Westlaw Topical Highlights: Bankruptcy, October 31, 2016

October 31, 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.

Bankruptcy Estate: Prepetition property division order prevented retirement funds from entering Chapter 13 estate.  Martin v. Awve, 2016 WL 5415927 (W.D.Wis.) A prepetition property division order entered by a state divorce court, awarding a Chapter 13 debtor’s former wife a fixed sum of money to be paid, by means of a qualified domestic relations order (QDRO), from his retirement plan, gave the ex-wife a vested interest in the retirement plan for the sum of money awarded. Thus, these funds did not enter the bankruptcy estate, and the bankruptcy court did not abuse its discretion in lifting the stay to allow the former wife to execute on her vested interest in the retirement fund. 2016 WL 5415927 (The full-text of the rest of the Topical Highlights is available within Thomson Reuters Westlaw, subscription required).    

Claims: Chapter 13 debtor’s schedules were not substitute for timely proof of claim.  In re Barker 2016 WL 6276078 (C.A.9)

Experts: Experts’ factual narratives were inadmissible in liquidating trustee’s adversary proceeding against entity that acquired debtor prepetition.  In re Lyondell Chemical Company 2016 WL 5900154 (Bkrtcy.S.D.N.Y.)

Avoidance: Fact issues on intermediary’s control over funds precluded entry of summary judgment on earmarking defense.  In re USA United Fleet, Inc. 2016 WL 5400399 (Bkrtcy.E.D.N.Y.)

Appeals: Debtor law firm and non-debtor firm attorney were not entitled to stay pending appeal of remand order.  In re James F. Humphreys & Associates, L.C. 2016 WL 5373854 (Bkrtcy.S.D.W.Va.)

Discharge: Doctrine of issue preclusion did not bar Chapter 7 debtors from contesting creditor’s claim that debt in question was nondischargeable.  In re Bodrick 2016 WL 6216099 (Bkrtcy.S.D.Ohio)

Claims: Bankruptcy court did not abuse its discretion in declining to certify class of claimants seeking damages arising from their exposure to asbestos.  In re Energy Future Holdings Corp. 2016 WL 5572658 (D.Del.)

Claims: Interline freight charges were “necessarily” incurred, as required to support priority “six months” claim.  Montreal, Maine & Atlantic Railway, Ltd. 2016 WL 6236313 (1st Cir.BAP (Me.))

Debtor Protections: Cause did not exist to lift the automatic stay to allow tax sale purchaser to pursue quiet title action.  In re Ferrouillat 2016 WL 6157893 (Bkrtcy.S.D.Ala.)

Debtor Protections: Chapter 11 debtor law firm was entitled to preliminary injunction restraining prosecution of legal malpractice action against firm’s principal.  In re James F. Humphreys & Associates, L.C. 2016 WL 5376054 (Bkrtcy.S.D.W.Va.)

Limitations: Adverse domination rule tolled statute of limitations for corporation to bring suit against its principal for amounts owed under loan agreement.  In re Mollie Enterprises, Inc. 2016 WL 5405051 (N.D.Ill.)

Withdrawal of Reference: “Cause” did not exist for permissive withdrawal of reference of noncore claims on which defendants had right to jury trial.  In re: AgFeed USA, LLC 2016 WL 5400357 (D.Del.)

Jurisdiction: Bankruptcy court lacked jurisdiction over debtor’s adversary proceeding against lender alleging violations of Fair Credit Reporting Act and state law.  In re Davis 2015 WL 12684641 (Bkrtcy.W.D.Tenn.)

Avoidance: Junior residential mortgage lien was supported by at least some equity and not subject to strip off.  In re Miller 2016 WL 5942306 (Bkrtcy.E.D.Pa.)

Claims: No improper netting was shown, as required to support claims for underpayment of royalties.  In re Samson Resources Corporation 2016 WL 4768793 (Bkrtcy.D.Del.)

Avoidance: Chapter 7 trustee was entitled to avoidance of debtor’s purchase of pink diamond as fraudulent transfer.  In re Worldwide Diamond Ventures, LP 2016 WL 5395832 (Bkrtcy.N.D.Tex.)

Bankruptcy Estate: Portion of debtors’ tax refund attributable to additional child tax credit was exempted as benefit received under public assistance legislation.  In re Farnsworth 2016 WL 5929627 (Bkrtcy.D.Idaho)

Case Administration: Dismissal of debtor’s concurrent Chapter 13 case was warranted.  In re Chain 2016 WL 5800469 (Bkrtcy.W.D.Pa.)

Discharge: Former employer plausibly pled that its judgment against debtor fell within scope of discharge exception for debts for willful and malicious injury.  In re Florimonte 2016 WL 6134807 (Bkrtcy.M.D.Pa.)

Discharge: Debtor did not intend to deceive creditor by omitting $120,000 obligation from loan application, as required to except debt from discharge.  In re Fenner 2016 WL 6157434 (Bkrtcy.N.D.Ill.)

Claims: Debtor’s Chapter 13 plan terminated stay of distribution of escrowed funds.  In re Wolf 2016 WL 6024500 (Bkrtcy.E.D.Pa.)

Discovery: Official committee of unsecured creditors was entitled to conduct examination of company to which debtors had made payments.  In re Great Lakes Comnet, Inc. 2016 WL 6081100 (Bkrtcy.W.D.Mich.)

Claims: Debtor’s payment to her son of proceeds of sale of vehicle in which he held security interest qualified as contemporaneous exchange for new value.  In re Rosich 2016 WL 6091515 (Bkrtcy.W.D.Mich.)

Claims: Scheduled claim of son of debtor’s president would be disallowed as an unsecured claim.  In re Eternal Enterprise, Inc. 2016 WL 5239761 (Bkrtcy.D.Conn.)

Claims: Debtor and creditor could not contractually modify the requirements of the Louisiana Oil Well Lien Act (LOWLA).  Harvey Gulf International Marine, Inc. v. Bennu Oil & Gas, LLC 2016 WL 5105021 (S.D.Tex.)