FindLaw Opinion Summaries - Bankruptcy Law

O'Rourke v. US

Mon, 23 Nov 2009 17:00:05 PDT

(U.S. 2d Cir., Bankruptcy Law, Evidence, Per Curiam, Tax Law) In an appeal from a bankruptcy court's order denying debtors' objection to a claim by the IRS, the order is affirmed where: 1) the bankruptcy court's finding that a notice of deficiency was mailed to debtors, based on a certified mail log stamped by the Postal Service and a partial copy of the notice, was not clearly erroneous; 2) debtors identified no affirmative misconduct on the part of the IRS warranting an estoppel; and 3) their argument that the certified mail log was inadmissible was waived.

Severo v. Comm'r of Int'l Rev.

Fri, 20 Nov 2009 20:00:01 PDT

(U.S. 9th Cir., Administrative Law, Bankruptcy Law, Civil Procedure, Tax Law) In taxpayers' appeal of a tax court decision granting summary judgment for the IRS and permitting it to proceed with its collection action relating to petitioners' 1990 tax liability, the order is affirmed where the statute of limitations regarding collection was tolled during the pendency of petitioners' bankruptcy proceedings.

Boyer v. Crown Stock Distrib., Inc.

Wed, 18 Nov 2009 20:00:02 PDT

(U.S. 7th Cir., Bankruptcy Law, Civil Procedure, Corp. Governance, Corporation & Enterprise Law, Government Law, M&A) In Chapter 7 bankruptcy proceedings in which the trustee filed an adversary action against the defendants claiming fraudulent conveyance under the section 4(a)(2) of the Uniform Fraudulent Transfer Act, judgment in favor of the trustee is affirmed in part and reversed in part where: 1) bankruptcy court did not commit clear error in finding that the statutory condition for a fraudulent conveyance was satisfied; and 2) district court's ruling with respect to the dividend is reversed as the trustee is entitled to the dividend because it was an integral part of the leveraged buy-out.

In re: Nowak

Fri, 13 Nov 2009 20:00:02 PDT

(U.S. 6th Cir., Bankruptcy Law, Civil Procedure, Judgment Enforcement) In Chapter 7 bankruptcy proceedings, the Bankruptcy Appellate Panel's (BAP) denial of plaintiff-creditor's motion to allow an informal proof of claim based on its prior filings as a putative secured creditor is affirmed as the BAP did not abuse its discretion in finding that: 1) plaintiff had ample notice of the likelihood that it would lose its status as a secured creditor, necessitating the filing of a proof of claim; 2) plaintiff's unexplained delay weighed against allowing plaintiff's informal proof of claim; and 3) the large dilution in the distribution to other creditors in this case was an appropriate consideration weighing against allowing plaintiff's claim.

In re: Bradley

Thu, 12 Nov 2009 20:00:02 PDT

(U.S. 5th Cir., Bankruptcy Law, Ethics & Professional Responsibility, Sanctions) In bankruptcy trustee's appeal from a ruling of the bankruptcy court, affirmed by the district court, holding the trustee's predecessor in contempt of court and imposing monetary sanctions, the order is affirmed where: 1) the remedial civil contempt power extends to defiance of a bankruptcy court injunction whose terms are known, but which has not yet been formalized as required by procedural rules; and 2) the lack of agreement between the opposing parties briefing the motion for injunction did not render the resulting ruling unclear.

In re: Madera

Thu, 12 Nov 2009 20:00:02 PDT

(U.S. 3d Cir., Administrative Law, Bankruptcy Law, Civil Procedure, Government Law, Property Law & Real Estate) In debtors' bankruptcy proceedings for defaulting on their loan, ruling upholding the bankruptcy court's grant of summary judgment to the creditors and its denial of debtors' motion to amend is affirmed where: 1) the Rooker-Feldman doctrine precluded the bankruptcy court's jurisdiction over debtors' rescission claim because that claim was inextricably intertwined with a Court of Common Pleas' foreclosure judgment; 2) there was an adequate basis for summary judgment on the Truth in Lending Act damages claim, specifically, that debtors failed to create a genuine issue of material fact as to whether they had prior title insurance in connection with the loan; and 3) the bankruptcy court did not abuse its discretion in denying debtor's motion to amend as it was untimely.

In re: Smith

Fri, 6 Nov 2009 20:00:02 PDT

(U.S. 1st Cir., Bankruptcy Law, Contracts, Debt Collection, Family Law, Government Law) Order of the Bankruptcy Appellate Panel reversing an order of the Bankruptcy Court is affirmed as a late alimony payment penalty was not a domestic support obligation, and as such, the ex-wife's claim was a general unsecured claim not entitled to priority status and consequently dischargeable.

In re: Bender

Thu, 5 Nov 2009 20:00:02 PDT

(U.S. 9th Cir., Bankruptcy Law, Civil Procedure) In a bankruptcy adversary action seeking avoidance of the transfer of a parcel of real property from the debtor to defendant, defendant's appeal from the Bankruptcy Appellate Panel's (BAP) affirmance of the bankruptcy court's ruling that the doctrine of equitable tolling applied to the trustee's filing of the proceeding is dismissed where the BAP's order was nonfinal.

Ogle v. Fidelity & Deposit Co. of Md.

Thu, 5 Nov 2009 20:00:02 PDT

(U.S. 2d Cir., Attorney's Fees, Bankruptcy Law) In an appeal from the district court's affirmance of the bankruptcy court's order requiring a liquidating trust to pay post-petition attorneys' fees on a claim that stemmed from a pre-petition indemnity agreement, the judgment is affirmed where such claims are categorically allowable.

In re: Paige

Tue, 3 Nov 2009 20:00:02 PDT

(U.S. 10th Cir., Bankruptcy Law) In an appeal from the bankruptcy court's decision confirming appellees' joint bankruptcy reorganization plan and denying appellants' competing plan, dismissal of the appeal as moot is reversed where: 1) the competing plan could theoretically be confirmed without requiring disgorgement of payments made to third-party creditors; and 2) reversal of the existing plan would not require the undoing of complex transactions.

In the Matter of: Proeducation Int'l. Inc.

Fri, 30 Oct 2009 21:00:02 PDT

(U.S. 5th Cir., Bankruptcy Law, Ethics & Disciplinary Code, Ethics & Professional Responsibility, Sanctions) In an appeal from the district court's affirmance of the bankruptcy court's order disqualifying counsel for a creditor, the order is reversed where: 1) the bankruptcy court should have considered counsel's evidence of his lack of involvement with the debtor while at his prior law firm in making its decision; and 2) counsel presented sufficient evidence to demonstrate that he did not operate under a conflict of interest when he undertook the representation of creditor.

In re: Riebesell

Wed, 28 Oct 2009 20:00:02 PDT

(U.S. 10th Cir., Bankruptcy Law, Ethics & Disciplinary Code, Ethics & Professional Responsibility) In a bankruptcy adversary proceeding seeking to prevent the discharge of a debt owed to plaintiff by his attorney (the debtor), judgment for plaintiff is affirmed where: 1) the parties had an attorney-client relationship during the relevant period under Colorado law; 2) the loans to defendant were not "standard commercial transactions" exempt from the requirements of Colo. R. Prof'l Conduct 1.8(a); and 3) the bankruptcy court's finding that defendant had the requisite intent to deceive plaintiff was not clearly erroneous.

In the Matter of: Greater Southeast Cmty. Hosp. Found., Inc.

Tue, 27 Oct 2009 20:00:02 PDT

(U.S. D.C. Cir., Bankruptcy Law, Civil Procedure, Ethics & Professional Responsibility) In an appeal from a district court order striking plaintiff's attorney as counsel of record and terminating his status as an appellant from a bankruptcy court order, the order is affirmed where: 1) counsel was not a licensed attorney; and 2) he lacked prudential standing to appeal from the bankruptcy court's order.

In re: Reale

Thu, 15 Oct 2009 20:00:04 PDT

(U.S. 1st Cir., Bankruptcy Law) In bankruptcy trustee's action to recover money paid to a creditor, bankruptcy court's award of $20,000 preference recovery judgment against National Lumber is affirmed where: 1) a conclusion that the debtor exercised sufficient control over the funds at issue to demonstrate that they were an interest of the debtor in property is supported by the record; and 2) successor judge had no obligation to recall witnesses or to order a new trial.

In re: Simply Media, Inc.

Wed, 14 Oct 2009 20:00:04 PDT

(U.S. 1st Cir., Bankruptcy Law, Civil Procedure) In a case arising from bankruptcy proceedings involving fraudulent transfers, given the deficiencies of the present briefing, the appeal is dismissed and defendant's counsel ordered to show cause by written response as to why the court should not order payment by him personally of attorney's fees, double costs or both for a brief that renders the appeal frivolous.