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New Cases For the Week of December 11, 2000 - December
15, 2000
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to you by BKINFORMATION.COM - The Source
for Business Bankruptcy Information on the Internet AND BKCLAIMS
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December 14,
2000
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Case
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Court
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Holding
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| In re Cedar Shore Resort |
8th Cir. |
In
Chapter 11, good faith implies an honest intent and genuine desire on
the part of the petitioner to use the statutory process to effect a plan
of reorganization and not merely as a device to serve some sinister or
unworthy purpose.
A financially healthy debtor which files Chapter 11 to
attempt to dispose of a minority shareholder lawsuit has not filed its
petition in good faith, and the bankruptcy court did not err in
dismissing the petition. |
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December 13,
2000
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Case
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Court
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Holding
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| In re Slyman |
9th Cir. |
A
homeowners' association must prove all five elements, including
justifiable reliance, when seeking a declare of nondischargeability
under 11 USC 523(a)(2)(A). |
| In re Gregory |
10th Cir. |
The
bankruptcy court did not err in finding that a debtor/ security
officer's practice weapon was not exempt as a tool of the trade under
Wyoming law. |
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December 12,
2000
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Case
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Court
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Holding
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| In re Bassett |
9th Cir. BAP |
There
is no private right of action for violation of the discharge injunction,
although a debtor aggrieved by such a violation can redress the wrong
through a contempt action. |
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December 11,
2000
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Case
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Court
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Holding
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| In re Newpower |
6th Cir. |
Funds
that a debtor embezzled prepetition are not property of the
estate. However, where a debtor uses embezzled funds to purchase
property from a third party good faith transferee, such purchased
property is property of the bankruptcy estate, subject to a possible
constructive trust in favor of the owner of the embezzled funds.
The Court's prior decision in In re Omegas holds that a person
claiming a constructive trust in a bankruptcy estate must have obtained
a prepetition declaration of such trust under State law. Since the
constructive trust claimants here had not obtained such a a declaration
before the bankruptcy filing, they were mere proportional unsecured
creditors with respect to the property which the debtor had purchased
using the embezzled funds. |
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