Westlaw Topical Highlights: Bankruptcy, July 15, 2013

July 15, 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.

Avoidance: Bankruptcy Code impliedly preempted litigation trustee’s attempt to avoid novation.

Whyte v. Barclays Bank PLC 2013 WL 2489925 (S.D.N.Y.) The Bankruptcy Code provision prohibiting a bankruptcy estate representative from avoiding transfers made by a swap participant in connection with any swap agreement made before commencement of the case impliedly preempted an attempt by the trustee of a debtor’s litigation trust to avoid a novation of the debtor’s portfolio of commodities derivatives as fraudulent conveyance under state law. The novation qualified as a swap transaction, and was entered into before the bankruptcy filing. 2013 WL 2489925 (The full-text of the rest of the Topical Highlights are available within Westlaw Next, subscription required)

Avoidance: Chapter 13 debtor could not void federal tax lien to extent that it exceeded total value of his possessions.  In re Ryan 2013 WL 3380131 (C.A.7 (Ill.))

Debtor Protections: Post-confirmation stay relief motion predicated solely on pre-confirmation grounds lacks “cause” and is not well taken.  In re Morrow 2013 WL 3270762 (Bkrtcy.N.D.Ill.)

Appeals: Chapter 7 debtor lacked standing to appeal order concerning settlement of prepetition cause of action.  In re Peoples 2013 WL 3335060 (8th Cir.BAP (Mo.))

Plans: Confirmed plan was not resurrected upon reinstatement of Chapter 13 case dismissed for payment default.  In re Murphy 2013 WL 3327039 (Bkrtcy.D.Colo.)

Plans: Plan providing full payment on nondischargeable debt and loess than 1% dividend to other unsecured creditors was unfairly discriminatory.  In re Towler 2013 WL 3326735 (Bkrtcy.D.Colo.)

Debtor Protections: Debtors’ own responsibility for stay violations counseled against award of damages.  In re Baetz 2013 WL 3326658 (Bkrtcy.D.Colo.)

Plans: Court could not compel Chapter 13 debtors to surrender mortgaged property.  In re Jimenez 2013 WL 3158074 (Bkrtcy.S.D.N.Y.)

Avoidance: Insurer was mere conduit, rather than transferee, on premium payments.  In re Brown Publishing Company 2013 WL 3231673 (Bkrtcy.E.D.N.Y.)

Plans: Plan providing for vesting of mortgage property in mortgagee could be confirmed on “acceptance” theory.  In re Rosa 2013 WL 3380166 (Bkrtcy.D.Hawai’i)

Avoidance: State law exception to homestead exemption did not affect debtor’s ability to avoid lien on exemption-impairment grounds.  In re Moore 2013 WL 3387776 (8th Cir.BAP (Mo.))

Abstention: Court would exercise its discretion to abstain, even assuming that it could exercise jurisdiction.  In re New England Compounding Pharmacy, Inc. Products Liability Litigation 2013 WL 2932895 (D.Mass.)

Discharge: Debtor’s admission to assault and battery, without more, did not establish “willful and malicious injury.”  In re Elias 2013 WL 3353849 (Bkrtcy.D.Mass.)

Bankruptcy Estate: Foreclosed accounts were not included in “property of the estate,” and proceeds had to be turned over to bank.  International Home Products, Inc. v. First Bank of Puerto Rico, Inc. 2013 WL 3291808 (D.Puerto Rico)

Crimes and Contempt: Government was not estopped from prosecuting former Chapter 11 debtor on charge of bankruptcy obstruction.  U.S. v. Modanlo 2013 WL 1856356 (D.Md.)

Crimes and Contempt: Prior state-court proceedings did not collaterally estop prosecution of former debtor on bankruptcy obstruction and other charges.  U.S. v. Modanlo 2013 WL 3009304 (D.Md.)

Discharge: Diversion of business opportunities was not “embezzlement” of any “property.”  In re Tashlitsky 2013 WL 3338504 (Bkrtcy.E.D.N.Y.)

Claims: Debtor waived claims by not raising them in prior state-court action against lender.  In re Fleming 2013 WL 2026862 (Bkrtcy.M.D.Pa.)

Jurisdiction: Bankruptcy court lacked jurisdiction over non-core claims based on prepetition matters asserted post-plan confirmation.  In re Transcontinental Refrigerated Lines, Inc. 2013 WL 2480883 (Bkrtcy.M.D.Pa.)

Bankruptcy Estate: Real property purchased prepetition by debtor using paramour’s funds was not part of the bankruptcy estate.  In re Pena 2013 WL 2948162 (D.Puerto Rico)

Jurisdiction: District court could exercise personal jurisdiction over debtors’ officers and directors.  Redhawk Global, LLC v. World Projects Intern. 2013 WL 2948383 (S.D.Ohio)