By Scott Riddle Posted in Eleventh Circuit CasesIn a case of first impression in the Eleventh Circuit, the Circuit Panel addressed the dischargeability of debts incurred by a produce buyer who is acting as a trustee under the Perishable Agricultural Commodities Act (“PACA”). In re Forrest, 2022 WL 3908803 (11th Cir. August 31, 2022)(click here for .pdf). The court concluded that debts… Continue Reading
By Scott Riddle Posted in News and Comments,Northern District Cases,Small Business BankruptcyThe Governors Gun Club of Kennesaw filed a Chapter 11 case in the Northern District of Georgia on August 17, 2022. Case No. 22-20787-jrs. The reason for the filing, as stated in pleadings filed with the Court – Like so many other small businesses, the Debtor suffered a series of setbacks at the hands of… Continue Reading
By Scott Riddle Posted in Eleventh Circuit Cases,Northern District CasesIn Auriga Polymers, Inc. v. PMCM2, LLC, as Liquidating Trustee, No. 20-14647, 2022 WL 2800195 (11th Cir. July 17, 2022) (click here for .pdf) the creditor, Auriga, received transfers of more than $2.2 million in the 90 days before the Debtor, Beaulieu Group, LLC, filed its Bankruptcy case on July 16, 2017. During the 90… Continue Reading
By Scott Riddle Posted in Consumer Bankruptcy Guide,Northern District CasesIn the case of In re Ruff, 2022 B.R. 1638964, Ch. 7 Case No. 20-68855-pwb (Bankr. N.D.Ga. March 31, 2022) (click here for .pdf) the issue was whether the educational loans owed by the Debtor were “consumer” debts as defined by 11 U.S.C. §101(8) of the Bankruptcy Code, and incorporated into 11 U.S.C. §707(b). If… Continue Reading
By Scott Riddle Posted in Eleventh Circuit Cases,Northern District CasesOnce again, a Bankruptcy case leads to a key opinion in Georgia real estate law and, as often the case, the Chapter 7 Trustee prevails. In In re Lindstrom, 2022 WL 1041192 (11th Cir. April 7, 2022) (click here for .pdf) the issue was the validity of a security deed, the interpretation of the Georgia… Continue Reading
By Scott Riddle Posted in Northern District Cases[Updated – The Trustee has filed a Motion for Rehearing (click here for .pdf of motion). That Motion was denied on July 12, 2022 (click here for Order]. In this lengthy post, we discuss Judge Paul Bonapfel’s 73-page Order in which he skewered the fee application of a Chapter 7 Trustee and effectively changed the… Continue Reading
By Scott Riddle Posted in Eleventh Circuit CasesIn a relatively brief opinion, the Eleventh Circuit Court of Appeals ruled on the deadlines for appealing an order from the District Court (acting as an appellate court for a Bankruptcy Court Order) to the Court of Appeals. Appellants appealed a Bankruptcy Court Order to the District Court for the Northern District of Georgia. On… Continue Reading
By Scott Riddle Posted in Georgia State Cases,Middle District CasesIn Georgia, does a judgment lien attach to real property as of the date the judgment was entered or as of the date and time the writ of fieri facias on that judgment is properly recorded in the county records, as required under Georgia law? The Supreme Court of Georgia answered this question in Synovus… Continue Reading
By Scott Riddle Posted in Corporate & Fiduciary Litigation,Miscellaneous CasesIn Jay Alix, as assignee of AlixPartners, LLP v. McKinsey & Co., Inc., 2022 WL 163800 (2nd Cir., January 19, 2022) (click here for .pdf), two major competitors in the niche market of Bankruptcy advising to estates with a billion dollars or more of assets were in court against each other over lucrative consulting assignments.… Continue Reading
By Scott Riddle Posted in Eleventh Circuit Cases,Georgia State Cases,Northern District CasesIn In re Hoffman, 2022 WL 203415 (11th Cir. January 24, 2022) (click here for .pdf) the issue before the Court was whether Roth IRAs were exempt pursuant to 11 U.S.C. §541(c)(2) or O.C.G.A. § 44-13-100(a)(2)(E). This is a case of first impression in the Circuit, based upon recent amendments to the Georgia exemption statutes.… Continue Reading
By Scott Riddle Posted in Eleventh Circuit CasesIn SuVicMon Development, Inc. v. Morrison, __ F.3d __, 2021 WL 1136546 (11th Cir. March 25, 2021) (click here for .pdf), the plaintiffs are three corporations that sued the Debtor for fraud and securities violations in state court. Plaintiffs subsequently amended the complaint to include fraudulent transfer claims against Debtor and his two sons. Debtor… Continue Reading
By Scott Riddle Posted in Consumer Bankruptcy Guide,Miscellaneous CasesIn In re Tingling, __ F3d __, 2021 WL 922448 (2nd Cir. March 11, 2021) (click for .pdf), the Debtor filed an adversary proceeding seeking discharge of her student loans. The Bankruptcy Court determined that the debtor failed to meet the Brunner Test, and the District Court affirmed. The Debtor appealed to the Second Circuit,… Continue Reading
By Scott Riddle Posted in Eleventh Circuit CasesIn In re Breland, __ F.3d __ , 2021 WL 910657 (11th Cir., March 10, 2021) (click here for .pdf) the individual Debtor filed a voluntary Chapter 11 petition. After it was determined that he was transferring assets and defrauding his creditors a Chapter 11 Trustee was appointed. [Debtor] protested that the trustee’s appointment violated… Continue Reading
By Scott Riddle Posted in Northern District CasesIn what certainly will be one of most important and talked-about orders to come out of the Northern District of Georgia in some time, Judge Paul Bonapfel eviscerated a fee application filed by a Chapter 7 Trustee and counsel. The case is In re McConnell, Case No. 19-67128-pwb, 2021 WL 203331 (Bankr. N.D.Ga. October 28,… Continue Reading
By Scott Riddle Posted in News and Comments,Northern District Cases“It has been said that, in many bankruptcy cases, there are no good alternatives, only less bad ones. As financial realities in this case took hold, it became clear that, for most creditors, including the objectors, there were not even “less bad” alternatives. The Court is saddened that it can offer only an explanation for… Continue Reading
By Scott Riddle Posted in Small Business BankruptcyIf you own a small business you are most likely very concerned about making it through the next few months. Unfortunately, one of the inevitable consequences of the ongoing Covid-19 crisis is the increase in business closings – temporarily or permanently. We have already seen a long list of large, well-known businesses close permanently or… Continue Reading
By Posted in News and CommentsLawyers who handle Chapter 11 Bankruptcy cases for small to medium size businesses usually address these questions in the initial conversation with potential clients. "How much is a Chapter 11 case?" "Why is it so expensive?" "I just want to stop the foreclosure/lawsuit/collection, then we can dismiss." "Can’t I pay a little over time?" While… Continue Reading
By Posted in Northern District CasesThe owner of Gold Creek Golf Club (web page was down as this is posted) in Dawsonville filed a Chapter 11 petition in the Northern District. In re Gold Creek S.L. LLC, Chapter 11 Case No. 08-22232-reb (Filed August 13, 2008). According to this article and this article, Regions Bank was going to foreclose in September. … Continue Reading
By Scott Riddle Posted in News and CommentsThe Atlanta Business Chronicle has a front-page article, Bankrupt Home Developer Owes $131,000,000, about another real estate developer who is caught up in the real estate crash. Stephen H. Macauley, president of The Macauley Companies Inc., has filed for personal bankruptcy, reporting debts of $131 million. In recent years Macauley has completed 32 communities with… Continue Reading
By Posted in News and CommentsBy: Scott B. Riddle, Esq. Updated 4/25/08 (scroll to bottom) The disaster that is the Clayton County School Board has struck again. On the verge of being the third school district in the United States to lose accreditation in the last 20 years (see the report here), they struck again last night. In a non-public session, and… Continue Reading
By Posted in Eleventh Circuit Cases By: Scott B. Riddle, Esq. Trusted Net Media Holdings, LLC v. The Morrison Agency, Inc. (In re Trusted Net Media Holdings, LLC), No. 07-13429 (11th Cir. April 29, 2008) (click here for pdf of opinion). The basic facts are the following – On April 20, 2002, Morrison, as a creditor, filed an involuntary bankruptcy petition… Continue Reading
By Posted in News and CommentsFrom Law.com – The 75-page complaint, filed Monday in Manhattan Supreme Court by trustee Richard Gray, alleges McDermott Will put off a much-needed Chapter 11 filing to facilitate self-dealing by two other members of the hospital group’s restructuring team. As a result of the delay, the trustee claims, Saint Vincent’s incurred greater operating losses, paid… Continue Reading
By Posted in News and CommentsLike most lawyers, I am often asked what kinds of cases I generally handle. Obviously, one of my practice areas is bankruptcy law, but I also receive questions about what specific types of bankruptcy matters I handle. After a year and a half of publishing this Blog, I thought it time to describe my practice… Continue Reading