New Cases For the Week of October 21, 2002 - October 25, 2002

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October 22, 2002

Case

Court

Holding

In re Bankruptcy Estate of MarkAir, Inc.
(DBN Subscription Required)
9th Cir. The term "tax lien" in § 724(b) means a statutory tax lien and that the term does not embrace a judicial lien securing an underlying tax obligation.
In re Kaelin
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8th Cir. The bankruptcy court clearly erred in finding that a debtor's effort to amend his exemption schedule was in bad faith.
In re MarkAir, Inc.
(DBN Subscription Required)
9th Cir. Under 11 USC 724(b), a tax lien is subordinated to certain claims only up to the amount of the secured tax claim.
In re Healthco International, Inc.,
(DBN Subscription Required)
1st. Cir. A prevailing party in postpetition litigation with a bankruptcy estate is entitled to recovery of its costs as an administrative expense.
In re Financial Federated Title & Trust, Inc.
(DBN Subscription Required)
11th Cir. The bankruptcy court erred in denying an avoidance defendant a right to jury trial when the right was asserted in response to an amended complaint asserting new theories of recovery.

There is no per se rule that services provided by third parties that further a Ponzi scheme are disqualified as good faith new value under 11 USC 548(c).  Services provided in good faith can qualify the a 548(c) defense even though all payments from a Ponzi scheme necessarily drive the scheme further into insolvency. 

In re Wilson
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8th Cir. BAP A bankruptcy court has the authority to sua sponte dismiss a case filed in an improper district, but the debtor is entitled to notice and an opportunity to be heard prior to such action.
 
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