(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

(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

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

(Bankr. S.D. Ind. June 26, 2017)

The bankruptcy court dismisses without prejudice the debtor’s complaint against a foreclosing creditor because the court concludes it lacks subject matter jurisdiction. The debtor filed the complaint alleging numerous causes of action, including violations of the automatic stay. However, the alleged acts occurred at a time when the subject property was no longer property of the estate. Opinion below.

Judge: Carr

Attorneys for Debtor: Sabin, Shea & Des Jardines LLC, J. Andrew Sabin

(Bankr. E.D. Ky. June 21, 2017)

The bankruptcy court grants the defendant’s motion to dismiss the trustee’s complaint, which sought to avoid transfers from debtors to the defendant. The complaint failed to state a claim, in part because the defendant could not be deemed an “insider” of the debtor. The court additionally finds that the complaint contains insufficient facts to support various other claims. Opinion below.

Judge: Wise

Attorneys for Trustee: Bingham Greenbaum Doll LLP, Claude R. Bowles, Jr., Daniel J. Donnellon, James R. Irving, April A. Wimberg

(B.A.P. 6th Cir. June 20, 2017)

(S.D. Ind. June 2, 2017)

On 25 April 2017, the President of the Republic of Azerbaijan signed a decree approving the Law on Amendments to the Bankruptcy Law (the Amendments).

The Amendments incorporate the definition of related parties to the debtor in accordance with the Civil Code of the Republic of Azerbaijan (the Civil Code). The related parties include the persons described in Article 49-1.1 of the Civil Code as well as individuals dismissed from the debtor's management bodies within one year prior to the beginning of bankruptcy.

(6th Cir. B.A.P. May 18, 2017)

(Bankr. E.D. Ky. May 18, 2017)