New Cases - Week of May 16, 2011

New Cases For the Week of May 16, 2011 - May 21, 2011

May 18, 2011
In Re Dixie Management & Investment (DBN)	Bankr. WD AR	LLC Operating Agreement's provision disassociating member that files bankruptcy unenforceable in contravention of Bankruptcy Code.
In re Matter Of Professional Veterinary Products, Ltd. (DBN)	Bankr. NE	Under § 546(c) , there is no authority for the court to unilaterally extend a reclamation seller's rights to assets other than the actual goods. However, since the debtor caused the creditor to believe that the creditor's rights were protected in the goods' proceeds, the debtor, via judicial estoppel, opened the door to allowing for that possibility.

May 17, 2011
In re Heating Oil Partners, LP (DBN)	2nd Cir.	Although 11 USC 1109(b) states that: "[a] party in interest... may raise and may appear and be heard on any issue in a case under [Chapter 11]," this does not abrogate constitutional standing requirements—a party in interest must still demonstrate that it meets the general requirements of the standing doctrine, including whether it has alleged a personal stake in the outcome of the proceedings and whether it is asserting its own legal rights and remedies

May 16, 2011
Johanna Foods, Inc., v. Toobro Holdings TBF LLC (DBN)	D. NJ	Pending bankruptcy case is proper venue for all "related to" actions. Court is not bound by contrary forum selection clause.
In re: Herrin Clinic Ltd (DBN)	Bankr. CD IL	Travel time ok but time for routine motions slashed where attys were "over-preparing for a battle with no foe."
In re: Tronox Incorporated (DBN)	Bankr SD NY	Under Delaware law, a wholly owned subsidiary is not owed fiduciary duties by its corporate parent under normal circumstances. However, a parent owes fiduciary duties to a subsidiary when that subsidiary is insolvent, and that the creditors of the subsidiary have standing to enforce such duties.
In re: The Heritage Organization, L.L.C. (DBN)	Bankr. ND TX	Where a confirmed plan transferred to a post-confirmation trust causes of action owned by the debtor as of the the effective date of the plan, such transfer did not include section 550 "subsequent transferee" causes of action that arose from post-effective date transfers. Accordingly, the trustee lacked standing to pursue a section 550 claim against a subsequent transferee who received a transfer from the initial transferee 2 years after the effective date.
In re: Louis J. Pearlman (DBN)	Bankr. MD FL	Substantive consolidation is proper even if it destroys the trustee's "wrong payor" avoidance actions.
In re: Old Carco LLC (DBN)	Bankr. SD NY	An amended constructive fraudulent transfer complaint which contained implausible valuations to some of the "assets and benefits" received by the debtor, and continued to ignore other elements of "value" received by the debtor is dismissed with prejudice.
In re: Lehman Brothers Holdings Inc. (DBN)	Bankr. SD NY	A provision in a swap transaction that adversely impacts an in-the-money debtor's right to property upon the filing of a chapter 11 petition may constitute an unenforceable ipso facto clause.