New Cases For the Week of February 5, 2001 - February 9, 2001

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February 8, 2001

Case

Court

Holding

In re Tobin
(DBN Subscription Required)
9th Cir. BAP For nondischargeability purposes, imputing vicarious liability to an innocent  shareholder of a corporation when an alter ego finding is made is inconsistent with the fresh start policies of the Bankruptcy Code.
In re General Carriers Corp.
(DBN Subscription Required)
9th Cir. BAP Because of the Barton Doctrine (requiring that a suit against a trustee in his official capacity cannot be brought without leave of court) the trustee of a bankruptcy estate acted improperly in suing the ex-trustee of the bankruptcy trustee in State court, and then asking the bankruptcy court to "abstain" from hearing the suit, which had not even been removed to bankruptcy court.
In re: Tsurukaw, Etsuko
(DBN Subscription Required)
9th Cir. BAP For nondischargeability purposes, vicarious imputation of a husband's wrongful acts to his wife is improper when there was no finding that the wife intended to defraud the creditor.
In re Houweling 8th Cir. BAP When a creditor which filed a late notice of appeal to an order granting a motion to redeem, and the bankruptcy court denied the creditor's motion for an extension of the 10-day appellate deadline, the sole issue on appeal was whether the bankruptcy court erred in denying the motion for extension (implicitly finding the absence of "excusable neglect"), and not whether the court erred in granting the motion to redeem.

Since the creditor offered no evidence that its late appeal was the result of excusable neglect, the bankruptcy court's denial of an extension of the appellate deadline was not error.

February 7, 2001

Case

Court

Holding

Walton v. Jamko
(DBN Subscription Required)
11th Cir. The Office of the United States Trustee is required to collect postconfirmation fees from a debtor calculated as a percentage of all of the debtor's disbursements (including ordinary operating expenses), not merely  the disbursements made pursuant to the confirmed plan.
Aiello v. Providian Financial
(DBN Subscription Required)
7th Cir. An individual injured by a violation of the automatic stay may not recover emotional distress damages under 11 USC 362(g) on account of such a violation.  The protection, afforded by the stay is financial in character; it is not protection of peace of mind. "Bankruptcy is a harrowing experience, for the bankrupt but sometimes for the creditors as well. The Bankruptcy Code was not drafted with reference to the emotional incidents of bankruptcy, and bankruptcy judges are not selected with reference to their likely ability to evaluate claims of emotional injury."  
In re Hunt
(DBN Subscription Required)
9th Cir. A creditor which was prevented by technical procedural rule violations from offering all of its evidence in a nondischargeability proceeding was liable for the debtor's attorney's fees, since the evidence that the creditor was able to have admitted had virtually no tendency to prove that the debtor acted in the manner alleged in the complaint.

Although the debtor did include a prayer for an award of attorneys' fees under 11 USC 523( d) in his answer to a nondischargeability complaint, he did include such a request in his pretrail conference statement, which was incorporated by reference in the court's pretrial order, effectively amending the pleadings.

 
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