(S.D. Ind. Feb. 8, 2016)

The district court affirms the bankruptcy court’s decision holding that the debtor was collaterally estopped from challenging the amount of the mortgage lender’s claim. The lender had obtained judgment in a prepetition state court foreclosure action, in which the debtor had presented the same arguments regarding the loan balance calculation. The district court finds that the doctrine of collateral estoppel applies and the claim amount could not be re-litigated in the bankruptcy. Opinion below.

(Bankr. S.D. Ind. Oct. 20, 2017)

The bankruptcy court dismisses the debtor’s complaint against the lender, which asserted claims related to the lender’s foreclosure of its mortgage lien in state court. The court dismisses the stay violation claim, because the property was not property of the estate at the time of the alleged acts, and dismisses the remaining claims because the court lacks subject-matter jurisdiction. Opinion below.

Judge: Carr

Attorney for Debtor: Sawin, Shea & Des Jardines LLC, J. Andrew Sawin

(Bankr. W.D. Ky. Sep. 1, 2017)

The bankruptcy court finds in favor of the debtor in this nondischargeability action. The creditor’s claim was based on missing restaurant equipment following the termination of a real property lease to the debtor. The court finds the creditor failed to present evidence establishing that the debtor was responsible for the loss. The elements of §§ 523(a)(2), (4), and (6) were not satisfied. Opinion below.

Judge: Fulton

Attorneys for Debtor: Farmer & Wright, PLLC, Todd A. Farmer

Attorney for Creditor: Steve Vidmer

(Bankr. E.D. Ky. June 29, 2017)

The bankruptcy court grants the defendants’ motion to dismiss in this adversary proceeding. The trustee sought to subordinate and recharacterize defendants’ claims under 11 U.S.C. § 510, avoid as fraudulent and preferential transfers certain transfers to the defendants, and disallow defendants’ claims. The court finds that the trustee fails to allege facts sufficient to support any of the claims. Opinion below.

Judge: Wise

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

The Sixth Circuit B.A.P reverses the bankruptcy court’s order granting the U.S. Trustee a second extension of the deadline to file a nondischargeability complaint and reverses the subsequent judgment denying the debtor a Chapter 7 discharge. The court finds that the U.S. Trustee failed to establish sufficient cause for an additional extension under Bankruptcy Rule 4004(b). Opinion below.

Judge: Harrison

Attorneys for U.S. Trustee: Amy L. Good, Scott Robert Belhorn, Sharon Nollsch

Attorney for Debtor: Lee Raymond Kravitz

(S.D. Ind. Feb. 27, 2017)

The district court dismisses the appeal because the bankruptcy court’s order was not final and appealable. The creditor had filed an emergency motion for stay relief to proceed with acquiring title to the debtor’s real property through Indiana’s tax sale and tax deed procedures. The bankruptcy court denied the motion without prejudice. The district court holds that the bankruptcy court’s order was not final, in part because it was without prejudice and appeared to be a preliminary decision. Opinion below.

Judge: Young

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

(Bankr. E.D. Ky. Nov. 15, 2016)

(Bankr. W.D. Ky. Sep. 1, 2016)

The bankruptcy court addresses the issue of whether the debtor’s prepetition claim for a surcharge before the Public Service Commission is property of the estate. The pre-petition receiver for the debtor argued that it was not, because the debtor abandoned its assets prepetition in the PSC action. The court disagrees, finding that legal title was not severed in the prepetition proceedings, and thus the bankruptcy trustee has control and authority over the surcharge claim. Opinion below.

Judge: Lloyd

(6th Cir. June 15, 2016)

The Sixth Circuit affirms the decision finding sanctions were appropriate against the attorney because he unreasonably and vexatiously multiplied the proceedings with repeated filings. The bankruptcy court did not abuse its discretion in entering the sanctions order. Opinion below.

Judge: White

Appellant: Dennis Allan Grossman

Attorney for Appellee: Louise M. Mazur, Marc Bryan Merklin, Brouse McDowell, Caroline Louisa Marks