Westlaw Topical Highlights: Bankruptcy, November 7, 2016

November 7, 2016

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: Surrender was proper remedy for debtor’s failure to perform stated intent to reaffirm mortgage debt. Bank of America, N.A. v. Rodriguez, 2016 WL 5942527 (S.D.Fla.) A Chapter 7 debtor’s failure to perform in accordance with her stated intent to reaffirm the mortgage debt, while not making any payments thereon and continuing to live on the mortgage property, provided “cause” to reopen the case in order to grant relief to mortgagee, where alternative state court forum had not resulted in resolution of the matter for over three years. After the case was reopened, the mortgagee was entitled to an order compelling the debtor to surrender the mortgage property. A district judge in Florida ruled that a debtor who has not performed her stated intent to reaffirm mortgage debt, redeemed the mortgage property, or paid her mortgage is left with only one option, to surrender the mortgage property. 2016 WL 5942527  (The full-text of the rest of the Topical Highlights is available within Thomson Reuters Westlaw, subscription required).    

Discharge: Debtors’ numerous false oaths were made with at least reckless indifference for the truth.  In re Schryer 2016 WL 5475984 (Bkrtcy.N.D.Ill.)

Avoidance: State university cannot raise its immunity to bar trustee from identifying golden unsecured creditor for strong-arm purposes.  In re Harnett 2016 WL 5800464 (Bkrtcy.D.Conn.)

Claims: Creditor’s attorney fee award would be treated as unsecured, prepetition claim, subject to treatment and discharge under Chapter 11 plan.  In re Baroni 2016 WL 5724755 (Bkrtcy.C.D.Cal.)

Jurisdiction: Member of board of trustees for Chapter 11 debtor was not entitled to immunity on grounds of safe harbor under New Jersey’s Nonprofit Corporation Act.  In re Newark Watershed Conservation and Development Corporation 2016 WL 3548831 (Bkrtcy.D.N.J.)

Arbitration: Debtor was equitably estopped from asserting that lack of his signature on agreement precluded enforcement of arbitration provision as to debtor.  In re Jackson 2016 WL 5787236 (Bkrtcy.D.Conn.)

Jurisdiction: Bankruptcy court had constitutional authority to enter final turnover order. Reed v. Nathan 2016 WL 5844579 (E.D.Mich.)

Discharge: Any negligence in loss of vehicle did not rise to level of conduct intended to hinder, delay or defraud.  In re Rivas 2016 WL 6155900 (Bkrtcy.D.N.J.)

Appeals: Creditors’ lack of diligence prevents extension of appeals deadline on “excusable neglect” theory.  Larson v. Bayer 2016 WL 5462410 (E.D.Pa.)

Bankruptcy Estate: Debtor claiming Alaska homestead exemption failed to prove actual occupancy on a regular basis.  In re Vaughn 2016 WL 5763058 (Bkrtcy.D.Alaska)

Bankruptcy Estate: Debtor effectively chose to include her interest in spendthrift trust otherwise subject to § 541(c)(2) as part of her bankruptcy estate.  In re Amerson 2016 WL 6310778 (C.A.10)

Case Administration: Debtor’s scheme to misrepresent his financial condition could not override statutory requirement that three or more creditors join in filing involuntary petition.  In re Colon 2016 WL 5820026 (Bkrtcy.D.Puerto Rico)

Real Property: TILA rescission claims were prohibited collateral attack on prepetition state court foreclosure judgment.  In re Albanes 2016 WL 3681453 (Bkrtcy.D.N.J.)

Judgment: Issue preclusion barred some of developer’s claims against entities that allegedly caused his financial ruin and his resort’s bankruptcy.  Blixseth v. Byrne 2016 WL 5928796 (D.Mass.)

Evidence: Parol evidence was not allowable to vary meaning of terms in debtor’s feedstock supply agreement.  Perdue BioEnergy, LLC v. Clean Burn Fuels, LLC 2016 WL 5717232 (M.D.N.C.)

Professionals: Fees and expenses of $28,461.93 requested by Chapter 7 trustee would be reduced to $5,692.39.  In re King 2016 WL 6462113 (Bkrtcy.S.D.Tex.)

Settlements: There was no nonexempt interest in cause of action for trustee to settle.  In re Presswood 2016 WL 5900151 (Bkrtcy.S.D.Ill.)