Westlaw Topical Highlights: Bankruptcy, August 5, 2013

August 5, 2013

BankruptcyWestlaw Topical Highlights for Bankruptcy provides summaries of significant federal and state judicial decisions and legislative and administrative activities affecting Bankruptcy law. A Westlaw subscription is required to access the documents linked from this page.

Claims: Committee failed to establish “cause” for court to reconsider previously allowed claim of law firm.  In re Rama Group of Companies, Inc. 2013 WL 3872176 (Bkrtcy.W.D.N.Y.)  The official committee of unsecured creditors failed to establish “cause” for a New York bankruptcy court to reconsider the committee’s settlement of the prepetition claim of the law firm that had represented the Chapter 11 debtor with its restructuring and partial sale. The committee had settled its objection to the firm’s claim for its prepetition legal services and had stipulated to the allowance of a general unsecured claim in a specified amount. The committee failed to direct the court’s attention to any newly discovered facts that were not already part of the record at the time of the prior claim objection but, instead, merely restated grounds previously asserted. Although § 502(j) of the Bankruptcy Code provides that a claim that has been allowed or disallowed may be reconsidered for cause, “such cause would necessitate something more than a restatement of grounds previously asserted,” the court explained. 2013 WL 3872176 (The full-text of the rest of the Topical Highlights are available within Westlaw Next, subscription required)

Jurisdiction: Bankruptcy court did not render improper advisory opinion in ruling on motion to reopen.  In re Lazy Days’ RV Center Inc. 2013 WL 3886735 (C.A.3 (Del.))

Claims: Deficiency claim filed by bank following nonjudicial foreclosure sale had to be disallowed.  In re Brock 2013 WL 3353453 (Bkrtcy.D.Colo.)

Plans: Proposed Chapter 11 plan satisfied the requirements for “cramdown.”  In re Texas Star Refreshments, LLC 2013 WL 1197672 (Bkrtcy.N.D.Tex.)

Discharge: Sophisticated debtors could not assert advice-of-counsel defense in “false oath” proceeding.  In re Mitchell 2013 WL 3760111 (Bkrtcy.N.D.Fla.)

Case Administration: Chapter 11 debtor did not qualify as “single asset real estate debtor.”  In re Yishlam, Inc. 2013 WL 3894949 (Bkrtcy.S.D.Tex.)

Avoidance: Bankruptcy court’s application of valuation method to assess “reasonable equivalence” presented finding of fact.  Alberts v. HCA, Inc. 2013 WL 3466972 (D.D.C.)

Avoidance: Payments that debtor had made from its client trust account qualified as transfers of “property of the debtor.”  In re Dayton Title Agency, Inc. 2013 WL 3925820 (C.A.6 (Ohio))

Plans: Chapter 11 debtor could exercise state law redemption rights by payments under plan.  In re Bovino 2013 WL 3872174 (Bkrtcy.N.D.Ill.)

Debtor Protections: Bankruptcy court did not abuse its discretion in granting secured creditors relief from automatic stay.  In re McCullough 2013 WL 3466957 (W.D.N.C.)

Claims: Mortgage against debtor’s property did not become obsolete under Massachusetts law.  In re Loucheschi LLC 2013 WL 3788485 (Bkrtcy.D.Mass.)

Leases and Contracts: Frustration of purpose did not relieve buyer of debtor’s assets and its nominee of obligation to perform under sale agreement.  In re Cyphermint, Inc. 2013 WL 3866508 (Bkrtcy.D.Mass.)

Discharge: Debtor’s personal liability under prepetition guaranty was subject to being discharged.  In re Russo 2013 WL 3471193 (Bkrtcy.M.D.Fla.)

Discharge: Restitution that debtors were ordered to pay in connection with their embezzlement conviction did not fall within § 523(a)(7).  In re Rayes 2013 WL 3784159 (Bkrtcy.E.D.Mich.)

Plans: Chapter 13 debtor’s voluntary retirement contributions do not constitute disposable income.  In re Jensen 2013 WL 3877818 (Bkrtcy.D.Utah)