Bankruptcy – Motion to Reopen – Prior Dismissal – Rule 60 Motion
In re Mishoe-Hooper Where the debtor’s Chapter 13 case was dismissed for failure to make plan payments and closed prior to being fully administered, the case may not be reopened pursuant to 11 U.S.C. §...
View ArticleBankruptcy – Dischargeability – Real Property – Tort/Negligence – Fraud –...
Fazzari v. Hilbrant Plaintiffs allege that defendant Poag, a real estate broker, failed to disclose: (1) that he and Infinity Partners (the owner of the real estate brokerage) made direct loans to the...
View ArticleBankruptcy – Preference-Period Transfers – Ordinary Course of Business
Sparkman v. Martin Marietta Materials, Inc. (In re Mainline Contracting, Inc.) Despite the notation on the defendant-supplier’s invoices that payment was due 30 days after delivery, during the 90 days...
View ArticleBankruptcy – Plan Confirmation – Debtor Classes – Same Priority – Different...
In re Sea Trail Corp. Even though the claims in Classes 14 and 15 are both unsecured, they may be treated differently since Class 14 consists of the claims of trade creditors who are interested in an...
View ArticleBankruptcy – Real Property – Deed of Trust – Indebtedness – Personal Property...
Tobacco Square LLC v. Putnam County Bank The parties’ first deed of trust does not specifically identify the underlying debt. Since the complaint does not refer to it, the parties’ construction loan...
View ArticleBankruptcy – Avoidance Action – Guaranty – Sister Company – Aircraft
PTM Technologies, Inc. v. Carolina Bank Although the debtor did not receive any direct benefit when it guaranteed a promissory note for its sister company, the loan was used to buy an aircraft that was...
View ArticleBankruptcy – Administrative Expenses Claim – Attorney Fees – Prepetition...
Hensley v. Pace Airlines, Inc. The plaintiff-class members worked for the debtor and were not given advance notice of the debtor’s closure, as required by the Worker Adjustment and Retraining Act (WARN...
View ArticleBankruptcy – Trustee Can’t Assert FDIC’s Claims
In re: Beach First National Bancshares Inc. A bankruptcy trustee for debtor corporation whose principal asset, a bank, went into receivership with the FDIC, may not assert derivative claims against the...
View ArticleBankruptcy — No ‘Contribution’ Without Debtor’s ILSA Payment
Ross v. R.A. North Development Inc. A district court did not err in dismissing a bankruptcy trustee’s adversary action against two real estate development companies and several of their sales and...
View ArticleBankruptcy – Payment to Surety Not ‘Preference’
In re: ESA Environmental Specialists Inc. A $1.375 million transfer by debtor, an environmental engineering firm, to a Miller Act surety within 90 days of debtor’s bankruptcy filing was not an...
View ArticleBankruptcy – Sanctions – Post-Discharge Collection Efforts – Student Loan –...
Educational Credit Management Corp. v. Follett Even though the guarantor’s right of reimbursement is separate from the debt on the student-loan note itself, the record does not include an assignment of...
View ArticleBankruptcy – Civil Practice – Appeals – Stay Motion – Arbitration
Moses v. Cashcall, Inc. : The federal policy favoring arbitration is premised on the enforcement of contractual provisions between assenting parties; however, adversary proceedings such as this one...
View ArticleBankruptcy – Automatic Stay – Construction Project – Subcontractors &...
Branch Banking & Trust Co. v. Hanson Aggregates Southeast, LLC : A subcontractor or supplier’s interest in the property being improved arises at the time the first materials are furnished, not at...
View ArticleBankruptcy – Preferential Transfers – Avoidance – Defenses – Ordinary Course...
Sparkman v. American Residential Services, LLC (In re Anderson Homes, Inc. Before the 90-day preference period, on average, the debtor paid the creditor 48.83 days after a purchase order; during the...
View ArticleBankruptcy – Civil Practice – Standing – Appeals – No Stay – Real Property Sale
In re Meade After the district court affirmed this court’s ruling that Bank of America’s deeds of trust on Lot 978 of Lake Sagamore Subdivision were invalid, the bank appealed to the Fourth Circuit;...
View ArticleBankruptcy – Civil Practice – Standing – Appeals – No Stay – Real Property Sale
In re Meade After the district court affirmed this court’s ruling that Bank of America’s deeds of trust on Lot 978 of Lake Sagamore Subdivision were invalid, the bank appealed to the Fourth Circuit;...
View ArticleBankruptcy – Fraud Claim – Retrieving Grain — Turnover & Accounting –...
Angell v. C.A. Perry & Son, Inc. (In re Tanglewood Farms, Inc. of Elizabeth City) The debtor commingled its own grain with that of the defendant, sold much of the grain -- without informing...
View ArticleBankruptcy – Avoidance – Constructive Fraud Claim – Set Off
Angell v. Montague Farms, Inc. (In re Tanglewood Farms, Inc. of Elizabeth City) When defendant paid the debtor for soybeans, it withheld from the payment the cost of the seeds the debtor had bought...
View ArticleBankruptcy – Avoidance – Farmer & Silo Facility – Lines of Credit – Insolvency
Angell v. Meherrin Agricultural & Chemical Co. (In re Tanglewood Farms, Inc. of Elizabeth City Although the complaint plausibly alleges that the proceeds from the lines of credit provided by the...
View ArticleBankruptcy – Judicial Sale – Higher Bid – Motion to Reconsider
In re Peterkin & Associates, Inc After this court approved the sale of the debtor’s property, a new bidder offered a substantially higher price.
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