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New Cases For the Week of March 8, 2004 -
March 12, 2004
Brought to you by BKINFORMATION.COM
- The Source for Business Bankruptcy Information on the Internet
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March
11, 2004
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Case
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Court
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Holding
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In
re Consolidated Industries
Corp.
(DBN Subscription Required) |
7th
Cir. |
An
adversary proceeding is not
the proper vehicle to present
a contempt claim, as civil
contempt is a method of
enforcing a court order, not
an independent cause of
action. The proper vehicle to
enforce a court order is a
motion in the original case.
When
the estate is protected by a
court order, only the trustee
(not a creditor) may move to
enforce the order unless a
creditor proves that the
trustee has unjustifiably
failed to take such action. |
In
re Brzakala
(DBN Subscription Required) |
Bankr.
N. D. Ill. |
Section
523(a)(2) protects a creditor
deceived into forbearing
collection efforts.. |
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March
10, 2004
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Case
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Court
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Holding
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In
re Gaylord Grain, L.L.C.
(DBN Subscription Required) |
8th
Cir. BAP |
Because
the result of a bank's appeal
was "obvious" (that
State law required perfection
of a lien on a motor vehicle
through the MSO rather than a
UCC filing even if the vehicle
was equipment), the appeal was
frivolous warranting sanctions
under Rule 8020. |
In
re Bankruptcy Petition
Preparers
(DBN Subscription Required) |
9th
Cir. BAP |
The
bankruptcy court may validly
order that bankruptcy petition
preparers, all of whom are
subject to § 110, must also
comply with state
certification requirements
established to regulate the
unauthorized practice of law. |
In
re Cohen
(DBN Subscription Required) |
9th
Cir. BAP |
Chapter
13 debtors have standing to
exercise trustee avoiding
powers for the benefit of the
estate. |
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March
9, 2004
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Case
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Court
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Holding
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Christopher
Village, L.P. v. United States
(DBN Subscription Required) |
Crt.
Fed. Cl. |
A
federal district court lacks
jurisdiction to issue a
declaratory judgment as to the
government's liability for
breach of contract solely in
order to create a
"predicate" for suit
to recover damages in the
Court of Federal Claims. |
In
re Bennett Funding Group, Inc.
(DBN Subscription Required) |
Bankr.
N.D, N.Y. |
Congress
in amending Code § 330,
generally precluded bankruptcy
courts from applying hindsight
when considering a
professional’s fee
application at a point in time
far removed from the actual
performance of the services.
Only in the limited
circumstances outlined in Code
§ 328(a) may the bankruptcy
court apply hindsight, and
then only when the basis for
applying that hindsight could
not have been anticipated at
the time of the professional’s
appointment.
Where
counsel instructed a financial
advisor to perform and
complete certain work that was
later of no value to the
estate because of the
dismissal of the causes of
action to which the work
related, the advisor's fees
should not be decreased.
The possible dismissal of the
causes of action was foreseeable,
as such contingency exists
with any litigation. |
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March
8, 2004
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Case
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Court
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Holding
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In
re National Warranty Insurance
Risk Retention Group
(DBN Subscription Required) |
8th
Cir. BAP |
For
purposes of 11 USC 304, the
domicile of a corporation is
where is was incorporated.
The
bankruptcy court did not err
in granting ancillary relief
to a Cayman Island liquidation
base upon findings that the
proceeding according fair
treatment to general unsecured
creditors and did not prefer
local creditors. |
In
re Mobile Tool International,
Inc.
(DBN Subscription Required) |
Bankr.
DE |
When
a debtor redeems shares of its
stock prepetition through
issuance of a promissory note,
the claim for payments due
under the note cannot be
subordinated postpetition
under 11 USC 510(b). |
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