New Cases - Week of July 19, 2010

New Cases For the Week of July 19, 2010 - July 23, 2010

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July 23, 2010
Case	Court	Holding

In re Catholic Diocese Of Wilmington, Inc.
(DBN)

Bankr. DE

Tracing funds requires explicit proof of the manner in which all deposits and withdrawals were made. Arguments about what "must have happened" are not persuasive. Testimony qualified with phrases such as "unlikely," "my guess," "don't know for certainty," and "don't know whether" is of no probative value.

July 22, 2010
Case	Court	Holding

In re All American Semiconductor, Inc. (DBN)	Bankr. SD FL	Where a confirmed plan included a provision vesting the bankruptcy court with exclusive jurisdiction and venue over post-confirmation litigation, the failure of creditors to contest that provision resulted in waiver of the arbitration provisions in the contracts between the creditors and the debtor.

July 20, 2010
Case	Court	Holding

In re Motors Liquidation Company
(DBN)

Bankr. SD NY

A bankruptcy court has the power, under section 328, to determine the date from which an official committee professional's services may appropriately be compensable, just as the bankruptcy court can fix other aspects of the terms and conditions of the professional's employment. The effective date for the start of compensable services can be a date that precedes the official formation of the committee, so long as such a date is "reasonable."

In re Mwangi
(DBN)

9th Cir. BAP

A bank which had a national policy of freezing Ch. 7 debtors' bank accounts pending disbursement directions from trustees violated the automatic stay when it: (i) refused to deliver to the debtors funds in which an exemption was claimed (but for which the trustee's 30-day objection period had not expired) and (ii) retained such funds on deposit while awaiting directions form the trustee.

When the bank took no action after receiving no instructions from the trustee as to how to disburse the account funds, which were indisputably estate property, the bank “exercised control” over those funds, and it violated the automatic stay.

July 19, 2010
Case	Court	Holding

In re American Consolidated Transportation Companies, Inc. (DBN)	Bankr. ND IL	A bank's requirement that a debtor in default hire a restructuring consultant did not create a fiduciary duty between the bank and the debtor.