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Case dismissed with prejudice as sanction
Where the debtor had the benefit of the automatic stay for five years in his previous case but did not pay the mortgage on his property for four of those years, despite his representation to the court in his confirmed plan that he would do so, his second case was dismissed with prejudice for a […]
Debtor’s fraud judgment nondischargeable
The Bankruptcy Court for the Eastern District of Virginia has refused a chapter 13 debtor’s request to discharge a debt of more than $165,000 arising from a state court’s judgment for fraud, conversion and breach of fiduciary duties. When the defendant filed bankruptcy after losing in the state court, the plaintiff filed an adversary action […]
Debtor can’t explain loss of millions of dollars
Where the U.S. Trustee showed there had been an unexplained loss of millions of dollars of assets to meet the debtor’s liabilities, and the debtor failed to provide a satisfactory explanation for the loss of the funds, the trustee prevailed on this claim. Background Bin Hao is an individual residing in Fairfax County. Through Qidian […]
Petition date determines eligibility for subchapter V
Where the debtors were eligible for proceeding under subchapter V of Chapter 11 at the time they filed their petition, the court could not consider eligibility based on events that occur postpetition (such as the later filing of a bankruptcy case by an affiliate of a debtor). Background On Feb. 7, 2023, Tommy and Anne […]
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 […]
Proofs of claim survive challenge by debtor
Where a debt collection company filed two proofs of claim based upon credit card debt owed by the debtor, the debtor admitted she owed the debt to the credit card company and there was proof the debts were assigned, the debtor’s argument that she had no credit relationship with the assignee was insufficient to overcome […]
Rural pharmacy denied funds required for survival
Although the debtor is owed more than a million dollars by a pharmacy services administrative organization, which that organization refuses to transfer because of an alleged overpayment, and the debtor may have to go out of business without the funds, which would cause irreparable harm to the surrounding community, the debtor’s motion for injunctive relief […]
Debtors fail to show bank violated discharge injunction
Where debtors asserted that a bank violated the discharge injunction, but their arguments had already been rejected by courts, misapprehended the law or stated claims that were implausible, the bank was granted judgment on the pleadings. Background This case involves pro se debtors, James Andrew Hegedus and Virginia Ellen Hegedus, who have engaged in litigation […]
Debtors’ potential claim arose after petition date
Where one of the debtors believes that he might be entitled to compensation under the recently-passed Camp Lejeune Justice Act of 2022, his motion to reopen the bankruptcy in order to disclose the claim was denied. The cause of action did not come into existence until Aug. 10, 2022, the date the statute was passed, […]
Debt collectors must pay $25K after violating injunction
Where debt collectors sent debtors a payoff letter and offered a discounted payment for the judgment debt after the debtors filed for bankruptcy protection, the debt collectors violated the discharge injunction. They must pay $25,000 the debtors incurred in attorney’s fees remedying the violation. Background Morton Craig Skaggs and Laurie Lynn Skaggs are the bankruptcy […]
Bankruptcy court abstains from suit against debtor
Where the debtor sold her house, but the mortgage holder received no proceeds, and it then sued the debtor, purchasers and new mortgage holder in circuit court, the bankruptcy court will abstain from the suit. The circuit court can adjudicate the debtor’s affirmative defense of discharge. Background Dee Arnolds filed a Chapter 7 petition with […]
Liquidating trustee must pay quarterly fees
Where the confirmed plan made the liquidating trustee the party responsible for the quarterly fee payments in the stead of the debtors, directed the liquidating trustee to make the payments and the plan received creditor approval, the liquidating trustee was required to pay the quarterly fees to the US trustee. Background Richard Arrowsmith, in his […]
Verdicts & Settlements
- Plaintiff injured in crash with oncoming vehicle — $235,000 settlement
- Driver killed in rear-end collision with tractor-trailer — $1.5M settlement
- Man died from pancreatic cancer after delayed response — $1.8M settlement
- Worker fell off roof, rendering him a paraplegic — $1.25M settlement
- Driver sustained permanent hearing loss after traffic collision — $240,000 settlement
- Plaintiff suffered concussion in rear-end collision — $81,000 verdict
- Builder misrepresented home status to buyers — $675,000 verdict
- Low potassium led to cardiac arrest, death of patient — $1M settlement
- Excessive propofol caused death in dialysis patient — $850,000 settlement
- Pedestrian struck in crosswalk in hit-and-run incident — $300,000 settlement
- Navy veteran killed in collision with box truck — $1.85M arbitration award
- Motorcyclist ejected from bike in collision with SUV — $1.5M settlement
Opinion Digests
- Company owner dodges breach of contract suit
- Employee’s own allegations doom minimum wage claim
- Federal government defeats former employee’s claims
- Principal wasn’t entitled to exclusively remote work
- USPTO properly redacted info in responsive documents
- Untimely lawsuit allowed to proceed
- Engineering consultant dismissed from suit
- Rule 60 motion was filed too late
- Nonprofit directors immune from ex-employees’ claims
- City, employees immune from whistleblower claims
- Experts excluded in condemnation damages suit
- Judgment entered against company for horse’s death
