Please ensure Javascript is enabled for purposes of website accessibility


Aug 10, 2020

Forum shopping and litigation conduct doom withdraw motion

A company lost its motion to withdraw a reference from bankruptcy because its litigation conduct suggested it shifted the dispute from forum to forum to stave off foreclosure as long as possible. Background This matter is before the court on Thermasteel Inc.’s motion to withdraw the reference of Tulip Thermasteel LLC v. Thermasteel Inc., Adversary […]

Aug 10, 2020

Attorney has no lien despite litigation efforts

Where an attorney who engaged in prepetition litigation efforts on behalf of the debtor did not provide written notice to the opposing parties prior to the filing of the bankruptcy petition, he has no lien nor could he claim a lien for his postpetition work because he was never retained by the trustee or approved […]

Aug 3, 2020

Defendants waived right to jury trial by their conduct

Even if a jury trial was allowed in the adversary proceeding where a video-trial had been scheduled, the defendants waived their right to such trial by not filing a timely motion to withdraw the reference. Further, despite the defendants’ request for “in person testimony,” the ongoing pandemic was good cause to hold the bench trial […]

Jul 20, 2020

Party not ‘aggrieved’ by order has no standing

A party that was not aggrieved by the bankruptcy court’s order because it lacked a pecuniary interest in its outcome lacked standing to appeal the denial of that order. Background Mar-Bow appeals several orders of the bankruptcy court. The orders from which Mar-Bow seeks relief through its Rule 60(d) motion have little to do with […]

Jul 1, 2020

Order modifying automatic stay is not appealable

Where a bankruptcy court’s order did not resolve the issues involving real property and only provided a “roadmap” of what might occur if the debtor did not follow through with certain conduct, the order was not appealable. The plaintiff’s motion was dismissed as premature. Background Teresa Craig resides in a home in Danville. On July […]

Jun 4, 2020

‘Release’ defense can’t be resolved via motion to dismiss

Where the facts necessary to resolve the defendant’s affirmative defense based on release were not clearly pleaded in the complaint, its motion to dismiss was denied as premature. Background Before the court is a motion to dismiss filed by UPS Supply Chain Solutions Inc. Plaintiff TRU Creditor Litigation Trust filed the complaint initiating this adversary […]

Jun 1, 2020

Federal assistance may prolong bankruptcy filings

With businesses closed, employees furloughed and sales plummeting, there will almost certainly be an increase in bankruptcy filings as a result of the pandemic. But with the recent outpouring of federal financial support, attorneys say the uptick in “COVID-caused” bankruptcy cases won’t be seen for months to come. “At some point, we’re going to see […]

May 27, 2020

Substitute trustee’s foreclosure sale violated automatic stay

Where the substitute trustee’s sale of real property failed to comply with provisions required by the deeds of trust, the foreclosure sale was invalid, so that, when the substitute trustee recorded the deed, she violated the automatic stay. The amount of damages, and possible punitive damages, will be determined at trial. Background On Sept. 16, […]

May 27, 2020

Pier I may delay rent payments because of COVID-19

The Pier I debtors anticipated confirming their plan within 66 days from the Feb. 17, 2020, petition date, but those plans have been impacted by the COVID-19 pandemic, as they have been ordered to close their stores to customers and cannot liquidate their inventory. As a result, they may delay the payment of certain accrued […]

May 27, 2020

IRS’s offset right trumps debtor’s right to receive tax overpayment

The case of first impression held that despite a bankruptcy code section providing that exempt property cannot be used to satisfy a debtor’s prepetition debts, the tax code makes clear the government’s right to set-off a tax overpayment against a taxpayer’s preexisting tax liabilities extends to an overpayment due to a debtor. Background This case […]

May 8, 2020

Disagreement with decision is no basis for appeal

Where the issues on appeal were not controlling questions of law but were disagreements with the bankruptcy court’s application of settled law to facts, interlocutory appeal was denied. Background On Aug. 9, 2019, Wayne Services Legacy Inc., the successor entity to the Toys-Delaware debtors, initiated an adversary proceeding against Donlen Trust, seeking to recover funds […]

Apr 15, 2020

Prejudgment interest reduced because of debtor’s delay

Where a construction company was entitled to recover prejudgment interest on invoices unpaid by its customer but delayed in submitting its first invoice and delayed again in pursuing collection, the interest ran from the date of the last invoice, not the first. Background Before the court is the complaint filed by trustee Bruce E. Robinson […]

Verdicts & Settlements

See All Verdicts & Settlements

Opinion Digests

See All Digests