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New Cases For the Week of June 16,
2003 - June 20, 2003
Brought to you by BKINFORMATION.COM
- The Source for Business Bankruptcy Information on the Internet
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June
17, 2003
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Case
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Court
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Holding
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In
re Metro Fulfillment, Inc.
(DBN Subscription Required) |
9th
Cir. BAP |
Under
the Reading exception, claims for penalty
wages under California law for failure to
timely pay postpetition wages, and for
paying postpetition wages with checks
drawn on insufficient funds, are entitled
to administrative priority under §
503(b)(1)(A). |
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June
17, 2003
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Case
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Court
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Holding
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In
re Vebeliunas
(DBN Subscription Required) |
2d
Cir. |
The
question whether the "alter ego
theory" of piercing applies to trusts
is a matter of state law. In the absence
of evidence that: (i) the subject trust
was used to conceal assets from creditors
or (ii) the debtor is the equitable owner
of the trust, the court declines to decide
whether New York law authorizes piercing
in this case. |
In
re Bradley
(DBN Subscription Required) |
8th
Cir. BAP |
Debtors
did not act fraudulently when they
converted non-exempt property to exempt
property |
In
re Logue
(DBN Subscription Required) |
8th
Cir. BAP |
The
bankruptcy court did not err in declining
to except from discharge under 11 USC
523(a)(6) a debt arising from the debtor's
prepetition and postpetition unauthorized
sales of cattle which secured the debt.
Malice
requires conduct more culpable than that
which is in reckless disregard of the
creditor's economic interests and
expectancies. The debtor's knowledge that
he or she is violating the creditor's
legal rights is insufficient to establish
malice absent some additional aggravated
circumstances. Conduct which is certain or
almost certain to cause financial harm to
the creditor is required. In the context
of the breach of a security agreement, a
willful breach is not enough to establish
malice. Debtors who willfully break
security agreements are testing the outer
bounds of their right to a fresh start,
but unless they act with malice by
intending or fully expecting to harm the
economic interests of the creditor, such a
breach of contract does not, in and of
itself, preclude a discharge. |
In
re Rodgers
(DBN Subscription Required) |
2d
Cir. |
Since
a prepetition public auction by a New York
County taxing agency extinguished all of
the debtor's legal and equitable interests
in the property, the bankruptcy court did
not err in declining to hold the agency in
contempt for its postpetition did not bar
transfer and recording of the deed. |
Schwab
v. GMAC Mortgage Corp
(DBN Subscription Required) |
3rd
Cir. |
The
lien of a mortgage was not affected by the
fact that the notary public's embossed
seal was not visible in the acknowledgment
on the document filed in the County
Recorder of Deeds Office |
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