More Rounding Up Found Here

In re Delta Air Lines, 2006 Bankr. LEXIS 554 (Bankr. S.D.N.Y. March. 23, 2006) Court denies setoff against prepetition claim From Weil, Gotshalk & Manges Bankruptcy Bulletin June 2006 HELD: lessor's claims against Delta (debtor) under 365(g) and 502(g) could not be offset against its obligations to the estate because under state law those credits were not a prepetition debt owed to the debtor -- and even if the credits could be considered a prepetition debt they still could not be offset against lessor's damage claim. the court concluded that the damage claim did not “arise before the commencement of the case under state law“ and therefore the code did not provide that it should be effective in bankruptcy. UPSHOT: the code does not create a right of setoff under state law but simply preserves setoff rights that already exist. ___________________ Ajaka v. Brooksamerica Mortgage Corp. (06/29/06 - No. 05-12105) (11th Cir.) Summary judgment for defendants in suit claiming violations of Truth in Lending Act is reversed where there is a question of material fact. Bracewell v. Kelley (06/30/06 - No. 05-11951) (11th Cir.) Exclusion of a federal payment for crop loss from a bankruptcy estate when the loss occurred before the creation of the estate, but the law creating the right to the payment was enacted afterwards, is affirmed where: 1) there was no legal or equitable right to the payment at the moment of creation; and 2) the assistance did not constitute proceeds from the property of the estate.