Westlaw Topical Highlights: Bankruptcy, July 18, 2016

July 18, 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.

Debtor Protections: Automatic stay protected debtor’s bare possessory interest in property.  In re Sullivan, 2016 WL 3640351 (Bkrtcy.D.Mass.) A bankruptcy judge in Massachusetts has held that while, as a result of a prepetition foreclosure sale and title transfer to the bank, mortgage property never became part of the bankruptcy estate, the automatic stay continued to protect the debtor’s bare possessory interest in the property, as an estate asset. It prevented the bank from proceeding with a cause of action to evict the debtor from the property without first obtaining relief from the stay. 2016 WL 3640351  (The full-text of the rest of the Topical Highlights is available within Thomson Reuters Westlaw, subscription required).    

Venue: Bankruptcy court would not transfer adversary proceeding asserting fraudulent transfer claims to district court.  In re DRI Companies 2016 WL 3574890 (Bkrtcy.C.D.Cal.)

Claims: Asbestos claims against debtor’s successor were channeled and enjoined.  In re Johns-Manville Corp. 2016 WL 3574051 (Bkrtcy.S.D.N.Y.)

Real Property: Debtor, though owner of historic beach club destroyed by fire, was not entitled to any insurance proceeds.  In re Trustees of Conneaut Lake Park, Inc. 2016 WL 2591071 (W.D.Pa.)

Plans: Bankruptcy court had authority to modify Chapter 13 plan based on postconfirmation increase in debtors’ income.  Germeraad v. Powers 2016 WL 3443342 (C.A.7 (Ill.))

Appeals: Court would not grant leave to appeal Bankruptcy Court’s interlocutory order in adversary proceeding.  Buckskin Realty Inc. v. Greenberg 2016 WL 3636018 (E.D.N.Y.)

Appeals: Asset purchaser lacked standing to appeal professional fee award.  In re GT Automation Group, Inc. 2016 WL 3648383 (C.A.7 (Ind.))

Leases and Contracts: Bankrupt coal producers can reject CBAs in liquidating Chapter 11 case.  In re Alpha Natural Resources, Inc. 2016 WL 3093039 (Bkrtcy.E.D.Va.)

Case Administration: Debtor was not eligible for Chapter 7 discharge.  In re Kramer 2016 WL 3632810 (Bkrtcy.E.D.Mich.)

Jurisdiction: Debtor’s pro se adversary complaint against lender’s successor was barred by the doctrine.  In re Guy 2016 WL 3625665 (Bkrtcy.D.S.C.)

Judgment: Debtor was not entitled to relief from consent judgment that settled nondischargeability proceedings and sanctions motion.  In re Koper 2016 WL 3078957 (Bkrtcy.E.D.N.Y.)

Claims: Creditor stated plausible claim for recharacterizing loan as capital contribution.  In re 201 North George St., LLC 2016 WL 1633081 (Bkrtcy.N.D.W.Va.)

Avoidance: Interest payments on notes were not “settlement payments” under “safe harbor” to avoidance.  In re Motors Liquidation Company 2016 WL 3574067 (Bkrtcy.S.D.N.Y.)

Debtor Protections: Punitive damages of $250,000 warranted for creditor’s intransigence after willfully violating stay.  In re Mocella 2016 WL 3611816 (Bkrtcy.N.D.Ohio)

Discharge: Evidence supported determination that debtor committed fraud in obtaining home-equity loan on behalf of himself and his grandparents.  In re Hernandez 2016 WL 3248228 (D.Minn.)

Bankruptcy Estate: Contract funds owed to debtor on petition date were property of the estate, notwithstanding surety’s claim to the funds.  In re Glenbrook Group, Inc. 2016 WL 3092240 (Bkrtcy.N.D.Ill.)

Class Actions: Duplicative WARN Act class proceeding by debtors’ ex-employees would be dismissed.  In re TransCare Corp 2016 WL 3079805 (Bkrtcy.S.D.N.Y.)

Avoidance: “Transfers” occurred under writ of continuing garnishment as debtor earned wages.  In re Stevens 2016 WL 3082692 (Bkrtcy.D.Colo.)

Claims: Chapter 13 trustee was not required to file an objection to an unsecured claim prior to entry of the order of plan confirmation.  In re Clark 2016 WL 3548815 (Bkrtcy.N.D.Okla.)

Claims: Homeowners association’s claim for assessments, costs, expenses, and attorney fees would be allowed as a secured claim.  In re Foster 2016 WL 3633071 (Bkrtcy.D.S.C.)

Claims: Pre-petition settlement agreement creditors reached with debtor limited liability company (LLC) was procured by fraud.  In re Starlight Group, LLC 2016 WL 3050101 (Bkrtcy.E.D.Va.)