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Trustee ordered to disgorge fees
Where a Chapter 7 panel trustee received a share of commissions from a realtor to whom he referred business, and that arrangement was not disclosed to the court, the trustee must disgorge his fees in this case. Background This matter was before the court for a hearing on the court’s order to show cause why […]
Claims narrowed in dispute between homeowner and contractor
Where a homeowner alleged a contractor violated the Virginia Consumer Protection Act and that resulting damages are nondischargeable, but she failed to plead facts supporting her claims, they were dismissed. And where the contractor counterclaimed against the homeowner for breach of contract, but the alleged breaches did not correspond with a contractual duty in either […]
Debtor fails to show signature was forged
Where a bank filed claims against the debtor based on personal guarantees signed by the debtor and his late wife, and the debtor claimed his signature was forged on the documents, his objections were overruled. He failed to rebut the presumption that the notarized documents are valid and that the notaries performed their duties properly. […]
No discharge for ‘willful and malicious injury’
Where a jury previously found that debtors discriminated against a former employee on the basis of sex, gender and pregnancy, and retaliated against her and wrongfully terminated her employment in violation of public policy, the resulting judgment was for conduct that was inherently willful and thus non-dischargeable. Background Trina Bengtsson brings this action asserting that […]
Fraud debt exempt from discharge
Where the debtor obtained $120,000 from the plaintiff by telling her that he was a licensed home improvement contractor, when he was not, he must disgorge those funds. Because those funds were obtained through fraud, that debt is not dischargeable. Background Prior to this bankruptcy proceeding, a dispute arose between the Hanan Khalil and Mohamed […]
Petition was filed in bad faith
Where the debtor inflated his expenses to hide disposable income, and the record showed a pattern of making unsubstantiated expense claims, the court concluded that he filed his three Chapter 13 plans in an effort to unreasonably delay and thwart his creditors. As a result, his latest plan was dismissed. Background Patrick Roch filed this […]
Automatic stay extended to nondebtor lawyer
Where the nondebtor’s finances were intertwined with the those of the debtors, but she could not file for bankruptcy protection because it could put her law license, and the only source of income for the debtor, at risk, there was good cause to extend the automatic stay to her. Background Cornus Montessori LLC owned and […]
Bad faith conduct results in two-year refiling bar
Where the court previously dismissed with prejudice the bankruptcy filing of the debtor’s alter-ego, this case was the ninth filed by the alter-ego since 2010 and was filed during a prior bar to refiling, and neither the debtor nor the alter ego defended their conduct, both the debtor and the alter ego were barred from […]
IRS scuttles proposed settlement
Where a proposed settlement would pay an unsecured creditor ahead of the Internal Revenue Service, which was a senior creditor, it violated the Bankruptcy Code’s priority schemes and was denied. Background In August of 2017, River House Enterprises LC obtained an arbitration award against the debtor, Tovan Construction Inc., and had that award confirmed in […]
Husband not liable for forged personal guarantees
Where the evidence demonstrated the debtor’s wife likely forged his signatures on personal guarantees to obtain loans, the bank failed to carry its burden to prove the guarantees were genuine copies of original documents signed by the debtor. With respect to one guarantee, however, the debtor could not claim it was a forgery because he […]
Bankruptcy judge disallows $2.3M in bank claims
Based on evidence that four loan guarantees were the product of forgery by the debtor’s wife, a bankruptcy judge has disallowed more than $2.3 million in claims by a bank that lent money to a now-defunct real estate investment firm. The decision by U.S. Bankruptcy Judge Klinette H. Kindred describes an embezzlement scheme that came […]
Debtor induced to buy business based on inaccurate data
Where the debtor was induced to buy a bagel business based upon inaccurate information provided by the seller, his objection to the seller’s claim for damages was sustained. But because the debtor received more value from the business than his investment he was awarded no damages. Background On April 4, 2014, debtors Khader and Nanette […]
Verdicts & Settlements
- Jury reaches defense verdict in $4M med mal action
- Dental hygienist tripped, fractured right wrist, foot — $190,000 settlement
- Couple contracted Hepatitis A after dining at restaurant — $5.5M settlement
- Elderly man suffers hip fracture after attack by neighbor’s dog — $350,000 settlement
- Motorcyclist injured when vehicle abruptly changed lanes — $300,000 verdict
- Passenger ejected from car in high-speed chase crash — $685,000 settlement
- Defense verdict reached in fraud suit
- 8-year-old killed in crash involving tractor-trailer — $1,100,000 settlement
- Plaintiff conceived child after vasectomy — $250,000 settlement
- Delay in diagnosis of ectopic pregnancy led to surgery — $283,432.18 settlement
- Golfer stepped in sinkhole, fractured ankle — $442,000 verdict
- Jury sides with woman injured in rear-end collision — $300,000 verdict
viewpoint
- The promise and peril of artificial intelligence in patent law
- Keys to becoming an unfrazzled lawyer
- Confused about federal COVID-19 emergencies ending? You’re not alone
- Generative AI in law: New survey of lawyer perspectives and plans
- Four misconceptions about appeals
- Font choice exposes fabricated document
- USPTO launches first-time filer expedited exam pilot program
- In times of crisis, the ‘tug of war’ is over
- The ever-evolving Fourth Circuit
- Federal protections for pregnant, nursing employees coming
- It’s time for employers to embrace the ‘Big Quit’ and adapt
- Tell the whole truth? I’ll do better than that
Polls
Are you or your law firm cutting back on holiday gifts to clients, colleagues or associates?
- Yes, times are tough (78%, 29 Votes)
- No, it's business as usual (22%, 8 Votes)
Total Voters: 37
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