(Bankr. E.D. Ky. Dec. 27, 2016)

The bankruptcy court dismisses the creditor’s non-dischargeability complaint under 11 U.S.C. § 523(a)(2)(A) and (a)(6). The creditor conceded that the debt was based on a breach of contract claim. However, the creditor alleged the debt was converted to a non-dischargeable debt based on the debtor’s post-judgment efforts to avoid collection. The court finds that the creditor failed to state a claim in part because the alleged behavior did not result in the debt sought to be declared non-dischargeable. Opinion below.

Judge: Schaaf

Bankruptcy

At the risk of stating the obvious, the collapse of oil and gas prices in the last several quarters has had a profound impact on the industry. Some E & P companies have been able to weather this storm, but other have not been so fortunate. In the time between 2014 and September 14, 2016, 102 oil and gas producers with cumulative debts of over $67 billion, 13 midstream companies with cumulative debts of over $17 billion and 132 oilfield service companies with cumulative debts of over $14 billion have filed bankruptcy petitions.

(7th Cir. Aug. 23, 2016)

(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

(Bankr. W.D. Ky. Apr. 22, 2016)

(Bankr. E.D. Ky. Mar. 21, 2016)

(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.

(E.D. Ky. Oct. 3, 2017)

The district court affirms the bankruptcy court’s interpretation of a final cash collateral order, holding the bankruptcy court did not abuse its discretion in finding a carve-out for payment of professional fees included prepetition collateral of the lenders. The text of the order along with a review of the case record made clear that the parties had agreed the prepetition collateral was included. $2.4 million in fees were awarded. Opinion below.

Judge: Wilhoit

(Bankr. W.D. Ky. July 28, 2017)

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