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New Cases For the Week of January 22, 2001 - January
26, 2001
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Source for Business Bankruptcy Information on the Internet AND BKCLAIMS
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January 26,
2001 |
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Case |
Court |
Holding |
| In re Betacom of Phoenix, Inc. (DBN
Subscription Required) |
9th Cir. |
Mandatory subordination under 111 USC 510(b) is not limited
to securities fraud claims, but can be applied to any claims for
damages surrounding the sale or purchase of a security of the
debtor.
The fact that a merger did not close and the
claimants were therefore never owners of the debtor's securities did
not take the claimants' cause of action for damages out of the scope
of 11 USC 510(b). |
| In re James (DBN Subscription
Required) |
8th Cir. BAP |
Contempt is not an appropriate remedy for violation of the
automatic stay. Contempt is available only for violation of a
court order, not a statutory
provision. |
| In re Fellner (DBN Subscription
Required) |
8th Cir. BAP |
In performing a balancing test under 11 USC 523(a0(15), the
bankruptcy court did not err in finding that the monthly $311
payment on the debtor's truck was excessive, since the debtor bore
the burden of proof regarding reasonableness of his expenses, and he
presented no evidence that he could not obtain cheaper
transporation. |
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January 24,
2001 |
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Case |
Court |
Holding |
| In re Jercich (DBN Subscription
Required) |
9th Cir. |
Although 11 USC 523(a)(6) generally applies to torts rather
than to contracts, an intentional breach of contract can give rise
to a nondischargeable liability under 11 USC 523(a)(6) if the breach
is accompanied by tortious conduct which results in willful and
malicious injury.
The BAP erred in holding that nondischargeability
under section 523(a)(6) involving a breach of contract could not
exist unless the subject conduct would be tortious even if a
contract between the parties did not exist.
Since California law imposes a duty on an employer
to pay a departing employee's compensation, the employer's failure
to do so when he had the ability to do so constitutes a tort under
applicable law. |
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January 23,
2001 |
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Case |
Court |
Holding |
| In re Andrews (DBN Subscription
Required) |
5th Cir. |
When a judgment creditor of a bankrupt is itself a judgment
debtor to a third party, the judgment creditor of the bankrupt has
standing to appeal actions taken by the bankruptcy court, even where
the State court has order the bankruptcy claim of the creditor sold
at execution to satisfy the claim of the third party
creditor. |
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