Westlaw Topical Highlights: Bankruptcy, January 13, 2014

January 13, 2014

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.

Bankruptcy Estate: Debtor had exemptible interest in retirement plan by virtue of unqualified domestic relations order (DRO).  In re Remia 2013 WL 6798949 (Bkrtcy.D.Mass.)  A prepetition separation agreement and divorce judgment, which constituted an unqualified domestic relations order (DRO), granted the Chapter 7 debtor a property interest in her ex-spouse’s retirement funds while extinguishing his interest in the same, such that the debtor could claim her share of the funds as exempt under 11 U.S.C.A. § 522(d)(12), a Massachusetts bankruptcy court held. “While there does not appear to be any reported decision addressing whether a Debtor has an exemptible interest in a retirement plan by virtue of a DRO, the nature of the interest granted by the unqualified DRO has been examined in the context of dischargeability proceedings and [was] instructive to [the court’s] analysis,” the court noted. 2013 WL 6798949.  (The full-text of the rest of the Topical Highlights is available within Westlaw Next, subscription required). 

Avoidance: Law firm acted as mere conduit in receiving settlement payments. In re Cargo Transportation Services, Inc. 2013 WL 6183816 (Bkrtcy.M.D.Fla.)

Limitations: Limitations period for avoidance claim was held in abeyance where bankruptcy court intended to and did effectuate severance.  In re Palermo 2014 WL 43884 (C.A.2 (N.Y.))

Plans: Certificate of Purchase could be paid in installments over course of Chapter 13 plan.  In re LaMont 2014 WL 47018 (C.A.7 (Ill.))

Case Administration: Unstayed, non-default state-court judgment on appeal may be subject to “bona fide dispute.”  In re Fustolo 2013 WL 6577295 (Bkrtcy.D.Mass.)

Leases and Contracts: Confirmed plan rejected alleged executory contract.  In re Davis 2013 WL 6501180 (Bkrtcy.M.D.Pa.)

Bankruptcy Estate: Refundable portion of child tax credit was not exempt “public assistance.”  In re Hardy 2013 WL 6726866 (8th Cir.BAP (Mo.))

Debtor Protections: Regulatory proceeding brought by environmental organization was not subject to the police power exception to the automatic stay.  In re Edison Mission Energy 2013 WL 6092445 (Bkrtcy.N.D.Ill.)

Estoppel: Judicial estoppel barred former debtor’s FLSA claims.  Amash v. Home Depot U.S.A., Inc. 2013 WL 6596674 (N.D.N.Y.)

Avoidance: Trustee did not adequately allege that transferee’s principal was subsequent transferee of alleged fraudulent transfers.  In re Geltzer 2013 WL 6510746 (Bkrtcy.S.D.N.Y.)

Discharge: Judgment debt for unprovoked assault was nondischargeable on “willful and malicious injury” theory.  In re Alexander 2013 WL 6923266 (Bkrtcy.W.D.N.Y.)

Bankruptcy Estate: Neither rule nor in pari delicto doctrine precluded fraud claims from accruing to bankruptcy estate.  In re Salander 2013 WL 6847104 (S.D.N.Y.)

Bankruptcy Estate: Bankruptcy trustee’s turnover power was not restricted to property of estate at time that turnover motion was filed.  Shapiro v. Henson 2014 WL 68998 (C.A.9 (Nev.))