(Bankr. E.D. Ky. Oct. 12, 2017)

The bankruptcy court awards damages to the debtor for the creditor’s willful violation of the automatic stay. The debtor had an agreement with the tanning bed salon in which the salon would deduct a monthly payment from her debit card. Despite numerous notifications of the bankruptcy and the violation of the automatic stay, the salon continued to make the deductions post-petition. The court enters an award for damages that includes attorney fees and punitive damages. Opinion below.

Judge: Wise

Attorney for Debtor: Grant M. Axon

(6th Cir. Aug. 31, 2017)

(6th Cir. B.A.P. June 28, 2017)

The Sixth Circuit B.A.P. affirms the bankruptcy court’s entry of summary judgment, finding the debt owed to the plaintiff nondischargeable under 11 U.S.C. § 523(a)(6). The plaintiff had obtained a judgment against the debtors in state court on a conversion claim. The court holds that collateral estoppel applies and the elements of § 523(a)(6) were satisfied by the state court judgment. Opinion below.

Judge: Delk

Attorneys for Debtors: Schram, Behan & Behan, Michael R. Behan; Eiler Law Firm, Christian Michael Eiler

(6th Cir. B.A.P. April 17, 2017)

(Bankr. S.D. Ind. Feb. 24, 2017)

The bankruptcy court denies the plaintiff’s motion for summary judgment in this nondischargeability action under 11 U.S.C. §§ 523(a)(2), (4), and (6). The plaintiff argued that a state court judgment collaterally estopped the debtor from defending against the claims. The court holds that the findings in the state court judgment are insufficient to prevent the debtor from asserting a defense in this action. Opinion below.

Judge: Carr

Attorney for Plaintiff: Mulvey Law LLC, Joseph L. Mulvey

(Bankr. E.D. Ky. Jan. 6, 2017)

The bankruptcy court overrules the creditor’s objection to confirmation of the Chapter 13 plan. The creditor argued its claim, secured by the debtors’ mobile home, should be increased by the cost of delivery and set-up of the home. The court holds that set-up and delivery costs may not be used as a means to increase the replacement value as a matter of law. Opinion below.

Judge: Wise

Attorney for Debtor: Daryle M. Ronning

Attorneys for Creditor: McBrayer, McGinnis, Leslie & Kirkland, Zachary A. Horn

(6th Cir. B.A.P. Nov. 7, 2016)

(7th Cir. Aug. 23, 2016)

(7th Cir. June 13, 2016)

(7th Cir. Apr. 14, 2016)

The Seventh Circuit applies Wisconsin state law and holds that a mortgage can attach a lien to a vendor’s interest in a real estate contract and that the lender perfected the lien by recording in the county land records rather than filing a UCC-1 financing statement. The trustee is unable to avoid the lien. Opinion below.

Judge: Hamilton

Attorneys for Trustee: Michael F. Dubis, Christopher R. Schultz

Attorneys for Appellees: Ruffi Law Offices, Sara Lynn Ruffi, Lund Law Office, Brad M. Lund