New Cases - Week of February 14, 2005

New Cases For the Week of February 14, 2005 - February 18 2005

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February 18, 2005
Case	Court	Holding

In re Calumet Farm, Inc. (DBN Subscription Required)	6th Cir.	A bank which overpays a wire transfer ordered by a customer is entitled to recover the overpayment (or the amount that the bank was required to pay its customer to settle claims arising from the overpayment) from the transferee/creditor if the creditor has notice of the mistake prior to crediting the overpayment to the customer's account.

February 17, 2005
Case	Court	Holding

Mt. McKinley Insurance Company v. Corning Incorporated
(DBN Subscription Required)

2nd Cir.

A district court's decision not to remand on mandatory abstention grounds is subject to appeal.

Mandatory abstention applies to removed actions (i.e., the removal of an action does not extinguish the "pending State action" required for abstention).

Although a declaratory judgment insurance coverage action in an asbestos bankruptcy case can be a core action where the policies are wholly owned by the debtor and are the only funding sources available for payment of asbestos claims, core jurisdiction does not exist where the policies are not wholly owned by the debtor and where other sources for payment of asbestos claims also exist.

In re Slater Health Center, Inc.
(DBN Subscription Required)

1st Cir.

Medicare's withholding of funds due to a Chapter 11 debtor on account of prior overpayment to the debtor was a recoupment, and not a setoff.

February 16, 2005
Case	Court	Holding

In re NHI, Inc. (DBN Subscription Required)	Bankr. DE	Where there were no allegations that the lender which recommended turnaround managers to a debtor directed and controlled the actions of the managers , the managers were not entitled to dismissal of the debtor's fiduciary duty lawsuit based upon releases previously granted by the debtor to the lender "and its agents."

February 14, 2005
Case	Court	Holding

In re Aken (DBN Subscription Required)	6th Cir. BAP	The bankruptcy court did not err in finding that: (i) obligations bore the required indicia of "support" under state law to render them non-dischargeable under federal bankruptcy law; and (ii) extrinsic evidence may be admitted to explain or vary the terms of a settlement agreement incorporated into a divorce judgment.
In re International Management Assoc. (DBN Subscription Required)	11th Cir.	An unquantifiable "benefit" that bears no necessary correspondence to the value of the property transferred or received cannot form the basis for recovery under section 550(a)(1) from a person "for whose benefit" a transfer was made.