The bankruptcy court recommended to the district court that it deny the debtor-defendant’s motion to withdraw the reference of the bankruptcy case and adversary proceeding because the motion was unfounded. The issues raised in the adversary proceeding arise under Title 11 and are clearly within the bankruptcy court’s constitutional authority to adjudicate. The court further recommended the imposition of monetary sanctions under Rule 9011 against counsel for the debtor-defendant for repeatedly filing frivolous pleadings that were not well-grounded in fact, warranted by existing law, or based on a good-faith argument.
Opinions
The District of Nebraska offers a database of opinions for the years 1997 to 2011, listed by year and judge. For a more detailed search, enter the keyword or case number in the search box above.
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Rhett R. Sears v. Korley B. Sears (In re Sears), Ch. 11, BK10-40277, A12-4034 (Feb. 21, 2014) 02/21/201402/21/2014
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Richard D. Myers, Chap. 7 Trustee v. Michael L. Blumenthal (In re M & M Mktg., L.L.C. & Premier Fighter, L.L.C.), Ch. 7, BK09-81458, A11-8033 (Feb. 21, 2014) 02/21/201402/21/2014
The bankruptcy court recommended that the district court withdraw the reference of this adversary proceeding because a jury demand had been made. The court further ruled that the defendant’s challenges to the bankruptcy court’s jurisdiction did not need to be resolved in light of the right to a jury trial, which should be conducted by the district court.
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James A. Overcash, Chap. 11 Trustee v. Carol Knisley (In re Big Drive Cattle, L.L.C.), Ch. 11, BK11-42415, A13-4040 (Feb. 20, 2014) 02/20/201402/20/2014
The court entered summary judgment for the bankruptcy trustee, finding pre-petition payments made to the creditor to be preferential transfers. The creditor placed cattle at the debtor’s feedlot to be fed out, and was to be paid after the cattle were sold and an amount deducted by the debtor for feed costs. The sale proceeds were deposited into the debtor's general operating account, and the debtor made payments to the creditor and others out of that account. Because the creditor’s funds were not segregated, he did not have a bailment, nor was a constructive trust warranted.
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James R. Bixenmann & Catherine A. Bixenmann v. Community Home Fin'l Servs. (In re Bixenmann), Ch. 13, BK11-42283, A13-4047 (Feb. 20, 2014) 02/20/201402/20/2014
An unsecured junior lien on the debtor’s residential real estate may be avoided after the debtor completes Chapter 13 plan payments. The case law in the Eighth Circuit, interpreting Nobelman, permits wholly unsecured liens to be stripped off.
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Mark David Wahrman v. Discover Bank (In re Wahrman), Ch. 13, BK11-81573, A13-8011 (Feb. 20, 2014) 02/20/201402/20/2014
An unsecured junior lien on the debtor’s residential real estate may be avoided after the debtor completes Chapter 13 plan payments. The case law in the Eighth Circuit, interpreting Nobelman, permits wholly unsecured liens to be stripped off.
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Craig L. White & Vonnie D. White, Ch. 7, BK12-42639 (Feb. 12, 2014) 02/12/201402/12/2014
The bankruptcy trustee and a judgment creditor proposed a compromise by which the creditor’s proof of claim would be allowed, the creditor would be paid a portion of its claim from the sale of certain assets, and the creditor’s counsel would represent the trustee in litigation to recover certain other assets for the estate. The bankruptcy court denied the motion to approve this agreement because it implicated a variety of legal issues that had not been thoroughly considered or resolved before the settlement was reached. The proposed compromise would adversely affect other creditors and the debtors and was premature.
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Caterpillar Fin'l Servs. Corp. v. Craig & Vonnie White (In re White), Ch. 7, BK12-42639, A13-4010 (Feb. 12, 2014) 02/12/201402/12/2014
The bankruptcy court found that a debtor’s pre-petition disclaimer of an inheritance did not relate back to the date of death to prevent the property from becoming part of the bankruptcy estate. Instead, the disclaimer constituted a transfer and a trial was necessary to determine whether the transfer was made with intent to hinder, delay, or defraud creditors, which would warrant a denial of discharge.
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Nebraska Dept. of Labor v. Joseph A. Platt (In re Platt), Ch. 7, BK13-41177, A13-4056 (Feb. 4, 2014) 02/04/201402/04/2014
The court entered summary judgment for the plaintiff on a § 523(a)(2)(A) cause of action because the plaintiff established a prima facie case in its motion and supporting materials. The debtor’s response did not comply with the local procedural rule for opposing a motion for summary judgment, so the record did not demonstrate a genuine issue of material fact for trial.
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Thomas D. Stalnaker, Trustee v. James G. Jandrain (In re Tri-State Fin'l, LLC), Ch. 7, BK08-83016-TJM, A10-8071-TJM (Jan. 31, 2014) 01/31/201401/31/2014
In Judge Mahoney's final opinion, the court found after a trial on the trustee’s complaint that there were no preferential or fraudulent transfers in the debtor’s payments to its managing member. The debtor was solvent during the two years preceding bankruptcy, and there was no evidence of actual or constructive fraud in the transfers.
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Roosevelt & Ellen Scover v. Cynthia A. Ramsey (In re Ramsey), Ch. 7, BK13-80999-TJM, A13-8051-TLS (Jan. 14, 2014) 01/14/201401/14/2014
A default judgment entered against the debtor in state court on breach of contract, fraudulent inducement, and unjust enrichment causes of action established the elements necessary for the bankruptcy court to find the debt non-dischargeable under 11 U.S.C. § 523(a)(2)(A).