(6th Cir. B.A.P. Nov. 7, 2016)
(Bankr. E.D. Ky. Oct. 11, 2017)
The bankruptcy court enters judgment in favor of the Chapter 11 trustee, holding the trustee is entitled to recover approximately $280,000 in post-petition transfers and recover $40,000 in prepetition payments. The debtors repaid a post-petition loan that was not approved by the bankruptcy court and which was not in the ordinary course. The prepetition payments were preferential and the new value defense and ordinary course defenses do not apply. Opinion below.
Judge: Schaaf
Attorney for Trustee: Fowler Bell PLLC, Matthew D. Ellison
(Bankr. E.D. Ky. May 18, 2017)
(Bankr. E.D. Ky. Jan. 6, 2017)
(Bankr. E.D. Ky. Nov. 11, 2016)
The bankruptcy court grants summary judgment in favor of the trustee in this declaratory judgment action, in which the plaintiff sought a judgment that certain health insurance proceeds were not property of the estate. The plaintiff argued that the debtor had assigned the proceeds to it prior to the bankruptcy, but the court holds that the evidence presented did not establish such assignment. The debtor’s spouse had signed the document for him, but the debtor’s spouse did not have the requisite agency authority to do so. Opinion below.
(E.D. Ky. Oct. 6, 2017)
The district court affirms the bankruptcy court’s order granting the trustee’s motion to dismiss the complaint. The trustee has the exclusive right to pursue claims asserted in the complaint. The appellant’s arguments that the lawsuits were distinct are rejected. If the appellant and trustee could both pursue the claims there would be a significant chance of a double recovery. Opinion below.
Judge: Wilhoit
(Bankr. W.D. Ky. May 12, 2017)
The bankruptcy court enters summary judgment against the debtor holding the debt nondischargeable pursuant to 11 U.S.C. § 523(a)(4). The plaintiffs inherited a judgment against the debtor that was based on the debtor’s theft of the decedent’s property. The plaintiffs were the proper parties to bring the claim, as the decedent’s estate assigned the judgment to them, and the requirements of § 523(a)(4) were satisfied. Opinion below.
Judge: Lloyd
Attorneys for Plaintiffs: Crain – Schuette Attorneys, Amanda Lisenby Blakeman
(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
(Bankr. E.D. Ky. Nov. 1, 2016)
The bankruptcy court grants the debtor’s motion for summary judgment in this 11 U.S.C. § 523(a)(6) nondishargeability action. The plaintiff alleged the debtor willfully and maliciously injured the plaintiff, but failed to offer any evidence that would create a material factual dispute as to the debtor’s intent with respect to actions that gave rise to a prepetition judgment against the debtor. The court finds summary judgment in favor of the debtor is appropriate. Opinion below.
Judge: Wise
(Bankr. E.D. Ky. Oct. 4, 2017)
The bankruptcy court grants in part the debtor’s motion to avoid a judicial lien on two parcels of real property. Applying the formula in 11 U.S.C. § 522(f), the court determines that the debtor’s exemption is impaired with respect to one parcel but not the other. Opinion below.
Judge: Schaaf
Attorneys for Debtor: Michael B. Baker, James R. Westenhoefer
Attorneys for Creditor: DelCotto Law Group PLLC, Sara A. Johnston