Westlaw Topical Highlights: Bankruptcy, July 22, 2013

July 22, 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.

Professionals: Court could not sanction creditor for its tardy Rule 3002.1(g) response. Westlaw Topical Highlights Summary Added July 16, 2013 In re Kreidler 2013 WL 1334910 (Bkrtcy.M.D.Pa.)  Where the holder of a claim did not timely respond to the Chapter 13 trustee’s F.R.B.P. 3002.1(f) notice that the mortgage arrearages provided for in the plan had been fully paid, such that the holder’s claim supplement for postpetition arrears was tardy, the bankruptcy court could not impose sanctions on the holder by awarding attorney fees to the debtor, the court concluded. The holder of the claim did, in fact, file a response to the trustee’s notice, as required by Rule 3002.1(g), even though it was considerably late, and the tardiness of the response did not impact the debtor, since her motion for a determination of the status of her mortgage would have been necessary regardless, and she suffered no prejudice. 2013 WL 1334910 (The full-text of the rest of the Topical Highlights are available within Westlaw Next, subscription required)

 Attorney Fees: Attorney would be required to disgorge fee based on deficiencies in performance.  In re Lee 2013 WL 3379367 (Bkrtcy.D.Mass.)

Claims: Employees’ claims could be disallowed on preemption grounds, as within exclusive jurisdiction of NLRB.  In re Hospital de Damas, Inc. 2013 WL 3455793 (Bkrtcy.D.Puerto Rico)

Jurisdiction: Transferee impliedly consented to bankruptcy court’s entry of final judgment in fraudulent transfer proceeding.  In re Pringle 2013 WL 3486837 (9th Cir.BAP (Idaho))

Avoidance: Georgia choice of law rules determined what law applied to strong-arm fraudulent transfer avoidance claims.  In re International Management Associates, LLC 2013 WL 3216141 (Bkrtcy.N.D.Ga.)

Debtor Protections: Creditor that refused to return repossessed car was liable for punitive damages of $17,890, or twice amount of scheduled debt.  In re Stephens 2013 WL 3367720 (Bkrtcy.N.D.Ga.)

Discharge: Estate of debtor’s deceased mother lacked state-law claim required to establish nondischargeability of alleged resulting debt.  In re Smith 2013 WL 3455801 (Bkrtcy.N.D.Miss.)

Claims: Court would disallow late-filed claims against broker-dealer.  In re Lehman Brothers Inc. 2013 WL 3471273 (Bkrtcy.S.D.N.Y.)

Discharge: Time for filing nondischargeability complaint was not automatically extended by Bankruptcy Rule.  In re Gray 2013 WL 3462652 (Bkrtcy.M.D.Fla.)

Attorney Fees: Partner’s fraud could be imputed to debtor even absent a showing of any recklessness on his part or benefit to him.  In re Palilla 2013 WL 3327327 (Bkrtcy.D.Colo.)

Discharge: Creditor failed to show that challenged transfers were made with actual intent to hinder, delay, or defraud creditors.  In re Nascarella 2013 WL 3470997 (Bkrtcy.M.D.Fla.)

Bankruptcy Estate: Debtors could not claim Missouri exemption in unliquidated personal injury claim arising from automobile accident.  In re Abdul-Rahim 2013 WL 3481184 (C.A.8)

Case Administration: “Cause’ did not exist to reopen case to allow debtor to pursue futile claim for relief.  In re Wilson 2013 WL 3214449 (Bkrtcy.S.D.N.Y.)

Business Relationships: Debtor breached contract by attempting to modify it without third-party beneficiary’s consent.  In re Texas Rangers Baseball Partners 2013 WL 3488515 (Bkrtcy.N.D.Tex.)

Avoidance: Half of second lien against property jointly held with non-debtor was subject to being stripped.  In re Harris 2013 WL 1788427 (Bkrtcy.M.D.Pa.)

Bankruptcy Estate: Debtors could not claim Florida state law exemption in state unemployment compensation benefits already paid.  In re Swetic 2013 WL 3455947 (Bkrtcy.M.D.Fla.)

Bankruptcy Estate: Tracing issue could not be resolved on parties’ cross-motions for judgment on the pleadings.  In re Dewey & Leboeuf LLP 2013 WL 3327755 (Bkrtcy.S.D.N.Y.)

Judgment: Alleged unenforceability of indemnification agreement was not “newly discovered evidence.” In re Fundamental Long Term Care, Inc. 2013 WL 3483765 (Bkrtcy.M.D.Fla.)

Debtor Protections: Employment discrimination was not “solely because” of debtor’s failure to pay debts in violation of antidiscrimination statute.  In re Ellis 2013 WL 3480259 (Bkrtcy.D.Colo.)

Claims: Construction mortgage was senior to mechanic’s lien on debtor’s hotel.  In re Moultonborough Hotel Group, LLC 2013 WL 3752482 (C.A.1 (N.H.))