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New Cases For the Week of July 15, 2002 - July
19,
2002
Brought to you by BKINFORMATION.COM
- The Source for Business Bankruptcy Information on the Internet
July
18, 2002
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Case
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Court
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Holding
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Board
of Trustees Teamsters Local 863 v. Foodtown
(DBN Subscription Required) |
3rd Cir. |
Postpetition
claims against alleged alter egos of the debtor for ERISA
pension withdrawal liability were not property of the
estate. The claims were particular, rather than general.
The injury sustained was not insolvency stemming from
actions of the alleged alter egos, but rather the alter egos
evasion of withdrawal liability. Moreover, the withdrawal
liability obligation is not owed to the debtor, it is owed to
the pension plan. |
In
re Cash Cow Services of Florida
(DBN Subscription Required) |
11th
Cir. |
Payments
made by a preconfirmation Chapter 11 debtor on account of
prepetition "title loans" and "check
loans" were disbursements for purpose of calculating the
quarterly fees owed to the Office of the United States Trustee |
In
re Bonds Distributing
(DBN Subscription Required) |
4th Cir. |
The
bankruptcy court erred in ruling that the complete omission of
a creditor's address from a financing statement rendered the
statement fatally defective. The statement substantially
complied with the overall purpose of the recording
statute. Applicable State law focuses on the notice
function of the financing statement, and the statement clearly
placed the world on notice of the existence of a security
interest. If an existing or potential creditor wanted to
obtain more information concerning the secured transaction
from the secured party, it could take the unremarkable step of
tracking down the creditor. |
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July
16, 2002
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Case
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Court
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Holding
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In
re Price
(DBN Subscription Required) |
9th Cir. BAP |
For
707(b) purposes, debts secured by a purchase money mortgage on
a residence can be consumer debt, as can debts secured by
exempt property. |
In
re Deville
(DBN Subscription Required) |
9th Cir. BAP |
Under
Rule 9011, the bankruptcy court does not have authority to
award sua sponte attorneys' fees sanctions payable to another
party. Such an award can however be justified under the
Court's inherent authority to police bad faith conduct. Rule
9011 does authorize imposition of a penal sanction in excess
of the amount of reasonable attorneys fees, but such a
sanction must be payable to the Court. |
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July
15, 2002
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Case
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Court
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Holding
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In
re Gulf Coast Seafood
(DBN Subscription Required) |
5th Cir. |
In
an ordinary course defense in a preference case, for an
industry standard to be useful as a rough benchmark, the
creditor should provide evidence of credit arrangements of
other debtors and creditors in a similar market, preferably
both geographic and product. The creditor should provide
evidence, to the extent that it is reasonably available, of
credit practices between suppliers to whom the debtor might
reasonably turn for its supply and firms with whom the debtor
competes for consumers, from which a bankruptcy judge can
determine whether there is some basis to find that the
creditor-debtor arrangement is not a virtual stranger in the
industry. |
In
re Salter
(DBN Subscription Required) |
9th Cir.
BAP |
A
BAP has authority to issue a writ of mandamus |
In
re Paschen
(DBN Subscription Required) |
11th
Cir. |
11
U.S.C. § 1322(c)(2) permits Chapter 13 debtors to bifurcate
undersecured, short-term home mortgages into secured and
unsecured claims, with the unsecured claim subject to
"cramdown" pursuant to 11 U.S.C. § 1325(a)(5). |
In
re McCloy
(DBN Subscription Required) |
5th Cir. |
Although
the Bankruptcy Code contains a prohibition on the entry of an
involuntary order for relief against farmers, the prohibition
is not jurisdictional, but is an affirmative defense which can
be waived. |
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