New Cases For the Week of July 9, 2001 - July 13, 2001

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July 12, 2001

Case

Court

Holding

C.F. Trust v. Peterson
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4th Cir. In a suit against a guarantor, the trial court did not err in declining to give res judicata effect to a final report in bankruptcy in which the holder of the subject debt voluntarily agreed to reduce the amount it would seek from the bankruptcy estate of the principal debtor.  The concession was made to avoid litigation with the bankruptcy estate and did not operate to reduce the amount of the debt or the ability of the owner of the debt to pursue the guarantor for the full unpaid amount.

July 9, 2001

Case

Court

Holding

In re Debby Reynolds Hotel & Casino, Inc.
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9th Cir.  Under the Supreme Court's holding in Hartford Underwriters Ins. Co. v. Union Planters Bank, a third party which might be entitled to surcharge reimbursement has no standing to challenge a DIP's surcharge settlement on behalf of another claimant, since the DIP is the gatekeeper of the surcharge function.

A contractual agreement between a DIP and a secured creditor (entered into as part of a Court-approved settlement regarding a single surcharge claim in favor of a law firm), that no further surcharge claims would be brought against the secured creditor lacked legal effect.

 
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