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New Cases For the Week of October 6,
2003 - October 10, 2003
Brought to you by BKINFORMATION.COM
- The Source for Business Bankruptcy Information on the Internet
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October
10, 2003
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Case
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Court
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Holding
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In
re Stern
(DBN Subscription Required) |
9th
Cir. |
The
purposeful conversion of nonexempt assets
to exempt assets on the eve of bankruptcy
is not fraudulent per se. |
In
re Visionaire Corporation
(DBN Subscription Required) |
8th
Cir. BAP |
Where
a postpetition lender did not obtain a
final ruling on its superpriority status
until after the case had been converted to
Chapter 7, the court was within its
discretion in modifying the lending order
to rule that: (i) advances made during the
15-day period following entry of the
interim order were entitled to
superpriority, but (ii) advances made
between 16 days and entry of a final order
were subordinate to Chapter 7
administrative expenses. Parties to forms
of post-petition lending must protect
their priority status, if the court is so
inclined to grant it, by obtaining a final
order that clearly sets out the parties'
intention. |
In
re Diamond
(DBN Subscription Required) |
Ist
Cir. |
Negotiations
regarding a § 727 challenge to discharge
are permissible, so long as the creditor
does not engage in coercive or harassing
tactics. Where an unsecured creditor's
negotiation statement (i.e., "I will
report you to the licensing board if you
do not settle this § 727 action")
functionally forces the debtor to treat a
professional license as collateral, a
cause of action exists for violation of
the automatic stay. |
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October
9, 2003
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Case
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Court
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Holding
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In
re Jones
(DBN Subscription Required) |
1st
Cir. BAP |
The
bankruptcy court did not err in finding
that a debtor faced with a
nondischargeability complaint arising from
sexual harassment allegations was
collaterally estopped by the prepetition
findings and monetary award of a State
commission against discrimination. |
In
re Just For Feet, Inc.
(DBN Subscription Required) |
Bankr.
DE |
The
Ch. 7 trustee failed to establish good
cause for an extension of time to reserve
improperly served avoidance defendant |
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October
8, 2003
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Case
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Court
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Holding
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In
re Solomon
(DBN Subscription Required) |
10th
Cir. BAP |
The
bankruptcy court did not err in avoiding
two prepetition mortgages as fraudulent
transfers on the grounds that the
insolvent debtor failed to receive
reasonably equivalent value in exchange
for the mortgages. |
In
re Discovery Zone, Inc.
(DBN Subscription Required) |
Bankr.
DE |
A
creditor advanced "new value"
during the preference period when the
debtor continued to use the creditors'
trademarks and other intellectual property
without paying license fees. |
In
re Mariner Health Group
(DBN Subscription Required) |
Bankr.
DE |
The
bankruptcy court declines to follow a
Texas district court Erie holding that
Texas public policy prohibits insurance
against punitive damages |
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October
7, 2003
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Case
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Court
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Holding
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Wolkowitz
v. Redlands Ins. Co.
(DBN Subscription Required) |
Cal.
App. 2d |
Bankruptcy
court's allowance of claim against estate
does not constitute
"adjudication" of claim for
insurance purposes. |
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October
6, 2003
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Case
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Court
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Holding
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In
re Umali
(DBN Subscription Required) |
9th
Cir. |
A
bankruptcy petition filed in violation of
a court-imposed 180-day bar is properly
excluded from the automatic stay
provisions of the bankruptcy code. |
In
re Financial Federated Title and Trust
(DBN Subscription Required) |
11th
Cir. |
Debtors
who purchased their Florida home with
fraudulently obtained funds were not
protected by the Florida Constitution
homestead provisions against an equitable
lien or constructive trust |
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