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New Cases For the Week of June 4, 2007 - June 8, 2007
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Click here to search prior New Opinion summaries.
June 7, 2007 |
Case |
Court |
Holding |
In re: Hechinger Inv. Co. of Delaware, Inc.
(DBN Subscription Required) |
3rd Cir. |
In bankruptcy proceedings in which the debtor filed a complaint against its creditor to avoid and recover preferential transfers from the creditor, a judgment rejecting defendant's defenses and motion for an adverse inference is vacated in part and remanded where the bankruptcy court erred in holding that the fact that the parties had a credit relationship precluded, as a matter of law, a finding that the debtor intended the transfers to be part of a contemporaneous exchange for new value. Denial of the debtor's request for prejudgment interest is also vacated and remanded where the district court failed to explain its reasons for the denial. |
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June 7, 2007 |
Case |
Court |
Holding |
Fields Station LLC v. Capitol Food Corp.
(DBN Subscription Required) |
1st Cir. |
In a suit attempting to prevent a lessee from reorganizing under Chapter 11 and reopening as a food market on the landlord's property, denial of a motion to dismiss the Chapter 11 petition is affirmed where appellant made no prima facie showing that appellee submitted its chapter 11 petition in bad faith. |
In re Kunz
(DBN Subscription Required) |
10th Cir. |
A bankruptcy debtor's title of "director emeritus" of defendant-company does not make the company a "per se insider" of the debtor, for purposes of a bankruptcy trustee's power to avoid preferential transfers to it under 11 U.S.C. section 547 (b) of the Bankruptcy Code. A person with a relationship designated in section 101(31)(A) of the Bankruptcy Code should be treated as an insider because of the high potential for control inherent in such relationships, and other persons may be found to be insiders in particular cases, based on the specific facts. |
W. Steve Smith, Trustee v. KKM Partnership
(DBN Subscription Required) |
Bankr. S.D. Tx. |
Where a trustee did not turnover to a defendant in an avoidance action the materials delivered by the trustee to his insolvency expert, the trustee was precluded from offering the expert's testimony, and thus was unable to meet his burden of proof to recover an insider preference. |
In re The Brown Schools
(DBN Subscription Required) |
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Exculpation and the business judgment rule are affirmative defenses, and thus that cannot be used to obtain dismissal through a 12(b)(6) motion.
In pleading a fraudulent transfer case, a trustee must specify the particular transfers, transferees and amounts received by the debtor in exchange for the transfers.
It is unclear whether Delaware recognizes a cause of action for aiding and abetting fraudulent transfers. |
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June 5, 2007 |
Case |
Court |
Holding |
In re AdBox
(DBN Subscription Required) |
9thh Cir. |
Bankruptcy trustee was not "opposing party" when he brought preference action that belonged to bankruptcy estate and not to debtor, but counterclaim alleged causes of action that could have been brought against debtor prior to bankruptcy filing. |
USA vs. Maturin
(DBN Subscription Required) |
5th Cir. |
A restitution order, imposed following defendant's conviction for concealing assets in a bankruptcy proceeding, is vacated where: 1) the district court erred when it ordered that defendant pay restitution for losses caused by conduct other than the conduct for which he was convicted; 2) the error was plain; and 3) the error affected defendant's substantial rights and the fairness, integrity, or public reputation of judicial proceedings |
Rhonda J. Lewallen v. Green Tree Servicing
(DBN Subscription Required) |
8th Cir. |
A creditor's request to compel arbitration was properly denied where: 1) the creditor waived its right to arbitrate by waiting eleven months to assert the right and acted inconsistently with its right to arbitrate by engaging in judicial proceedings and serving discovery requests; and 2) the debtor was prejudiced by the late assertion of the right. |
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June 4, 2007 |
Case |
Court |
Holding |
In re Glance
(DBN Subscription Required) |
6th Cir. |
A security interest in a debtor's property is a "noncontingent, liquidated, secured debt" under section 109(e) of the Bankruptcy Code. |
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