This week’s TGIF considers Tai-Soo Suk v Hanjin Shopping Co Ltd [2016] FCA 1404 in which the Court was required to determine the scope of a stay arising under the UNCITRAL Model Law on Cross Border Insolvency.
BACKGROUND
A Korean shipping company was subject to ‘rehabilitation’ proceedings in Korea. Rehabilitation proceedings seek to ‘rehabilitate’ insolvent debtors by restructuring their debt pursuant to a rehabilitation plan approved by the creditors and the Rehabilitation Court.
(Bankr. E.D. Ky. Dec. 6, 2016)
(Bankr. E.D. Ky. Nov. 28, 2016)
The bankruptcy court enters summary judgment in favor of the plaintiffs in this 11 U.S.C. § 523(a)(6) nondischargeability action. The plaintiffs had obtained a state court default judgment against the debtor for damages caused to them when the debtor drove to their home and shot one of the plaintiffs and injured the other plaintiff with flying debris. The court holds that collateral estoppel bars the debtor from relitigating the issue of whether the debtor caused a willful and malicious injury to the plaintiffs. Opinion below.
Judge: Wise
(6th Cir. B.A.P. Nov. 29, 2016)
(Bankr. W.D. Ky. Dec. 1, 2016)
Following trial, the bankruptcy court excepts from discharge a debt arising from a loan, but holds the plaintiff failed to meet its burden with respect to other debts. The court also finds that a lien was not created where there was no proof of an actual levy, but a seperate judgment lien is held valid. The court denies the debtor’s motion to avoid the lien. Opinion below.
Judge: Stout
Attorneys for Plaintiff: Thomas, Arvin & Adams, James G. Adams, III, David E. Arvin
(Bankr. E.D. Ky. Nov. 22, 2016)
The bankruptcy court grants the creditor’s motion to modify the stay to allow the creditor to proceed with the state court real property foreclosure action. The court finds that cause exists for stay relief for reasons including that this second bankruptcy filing by the debtor was pending for three months, the debtor’s plan depended on a sale of the property, the debtor had not taken any action to proceed with the sale, and there was no proof that the debtor’s spouse (co-owner of the property) would consent to the sale. Opinion below.
This week’s TGIF considers the recent decision of Hastie Group Ltd (in liq) v Moore [2016] NSWCA 305 in which the Court held that privilege attached to an expert report prepared for the purpose of obtaining litigation funding.
WHAT HAPPENED?
The Sixth Circuit affirms the 2015 consent order specifying the manner in which certain provisions of the confirmed Chapter 11 plan would apply to a class of claim holders. The Korean Claimants objected, arguing that the district court lacked authority to enter the consent order and that the consent order was an impermissible modification of the distribution agreement. The court holds that the court had the requisite authority to enter the consent order and it merely clarified the distribution agreement rather than modified it. Opinion below.
Judge: Kethledge
(Bankr. E.D. Ky. Nov. 15, 2016)
(S.D. Ind. Nov. 18, 2016)
The district court affirms the bankruptcy court’s holding that a tax penalty is dischargeable if the penalty is described by either 11 U.S.C. § 523(a)(7)(A) or (B). Opinion below.
Judge: McKinney
Attorney for Appellant: Peter Sklarew
Attorneys for Debtors: Camden & Meridew, PC, Julie A. Camden