November 24, 2014
Westlaw 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.
Leases and Contracts: Equipment lease was disguised security agreement. In re ES2 Sports & Leisure, LLC, 2014 WL 6362434 (Bkrtcy.M.D.N.C.) An alleged equipment lease, pursuant to which a Chapter 7 debtor-lessee had a non-cancelable obligation to make monthly payments of $6,554 for 40 months, for a total payment of $262,160, on exercise equipment valued at $198,931 at the time that it was delivered to a fitness center operated by debtor, and pursuant to which the debtor had the ability to acquire the equipment at the end of the lease term for a nominal payment of $1.00, was not a true lease under North Carolina law, but a disguised security agreement. Thus, the debtor was at all times the owner of this equipment, and any postpetition use of the equipment by the trustee, as successor in interest to the debtor’s ownership interest, could not support an administrative expense claim on behalf of the purported equipment lessor. 2014 WL 6362434. (The full-text of the rest of the Topical Highlights is available within Westlaw Next, subscription required).
Avoidance: Obligations assumed on divorce were not constructively fraudulent. In re Allen 2014 WL 5931854 (Bkrtcy.W.D.Mich.)
Parties: rule did not apply to deprive estate representative of standing. In re BC Funding, LLC 2014 WL 5507677 (Bkrtcy.E.D.N.Y.)
Case Administration: Rental properties cannot be retained at creditors’ expense. In re Fox 2014 WL 6066120 (Bkrtcy.D.Md.)
Case Administration: “Primarily consumer debts” determination under § 707(b) is made as of the petition date. In re Gutierrez 2014 WL 5689755 (Bkrtcy.D.Vt.)
Claims: Lender’s conduct was not sufficiently egregious for equitable subordination of claim. In re Citrus Tower Blvd. Imaging Center, LLC 2014 WL 6450033 (Bkrtcy.N.D.Ga.)
Avoidance: First-time supplier was not per se barred from asserting “ordinary course” defense. In re Quality Sales, LLC 2014 WL 5846756 (Bkrtcy.D.Conn.)
Debtor Protections: Foreclosure purchaser cannot be granted in rem stay relief. In re Ellis 2014 WL 6473251 (9th Cir.BAP (Cal.))
Discharge: False oaths warranted denial of discharge. In re Katsman 2014 WL 6466004 (C.A.7 (Ill.))
Case Administration: Trustee’s delay in moving to dismiss did not trigger laches. In re Harwood 2014 WL 5835588 (Bkrtcy.N.D.Cal.)
Professionals: Court cannot order disgorgement of interim fees. In re Headlee Management Corp. 2014 WL 6156903 (Bkrtcy.S.D.N.Y.)