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New Cases For the Week of June 29, 2009 - July 3, 2009
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Click here to search prior New Opinion summaries.
| June 30, 2009 |
Case |
Court |
Holding |
In re Tate
(DBN Subscription Required) |
5th Cir. |
The dismissal of Debtors' bankruptcy petition for abuse is reversed, where Debtors should have been allowed to deduct a transportation ownership deduction under the plain language of 11 U.S.C. section 707(b), even though they had no loan or lease payment on their vehicle. |
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| June 30, 2009 |
Case |
Court |
Holding |
In re Enron Creditors Recovery Corp.
(DBN Subscription Required) |
Bankr. SD NY |
Where commercial paper is
redeemed by the issuer prior to maturity, thereby extinguishing the commercial paper, and when
the payment made for that commercial paper is equal to the principal plus the accrued interest to
the date of payment, the payment made by the issuer is for the purpose of satisfying the
underlying debt. Because the payment would be for the retirement of
the underlying debt, it would not be for a sale of the commercial paper to the issuer and the
payment would not be a settlement payment. Such a transfer
would not be protected by the 11 U.S.C. § 546(e) safe harbor provided for settlement payments.
Moreover, because the commercial paper was redeemed prior to its maturity date, and not as it
customarily is at maturity, it would not be protected by the 11 U.S.C. § 547(c)(2) ordinary course
of business defense. |
Braunstein v. McCabe
(DBN Subscription Required) |
1st Cir. |
In an action related to bankruptcy proceedings, district court judgment is affirmed where: 1) the court properly denied plaintiff's jury trial demand in the turnover action as no Seventh Amendment right to trial by jury attaches to the statutory turnover action authorized by 11 U.S.C. sec. 542; 2) the court properly granted attorney Ziady's motion to dismiss the defendant's fourth-party complaint for negligent misrepresentation as attorney Ziady owed no legal duty to defendant; and 3) the court did not abuse its discretion in denying defendant's motion to amend the fourth-party complaint, as the record shows that the defendant's proposed amendment would have been futile. District court judgment is reversed where the court erred in its turnover order for the insurance proceeds as defendant's expenditures were not made in the ordinary course of business. |
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| June 29, 2009 |
Case |
Court |
Holding |
In re On-Site Sourcing, Inc.
(DBN Subscription Required) |
Bankr. ED VA |
Where a creditors committee's objection to a section 363 sale of substantially all of a debtor's assets was proposed to be resolved by payment of an amount to a general unsecured creditors trust, the trust framework was disapproved as an invalid sub rosa plan. The trust provision would have bypassed higher-priority administrative claims, potentially leaving such claims unpaid. This problem implicated the differences between section 363 sales and sales through a plan, and warranted denial of approval to pay the trust. |
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