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New Cases For the Week of May 26,
2003 - May 30, 2003
Brought to you by BKINFORMATION.COM
- The Source for Business Bankruptcy Information on the Internet
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May
30, 2003
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Case
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Court
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Holding
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Official
Committee of Unsecured Creditors of
Cybergenics Corp., v. Chinery
(DBN
Subscription Required) |
3rd
Cir. |
The
United States Supreme Court in Hartford
Underwriters Ins. Co. v. Union Planters
Bank, 530 U.S. 1 (2000) does not operate
to prevent the Bankruptcy Court from
authorizing a creditors' committee to
pursue the estate's causes of action for
the benefit of the estate, under
appropriate circumstances. |
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May
29, 2003
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Case
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Court
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Holding
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In
re FBI Distribution Corp.
(DBN Subscription Required) |
1st
Cir. |
A
Chapter 11 debtor in possession was not
required to pay in excess of $1.2 million
in severance pay, pursuant to the terms of
two prepetition contracts, as an
administrative expense to an executive who
was terminated after rendering
post-petition services. |
In
re Cantrell
(DBN Subscription Required) |
9th
Cir. |
Although
officers and directors of California
corporations are imbued with the fiduciary
duties of an agent and certain duties of a
trustee, they are not trustees with
respect to corporate assets. California
corporate law simply does not provide the
same trust relationship between corporate
principals and the corporation as
California partnership law provides
between partners and a partnership. The
mere fact that a debtor was an officer or
director of a California corporation
therefore does not make the debtor a
fiduciary for purposes of
nondischargeabilty under 11 USC 523(a)(4). |
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May
27, 2003
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Case
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Court
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Holding
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40235
Washington Street Corporation v. Lusardi
(DBN Subscription Required) |
9th
Cir. |
Section
549(c) does not create an exception to
section 362(a).
The
district court did not err in quieting
title in the debtor to property that was
sold postpetition at a tax foreclosure
sale in violation of the automatic stay,
even though the debtor's bankruptcy was
dismissed for bad faith shortly
afterward. Actions in violations of
the stay are void. |
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