By Posted in Miscellaneous CasesBy: Scott B. Riddle, Esq. Bob Eisenbach at the Business Bankruptcy Blog discusses the case of Wood v. Stratos Product Development, LLC (In re Ahaza Systems, Inc.), 2007 U.S.App. LEXIS 7607 (9th Cir. April 3, 2007), wherein the Ninth Circuit held that even first-time transactions between the parties can come within the ordinary course defense… Continue Reading
By Posted in Miscellaneous CasesBy: Scott B. Riddle, Esq. There is a school of thought that says that Chapter 7 debtors can still "pass" the Means Test if the expense that would otherwise cause them to "fail" is a house payment more than the allowable housing deduction. It is unclear where that arose, or how often it worked, but… Continue Reading
By Posted in Miscellaneous CasesBy: Scott B. Riddle, Esq. This opinion could by very important in Chapter 11 (or 13) cases that are nearing their two-year anniversary and in danger of conversion. In Singer, Trustee v. Franklin Boxboard Co. (In re American Pad & Paper, Co.), No. 05-1379, 2007 Bankr. LEXIS 4792 (3rd Cir. March 2, 2006), the Chapter 11 Order… Continue Reading
By Posted in Corporate & Fiduciary Litigation,Miscellaneous CasesPosted By: Scott B. Riddle, Esq. In Kaye v. Dupree, et al. (In re Avado Brands, Inc.), Adv. No. 05-3823, 2006 Bankr. LEXIS 3631 (Bankr. N.D. Tex. December 28, 2006), the Trustee of the Debtor’s Litigation Trust filed a post-confirmation suit against the Debtor’s former officers and directors. The causes of action included preferential transfers,… Continue Reading
By Posted in Miscellaneous CasesSection 546 of the Bankruptcy Code was amended with the enactment of the BAPCPA. The new provisions provide sellers of goods with a 45-day window for reclamation, instead of incorporating the 10 day window in the Uniform Commercial Code, require that the goods be sold in the ordinary course of the seller’s business, requires the… Continue Reading
By Posted in Miscellaneous CasesSeveral blogs reported last year on the order entered in the Florida case of Avista Management v. Wausau Underwriters Insurance Co. (June 6, 2006), in which the Judge ordered the lawyers to play a game of "rock, paper, scissors" to resolve a discovery dispute. Judge Marvin Shoob threatened the same in an order entered in the… Continue Reading
By Posted in Miscellaneous CasesBy: Scott B. Riddle, Esq. Deutsche Bank A.G. London Branch v. Worldcom, Inc. (In re Worldcom, Inc.), 2006 U.S. Dist. LEXIS 92729 (S.D.N.Y. December 21, 2006). The plaintiff filed proofs of claim in Worldcom’s Bankruptcy case for pre-petition dividends that were announced, but never paid. The issue before the District Court, on appeal from the Bankruptcy… Continue Reading
By Posted in Miscellaneous CasesBy: Scott B. Riddle, Esq. The Split Circuits Blog reviews the case of For Play Limited v. Bow to Stern Maintenance, Inc., Slip Copy, 2006 WL 3662339 (S.D. Fla. Nov. 06, 2006). An excerpt from the opinion – There is a split of authority regarding whether clerical or secretarial work is compensable. Compare, e.g., Walker… Continue Reading
By Posted in Miscellaneous CasesThe Split Circuits Blog discusses the case of In re Moore, — B.R. —-, 2006 WL 3692640 (Bkrtcy.E.D.Tenn. Dec. 14, 2006), wherein the issue was the validity of credit counseling done the day of filing. Resolution of the motions to dismiss turns on the interpretation of 11 U.S.C. § 109(h)(1), which was enacted by the… Continue Reading
By Posted in Miscellaneous CasesSorry for the length of this post, but rather than attempt to summarize this case I am posting lengthy excerpts from the opinion. Scroll to the bottom of the post for links to the briefs filed in the case. Thanks to Katie Porter at Credit Slips for notice of the case. Milavetz, Gallop & Milavetz… Continue Reading
By Posted in Miscellaneous CasesBob Lawless at the Credit Slips Blog ("Debtors Want Their MTV") discusses the Fifth Circuit case of Darby v. Time-Warner Cable, Inc. (In re Darby), No. 05-20931 (5th Cir. Nov. 14, 2006), in which the debtor claimed that §366 required the Cable Company to provide service, with adequate assurance of payment. The Fifth Circuit held… Continue Reading
By Posted in Miscellaneous CasesIn In re Tubular Technologies, LLC, Chapter 11 Case No. 06-00228 (Bankr. D. S.C. June 21, 2006) (click here for the opinion), the debtor filed a Chapter 11 petition on January 20, 2006. On May 12, 2006, 112 days after the petition date, the debtor moved, pursuant to 11 U.S.C. §365(d)(4), for an extension of… Continue Reading
By Posted in Miscellaneous CasesFrancis G.X. Pillegi, in the Delaware Litigation Blog, discusses the case of Bryan v. Doar, (Del. Supr., Nov. 6, 2006), in which the Delaware Supreme Court held that the Bankruptcy Trustee of the Creditor Trust did not have standing to appeal a Chancery Court decision when he failed to seek substitution under Rule 25(c) or intervention at… Continue Reading
By Posted in Miscellaneous CasesIn Nisselson v. Lernout, 2006 U.S. App. LEXIS 27562 (1st Cir. November 8, 2006), (click here for opinion) the Trustee of a Litigation Trust filed suit against several parties for securities fraud, fraud, unfair trade practices, negligent misrepresentation and conspiracy. The claims arose from a failed merger. The basic, relevant facts are relatively straightforward. "Old… Continue Reading
By Posted in Miscellaneous CasesZelotes v. Martini, 2006 U.S. Dist. LEXIS 81385 (D. Conn. November 7, 2006). The plaintiff, a bankruptcy lawyer, filed a lawsuit to declare Section 526(a)(4) unconstitutional. This section provides — A debt relief agency shall not . . . advise an assisted person or prospective assisted person to incur more debt in contemplation of such… Continue Reading
By Posted in Miscellaneous CasesIn re Greater Southeast Community Hospital Corp., (Alberts v. Tuft), 2006 B.R. 2419 (Bankr. D.C. September 21, 2006). The Trustee for the Liquidating Trust filed suit against former officers and directors, and the debtors’ former law firms, alleging that the defendants furthered a Ponzi scheme. One of the claim asserted by the trustee was deepening… Continue Reading
By Posted in Miscellaneous CasesFrancis G.X. Pillegi at the Delaware Litigation Blog discusses the case of Stone v. Ritter, (Del. Supr., Nov. 6, 2006), in which the Delaware Supreme Court "clarified its position on whether "good faith" is a separate stand-alone duty, in the same way as loyalty and due care are." Francis also has a link to the opinion, … Continue Reading
By Posted in Miscellaneous CasesIn Trenwick America Litigation Trust v. Ernst & Young, LLP, et al, 906 A.2d 168, 2006 Del Ch. LEXIS 139 (Del. Ch. August 10, 2006), the Chancery Court firmly held that deepening insolvency is not a valid cause of action under Delaware law. It will be interesting to see how the Delaware Supreme Court rules… Continue Reading
By Posted in Miscellaneous CasesThe Electronic Discovery Blog discusses the case of In re Quintus Corp., 2006 WL 3072982 (Bankr. D. Del. Oct. 27, 2006), wherein the Delaware Bankruptcy Court entered summary judgment in favor of a Bankruptcy Trustee based upon the adverse party’s destruction of documents. See $1.888 Million Judgment Entered in Favor of Bankruptcy Trustee Based on… Continue Reading
By Posted in Miscellaneous CasesIn In re CITX Corp. (Seitz v. Detweiler Hershey & Assoc., PC), 448 F.3d 672, 2006 U.S. App, LEXIS 13141 (3rd Cir. May 26, 2006), the debtor was also alleged to have been an illegal Ponzi scheme. The Chapter 7 Trustee filed suit against the accounting firm for, inter alia, deepening insolvency. The District Court… Continue Reading
By Posted in Miscellaneous CasesIn In re Southwest Florida Heart Group, P.A. (Amato v. Southwest Florida Heart Group, P.A), 2006 Bankr. LEXIS 1556 (Bankr. M.D. Fla. July 7, 2006), Judge Paskay, with no discussion, held that "there is no cognizable, viable claim based on a theory of deepening insolvency."… Continue Reading
By Posted in Miscellaneous CasesI was involved in a case earlier this year where the Superior Court appointed a Receiver to take control of the assets and management of a corporation. Notwithstanding the appointment of a Receiver, the owners filed a Chapter 7 petition. The Bankruptcy Court ultimately abstained and dismissed the case based upon the equities of the… Continue Reading
By Posted in Miscellaneous CasesThere have been several recent stories about on-the-field or on-the-court incidents during sporting events. See Youth Coach Attacks Opposing Player; Temple Coach John Chaney Sends "Goon" To "Send A Message," Miami v. Florida International, etc. In Brokaw v. McSorley, Adv. No. 05-31213, 2006 Bankr. LEXIS 2728 (Bankr. S.D. Iowa October 18, 2006), the debtor was a… Continue Reading