New Cases For the Week of June 17, 2024 - June 21, 2024
2023 case summaries can be accessed by clicking here
June 21 2024
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In re: JJW Metal Corp. | Bankr. PR |
The debtor operates a ferrous material collection and recycling center. Pre-petition, the state commenced litigation for revocation of the debtor's permit after an inspection revealed significant dangers. Post-petition, the state court stayed the litigation but on appeal the state appellate court ruled in favor of the state, holding that the automatic stay did not apply because of the police powers exception. The litigation recommenced. The court rejects the debtor's stay violation proceeding in the bankruptcy court:
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June 20, 2024
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In re: Maison Royale, LLC | Bankr. ED LA | Pre-petition, the debtor's managing member received certain property from the debtor in connection with the debtor's liquidating sale of assets. In state court litigation between the managing member and another member, the court ordered the managing member to pay into the court registry $775,246, representing property he received from the asset sales. When the debtor filed Ch. 7 bankruptcy, the trustee ended up with the registry funds. The managing member filed a timely proof of claim which included the $775,246 as a loan. The trustee, joined by the other member, objected to the claim, arguing that it was an equity contribution. The court disagrees:
The court also finds that due to the debtor's tacit acknowledgment of the claim and a court stay, the claim is not barred by a three-year limitations period.
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In re: Virella | Bankr. NJ | As a result of the SCOTUS decision in Tyler v. Hennepin County, Minnesota, holding that retention of surplus equity by a property tax agency following a foreclosure sale is a "taking" under the Constitution, the court grants the debtor's motion seeking reconsideration, reimposition of the stay and an injunction:
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In re: Groves | 9th Cir. | The bankruptcy court erred by authorizing a free and clear sale which included a 1/2 interest owned by a non-debtor:
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June 18, 2024
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In re: Archer | Bankr. ND TX | In an adversary proceeding where a Ch. 7 trustee seeks a marshaling order against the IRS to force the agency to liquidate exempt encumbered property so that non-exempt property can be used to pay creditors, the court denies the IRS's motion for summary judgment:
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In re: Murphy | Bankr. ED NY | The court awards attorney's fees for a eviction stay violation but, after considering the debtor's conduct as well, declines to award actual damages or punitive damages. The court also finds that the violating creditors will be entitled to a credit against the sanctions for the time period the debtors remained in possession of the property:
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In re: May | Bankr. ED PA | In an adversary proceeding by a past-due rent creditor seeking shotgun relief, the court grants the debtor's motion for summary judgment and denies the creditor's summary judgment motion:
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In re: Mannlein | Bankr. IA | In a section 522(f) lien avoidance proceeding, the court dives into 10-year old divorce pleadings to find that the judgment liens are not avoidable because they reflect domestic support obligation.
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June 17, 2024
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Office of the United States Trustee v. John Q Hammons Fall 2006, LLC | SCOTUS | The court rules that the remedy for the non-uniform UST fee system which was held unconstitutional in Siegel v. Fitzgerald is "prospective parity", not refunds of the illegal fees.
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In re: Ruiz | Bankr. CD CA | As part of a settlement between a Ch. 7 estate and an individual debtor, the debtor's putative interest in several rental properties was abandoned by the trustee. Later, the debtor commenced an avoidance adversary proceeding against a mortgage creditor with liens against the rental properties. The court dismisses the proceeding for lack of jurisdiction:
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In re: Fairfield Sentry Limited | Bankr. SD NY | The court denies a defendant's motion to dismiss avoidance litigation for lack of personal jurisdiction in the Madoff Ponzi bankruptcy:
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