they offer seven suggestions. Some call for more aggressive examination of debtors (“bankrupts,” as they were then still known). Some urge expansive use of provisions on discharge. Perhaps the most interesting is the sixth recommendation: “Providing for amortization of debts by salaried bankrupts at their option, sufficient flexibility being provided to allow for partial amortization and readjustments of funding programs and no penalty being imposed for mere failure or refusal to amortize in full or in part” – in other words, chapter 13. Chapter 13 (“Chapter XIII,” as it was then known) became part of bankruptcy law in 1938.

Douglas left Yale in 1934 to join the SEC and was then appointed to the Supreme Court in 1939 by President Franklin D. Roosevelt. Apparently, Marshall preceded him to Washington, D.C., as his biography says he left Yale in 1933 “to work for the Secretary of Interior, Harold Ickes.” As Secretary of Interior, Ickes had an important role in resource and energy policy—a natural platform for Marshall, who would go on to make his fortune in the oil business. There is no evidence that Marshall ever brushed with bankruptcy law again—except, of course, from beyond the grave.

Fetla’s Trading, Inc., et al v. Granet et al (05 A 00926)

Bankruptcy Case: In re Fetla’s Trading Post, Inc., 04 B 12231 Adversary Case: Fetla’s Trading, Inc., et al v. Granet et al, 05 A 00926 Issued: March 2, 2006 Judge: John H. Squires Published: No Movant allowed to withdraw answers to requests for admissions. Partial summary judgment also granted.

Judge Cites "Billy Madison" in Dismissing Motion

I couldn't resist passing along this post from the Bankruptcy Litigation Blog to our members. Its a combination of seriously good writing on the part of the quoted Judge and sharp reporting from the Chicago-based Bankruptcy Litigation Blog. Kudos on a great post.

March comes in like a Lion and goes out like a Case Roundup!

6th Circuit Adell v. John Richards Homes Bldg. Co., L.L.C. (03/01/06 - No. 04-2154) Award of costs, Attorneys' fees, compensatory damages, and punitive damages, confirmed in residential construction context where Bankruptcy Court properly determined that the involuntary petition filed by plaintiff against defendant-contractor was put forth in bad faith.

Educ. Credit Mgmt. Corp. v. Barrett (03/02/06 - No. 05-8011) Bankruptcy Appellate Panel affirms order discharging debtor's student loans due to "undue hardship" pursuant to 523(a)(8) where debtor satisfied all prongs of the Brunner test. 8th Circuit Thorstenson v. Norton (02/28/06 - No. 04-4029) Summary judgment for defendant in dispute involving tribal land held in trust by the U.S. government is affirmed since plaintiff's action to enforce sales contract was precluded by a tribal court judgment. 11th Circuit Andreini & Co. v. Pony Express Delivery Servs., Inc. (02/27/06 - No. 05-13824)

Summary judgment for defendant, debtor. Prior finding that pre-filing wire transfer was a preference is reversed since plaintiff, an insurance broker, was not the "initial transferee" as defined in Sec. 550.

Institute for Financial Literacy

6th BAPCPA Meeting at Glenn Stearns' Office

6th BAPCPA Meeting

Monday, March 13, 2006 at 2:30

4343 Commerce Court, Suite 120

Lisle, IL 60532

www.lisle13.com

We'll talk about new requirements BAPCPA imposes on the Trustee's office, on you, and on the debtor at filing, at the 341 meeting, at confirmation and at discharge. We’ll review CMI, automatic stay, structuring a plan, adequate protection and payment of attorney fees. We'll discuss credit counseling, debtor education and anything else you like related to BAPCPA. We’ll review the emerging BAPCPA case law and local decisions of note. Bring real life issues and questions. We'll furnish coffee and cookies. RSVP to Kate Hayes at hayes_k@lisle13.com Those wishing to update their contact information may do so by sending it to stearns_g@lisle13.com

So I'm minding my own business and next thing you know, WHAM: CASE ROUNDUP!

Supreme Court Domino's Pizza, Inc. v. MacDonald (02/22/06 - No. 04–593)

A plaintiff cannot state a claim under 42 U.S.C. 1981 unless he has or would have rights under the existing or proposed contract that he wishes "to make and enforce." Section 1981 plaintiffs must identify injuries flowing from a racially motivated breach of their own contractual relationship, not of someone else's. 3rd Circuit In Re: Suprema Specialties, Inc. Sec. Litig. (02/23/06 - No. 04-3716, 04-3755)

Dismissal of securities laws, fraud, and misrepresentation claims against a now-defunct cheese making company's former directors and officers, its auditor, and several investment firms is reversed in part as to dismissal of claims under sections 11, 12(a)(2), and 15 of the Securities Act of 1933 and section 10(b) of the Securities and Exchange Act of 1934 as to specific defendants. 4th Circuit French v. Liebmann (02/14/06 - No. 05-1054)

A determination that a United States bankruptcy court can avoid a constructively fraudulent transfer of foreign real property between United States residents is affirmed over arguments involving the presumption against extraterritoriality and the doctrine of international comity. 5th Circuit Bonneville Power Admin. v. Mirant Corp. (02/13/06 - No. 04-11264)

An order declaring a party to have violated an automatic stay in a bankruptcy proceeding is affirmed since the bankruptcy stay preceded any termination permitted by either the Anti-Assignment Act or an executory agreement between the parties.

Harrington v. Grant (02/13/06 - No. 05-30052)

An order setting aside the tax sale of a former co-owner's interest in certain property pursuant to a finding that the sale was held in violation of an automatic stay is vacated where the lower courts erred in their analyses of whether a bankruptcy trustee’s assignee had the right to avoid the tax sale. Financial Acquisition Partners LP v. Blackwell (02/14/06 - No. 04-11300)

Dismissal of a complaint in a putative class action for securities fraud pursuant to the Private Securities Litigation Reform Act (PSLRA) is affirmed over challenges regarding: 1) a finding on collateral estoppel; 2) the striking of certain opinions from an expert's affidavit; 3) the PSLRA’s pleading requirements; and 4) denial of leave to amend the complaint. 6th Circuit In re: Marketing & Creative Solutions, Inc. (02/15/06 - No. 05-8041)

Order granting chapter 7 bankruptcy relief to creditors on their involuntary petition is affirmed where the bankruptcy court did not err as a matter of law in determining that the claims of petitioning creditors were not subject to bona fide dispute since the debtor raised no legitimate factual or legal dispute concerning its liability. 7th Circuit U.S. Bank v. United Airlines (02/13/06 - No. 05-1752, -1854)

Where state law holds that a trustee’s duties and obligations are strictly defined by and limited to the terms of the underlying trust agreement, title to funds held in trust passes to a beneficiary under the terms of the agreement, and trustees lack unfettered discretion to disburse such funds held in trust. 8th Circuit In re: Harris (02/15/06 - No. 05-6050)

An order terminating an automatic stay in a bankruptcy proceeding is affirmed where the debtor had adequate notice of the hearing on the motion to terminate the stay, and the court did not err in conducting a hearing on the motion in his absence when he failed to appear.

9th Circuit US v. Hagege (02/22/06 - No. 04-50425, 04-50427)

Defendant's conviction for bankruptcy fraud and false representation of a social security number is affirmed over his claims of error regarding denial of an evidentiary hearing, denial of a motion to dismiss, admission of evidence, and denial of a motion for a mistrial; further, his sentence is vacated pursuant to the government's Booker claim. Sea Hawk Seafoods, Inc. v. State of Alaska (2/22/06 - No. 04-35319)

An order finding that a settlement agreement in a bankruptcy proceeding released plaintiff's claim against defendant-state is reversed where, under the circumstances, the bankruptcy court lacked jurisdiction to interpret the agreement in an adversary proceeding between two creditors. First Ave. W. Bldg., LLC v. James (02/23/06 - No. 04-35324)

District court order permitting a bankrupt tenant's trustee to pursue recovery from the landlord of damages up to the full amount of the tenant's security deposit, including a letter of credit, is affirmed where: 1) the landlord forfeited a timeliness issue; 2) rejection of a lease did not bar the trustee's action; and 3) the bankruptcy court clearly erred in finding it had no jurisdiction over the claim.

Got Google?

How do you find information when you need it? Paper? Westlaw? Lexis? Google? Inquiring minds want to know, and this post from the Dennis Kennedy Blog makes a few good points of its own.

Ed. Note: Finding information when we need it. How do we do it? Internal information. External information. Any information. Comment to this Blog post or respond to the E-mail Group and share your insights with the group.

Ostlund v. Isfan (04 A 7113)

Bankruptcy No. 04 B 73288 Date of Issuance: February 22, 2006 Judge: Manuel Barbosa Debt excepted from discharge pursuant to 523(a)(2)(A).

Jabamoni v. Zordan (05 A 01711)

Bankruptcy: In re Don J. Zordan, 05 B 14742 Date of Issuance: January 26, 2006 Judge: John H. Squires Published: No Opinion denying summary judgment with respect to adversary complaint seeking to except certain debts from discharge. Court also narrows issues for trial and issues final pretrial order.

In re Slocum Lake Drainage District of Lake County (05 B 63193)

Date of Issuance: January 19, 2006 Judge: John J. Squires Chapter: 9 (municipalities) Debtor not eligible to take advantage of Chapter 9 bankruptcy protection because it was not specifically authorized under a statute or by a governmental officer or organization.

Fisher v. Enterprise Truck Line, 05 A 1370/1373/1380

January 17, 2006 Judge Schmetterer Bankruptcy Case: In re CMX, Inc., 03 B 28236 Debtor was insolvent at time of transfer to Defendants and transferred more to them than they would have been entitled to receive in a Chapter 7 (i.e. transfer was a voidable preference).