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

(6th Cir. Oct. 3, 2016)

The Sixth Circuit affirms the district court’s dismissal of the pensioners’ challenge to the confirmation order entered in the Chapter 9 bankruptcy case filed by the City of Detroit, Michigan. The pensioners filed the action to challenge the plan’s reduction of their benefits. The Court holds that the doctrine of equitable mootness applies. The pensioners did not obtain a stay, the plan has been substantially consummated, and many actions have been undertaken or completed under the plan. Opinion below.

Judge: Batchelder

(6th Cir. May 2, 2017)

The Sixth Circuit reverses the bankruptcy court, finding that the assignment of rents acted as a complete transfer of ownership and the assignor did not retain any interest in the rents. The court analyzes Michigan law on such assignments and concludes that because the debtor/assignor had no rights in the rents assigned, they were not property of the bankruptcy estate. Opinion below.

Judge: Stranch

Attorney for Appellant: Robert N. Bassel

Attorney for Appellee: Jeremy S. Friedberg

(6th Cir. B.A.P. Sep. 30, 2016)

(6th Cir. April 28, 2017)

The Sixth Circuit affirms the district court and the bankruptcy court, holding that the sale of certain equity interests in the debtor to third parties was prohibited by the confirmed Chapter 11 plan. While the plan was silent as to such sales, the bankruptcy court did not abuse its discretion when interpreting the plan and considering the intent of the parties based on the negotiations that resulted in the final confirmed plan. Opinion below.

Judge: Donald

(W.D. Ky. Aug. 15, 2016)

(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

(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

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

(6th Cir. June 6, 2016)

The Sixth Circuit affirms the B.A.P. and dismisses the appeal for lack of jurisdiction. Following the principal creditor’s objection, the bankruptcy court denied the trustee and debtors’ motion to approve a settlement of a legal malpractice claim held by the estate. The debtors appealed. The court finds that the appealed order was not a final order that could be appealed because the debtors were free to propose a new settlement for approval. Opinion below.

Judge: Kethledge