Reported at 428 B.R. 511. The court denied the debtor's motion to use cash collateral because the debtor was unable to provide adequate protection for the creditors' interests without using a related company's assets, which it lacked authority to do.
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The debt to the bank was excepted from discharge because the debtor's actions in selling the bank's collateral without permission was willful and malicious. The conduct did not constitute embezzlement. The bank was entitled to legal fees as well.
Johnson & Mock v. Jody A. Griffeth (In re Griffeth), Ch. 13, BK09-40127-TLS, A09-4033-TLS 10/29/2009
The debtor's motion for summary judgment was denied because the debtor's actions in refusing to turn over check proceeds upon which the plaintiff held an attorney's lien may render the debt non-dischargeable under § 523(a)(2)(A) or § 523(a)(4).
Reported at 416 B.R. 666. Debtor's proposed plan was not confirmable because it was not filed in good faith and it discriminated against his former wife, who held a $400,000 domestic support obligation claim, by delaying reasonable payments to her.
Reported at 417 B.R. 593. The court warned the debtors that executing an payment agreement to delay a trustee's sale but defaulting within weeks and filing bankruptcy "comes very close to not meeting the ‘smell test' with regard to good/bad faith."
The Nebraska HHS Department's post-petition letters to the debtor were efforts to collect a debt and thus were willful violations of the automatic stay. Sovereign immunity did not protect the State from sanctions for the debtor's actual damages.
The plaintiff had a contract with the debtor's companies. The companies did not remit certain proceeds to the plaintiff. The plaintiff was unable to establish that the debt was non-dischargeable as to the debtor under § 523(a)(2), (a)(4), or (a)(6).
Stating that involvement in litigation is simply a cost of doing business, the court denied a vendor's request to refrain from dissolving an injunction protecting it from personal injury litigation until its settlement with the debtor was approved.
The court denied a motion for stay pending appeal of a compromise settlement between debtor and its product liability and excess liability insurers. The movants, who claimed to also be insured under the policies, would not suffer irreparable harm.
The court denied debtor's motion to convert from Chapter 7 to Chapter 13 because he could not fund a plan, had no equity in the property he was trying to save, would face claims litigation, & was unlikely to reorganize. Conversion would have been futile.