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New Cases For the Week of July 14,
2003 - July 18, 2003
Brought to you by BKINFORMATION.COM
- The Source for Business Bankruptcy Information on the Internet
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July
17, 2003
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Case
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Court
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Holding
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In
re Colarusso
(DBN Subscription Required) |
1st
Cir. BAP |
The
bankruptcy court did not err in holding
that the debtor's interest in real
property could be sold free and clear of
an asserted, unadjudicated adverse
possession right. Moreover, the adverse
possession claimant's failure to object to
the sale, or to seek adequate protection
under § 363(e), and her participation in
the sale as a bidder was consent under §
363(f)(2). |
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July
16, 2003
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Case
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Court
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Holding
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In
re Bennett Funding Group, Inc.
(DBN Subscription Required) |
2d
Cir. |
In
a suit brought by the bankruptcy trustee
of a Ponzi debtor against various
prepetition professionals employed by the
debtor on the theory that they should have
detected the fraud, the court did not err
in dismissing the trustee's complaint on
standing grounds since the fraud was
perpetrated by the debtor itself.
Where a
bankrupt corporation has joined with a
third party in defrauding its creditors,
the trustee cannot recover against the
third party for the damage to the
creditors. Where a corporation's
management and a third party collaborated
in the fraudulent scheme, the trustee can
sue only if it can establish that there
has been damage to the corporation apart
from the damage to the third-party
creditors. Even if there is damage to the
corporation itself, the trustee cannot
recover if the malfeasor was the
corporation's sole shareholder and
decision maker.
A claim
against a third party for defrauding a
corporation with the cooperation of
management, accrues to creditors, not to
the guilty corporation. Even when
defrauded creditors assigned to the
trustee their claims against another for
aiding and abetting the fraud the trustee
lacked capacity to sue. |
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July
14, 2003
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Case
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Court
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Holding
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In
re Nancy Ybarra
(DBN Subscription Required) |
9th
Cir. BAP |
The
bankruptcy discharge applies to attorney
fees and costs awarded against a debtor
for unsuccessful postpetition state court
litigation of prepetition causes of
action, where the action was commenced
prepetition |
In
re Kari Ann Peck
(DBN Subscription Required) |
9th
Cir. BAP |
The
court erred in denying a discharge
challenge under 11 USC 523(a)(6) to a
creditor who had been slandered by the
debtor. |
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