Westlaw Topical Highlights: Bankruptcy, June 5, 2013

June 10, 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.

Discharge: Debtor’s implied representations in using unrevoked credit card was not “false pretense” or “false representation.”  In re Quinn 2013 WL 2436220 (Bkrtcy.N.D.Ga.)

A Chapter 7 debtor’s continued use, in the months leading up to bankruptcy, of her credit card to make allegedly unnecessary purchases, at a time when the credit card issuer had not revoked the debtor’s right to use the card, did not provide a basis to except the resulting debt from discharge on a “false pretenses” or “false representation” theory, based on implied misrepresentations that the debtor allegedly made in using the credit card. However, fact issue regarding the debtor’s intent to repay the credit card charges precluded entry of summary judgment on the issuer’s “actual fraud” nondischargeability claim. (The full-text of the rest of the Topical Highlights are available within Westlaw Next, subscription required)

Claims: State agency’s claims for reimbursement of unemployment benefits paid to nonprofit debtor’s former employees did not seek tax.  In re Community Memorial Hosp. 2013 WL 2297042 (Bkrtcy.E.D.Mich.)

Claims: Challenge to bank’s standing to enforce mortgage was barred by judgment in foreclosure action.  In re Schmid 2013 WL 1755550 (Bkrtcy.W.D.Wis.)

Class Actions: Members of certified class seeking monetary damages had not been identified, warranting decertification of class.  In re Montano 2013 WL 2244216 (Bkrtcy.D.N.M.)

Avoidance: ERISA’s anti-alienation provision did not prohibit fraudulent transfer claims.  In re Vaughan Co., Realtors 2013 WL 2304218 (Bkrtcy.D.N.M.)

Bankruptcy Estate: Vacant parcel adjacent to land containing debtors’ dwelling could not be exempted under Wisconsin homestead statutes.  In re Isaacs 2013 WL 2364174 (Bkrtcy.W.D.Wis.)

Plans: Chapter 13 debtor did not satisfy burden on “tax refund” issue.  In re Ramos 2013 WL 2403489 (Bkrtcy.D.Puerto Rico)

Plans: Security interest in fixtures did not deprive bank of protections of antimodification provision.  In re Shull 2013 WL 2371445 (Bkrtcy.M.D.Pa.)

Leases and Contracts: Modification of Chapter 11 debtor’s obligation to retirees affects funding obligation of entity under assumption contract.  In re Patriot Coal Corp. 2013 WL 2354057 (Bkrtcy.E.D.Mo.)

Plans: Proposed “hybrid” Chapter 13 plan, exercising both payment and surrender options as to single claim, was unconfirmable.  In re Hurd 2013 WL 2403491 (Bkrtcy.W.D.N.Y.)

Case Administration: Second, successive Chapter 11 case had to be dismissed as “bad faith” filing.  In re Triumph Christian Center, Inc. 2013 WL 2303787 (Bkrtcy.S.D.Tex.)

Professionals: State-court officer who seized debtors’ automobiles prepetition qualified as a “custodian.”  In re Ohakpo 2013 WL 794347 (Bkrtcy.E.D.Mich.)

Discharge: Debtor’s cursory review of his bankruptcy petition did not warrant denial of discharge.  Dranichak v. Rosetti 2013 WL 2237821 (N.D.N.Y.)

Leases and Contracts: Debtors were entitled to reject their collective bargaining agreement based on union’s refusal of necessary changes.  In re Patriot Coal Corp. 2013 WL 2354049 (Bkrtcy.E.D.Mo.)

Discharge: No proof that debtor acted with fraudulent intent in concealing business income and inventories.  In re Sullivan 2013 WL 2367795 (Bkrtcy.M.D.Ga.)

Business Relationships: Reorganized debtors seeking to recover insider preferences failed to adequately allege elements for veil-piercing.  Capmark Financial Group Inc. v. Goldman Sachs Credit Partners L.P. 2013 WL 1420243 (S.D.N.Y.)

Discharge: Property owner justifiably relied on debtor’s false certifications in monthly payment applications.  SG Homes Associates, LP v. Marinucci 2013 WL 2418932 (C.A.4 (Md.))

Claims: Bank could not perfect its security interest in Chapter 13 debtors’ real property postpetition.  In re Ramos 2013 WL 2304261 (Bkrtcy.D.Puerto Rico)

Professionals: Nonattorney BPPs’ references to legal education and J.D. degree violated § 110(f).  In re Rosario 2013 WL 2338244 (Bkrtcy.D.Mass.)

Bankruptcy Estate: Debtor’s interest in prepetition alimony award was included in Chapter 7 estate.  In re Mehlhaff 2013 WL 2402435 (8th Cir.BAP (S.D.)

Debtor Protections: Debtor’s “arguable” interest in property owned by spouse was insufficient to trigger protections of stay.  In re Fadel 2013 WL 2369998 (9th Cir.BAP (Cal.)