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New Cases For the Week of October 14, 2002
- October 18, 2002
Brought to you by BKINFORMATION.COM
- The Source for Business Bankruptcy Information on the Internet
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October
18, 2002
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Case
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Court
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Holding
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LNC
Investments, Inc. v. National
Westminster Bank, N.J
(DBN Subscription Required) |
2d
Cir. |
Because
it would be irrelevant to review of the
jury verdict, the Court of Appeals
declined to decide the unsettled issue of
whether a creditor whose loan is secured
with collateral in the possession of the
debtor and who asks the bankruptcy court
either to lift the automatic stay with
respect to taking possession of the
collateral or to direct the debtor to
provide additional "adequate
protection" of that collateral, and
whose motion is denied by the bankruptcy
court, is nevertheless entitled (as he or
she would be if the motion were granted)
to an "administrative superpriority"
claim for any amount by which the
creditor's claim becomes unsecured by
virtue of the decline in the value of the
collateral. |
Middle
Mountain Land and Produce Inc.
v. Sound Commodities Inc.
(DBN Subscription Required) |
9th
Cir. |
A
PACA claimant is entitled to
payment of interest and
attorneys fees if its
documents so provide. |
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October
17, 2002
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Case
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Court
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Holding
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In
re Loudon
(DBN Subscription Required) |
8th
Cir. BAP |
Relief
from stay to permit a claim to be
liquidated in State Court is discretionary
and is sometimes appropriate. Factors to
be considered are: (1) judicial economy;
(2) trial readiness; (3) the resolution of
preliminary bankruptcy issues; (4) the
creditor's chance of success on the
merits; and (5) the cost of defense or
other potential burden to the bankruptcy
estate and the impact of the litigation on
other creditors. |
Patterson
Frozen Foods, Inc. v. Crown
Foods International, Inc.
(DBN Subscription Required) |
7th
Cir. |
A
postdefault agreement between
a debtor and a putative PACA
creditor destroyed the
creditor's PACA rights where
the agreement gave the debtor
more than 30 days to pay. |
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