The court reduced the amount of compensation awarded to counsel for the debtors because the amount of time billed for certain activities – concerning travel, "emergency" motions, and dealing with the debtors' leases – was unreasonable.
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Claims asserting equitable subordination, promissory estoppel, and the imposition of a constructive trust all contain elements (intent, reasonable reliance, fraud) giving rise to factual issues that cannot be determined on summary judgment.
The court granted summary judgment to the debtors, ordering that a wholly unsecured junior lien on the debtors’ residential real estate may be avoided after the debtors complete Chapter 13 plan payments.
The debtors were found liable in state court for violations of state securities laws, with a specific finding of fraud. Even if the judgment, entered post-petition, was not final, it was nevertheless excepted from discharge under § 523(a)(19).
The debt owed to movant was non-dischargeable, as the debtor falsely represented that he had clear title to the truck he sold, the debtor made the false statement to induce the movant to rely on it, the movant justifiably did so and he suffered damages.
Emmett B. Smith v. William H. Grubham (In re Grubham), Ch.7, BK08-41924-TLS, A08-4084-TLS 07/13/2009
A county court default money judgment against the debtor for refusing to convey property to the buyer was found non-dischargeable under § 523(a)(2)(A) on an uncontested summary judgment motion. The buyer could not recover attorney fees, however.
The debtor sold its accounts receivable to another entity pre-petition. Although the debtor filed a preference avoidance action against the buyer, the buyer nevertheless had the exclusive right to collect those receivables post-petition.
A non-dischargeability complaint on an unscheduled debt was not timely filed under § 523(a)(3)(B) because the creditor had actual knowledge of the bankruptcy filing. However, he may have grounds for a fraud action on a separate post-discharge debt.
Movant is not entitled to an administrative expense priority claim for payment of debtor's benefit plan contributions because the payment wasn't an actual and necessary cost of preserving the estate, although the claim can be subrogated under § 509.
Debtor's disclosure statement is denied approval for insufficiencies including: lack of consent for the subordination of the secured creditors's claims, lack of classification of indemnification claims, lack of necessary factual details, etc.