New Cases - Week of September 8, 2008

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September 10, 2008
Case	Court	Holding

In re Schaffer's Salt Recovery, Inc. (DBN Subscription Required)	3rd Cir.	To the extent the "supervisory rule" (requiring imposition of sanctions prior to final judgment) remains viable, it does not apply where sanctions are sought in bankruptcy court under § 1927.
Contractors, Laborers, etc. v. M & S Grading, Inc. (DBN Subscription Required)	8th Cir.	In a case arising out of the bankruptcy of an excavation company that participated in employee-benefit plans wherein the plans and their trustees claimed that debtor's bankruptcy trustee improperly made payments to a bank instead of the plans, various rulings are affirmed where: 1) unpaid contributions owed to the plans were not employee contributions because the contributions were not withheld from employees' paychecks; 2) thus, the unpaid contributions remained corporate assets and did not become assets of the plan; 3) trustee's failure to assert a claim against the bank was justified and the district court did not abuse its discretion in denying plans' motion to commence litigation against the bank; 4) there was no abuse of discretion in not granting an equitable subordination claim; and 5) plans' motion for removal of the bankruptcy trustee was properly denied without a hearing.