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Access over workers' compensation decisions, including En Banc, Significant Panel Decisions, and writ-denied cases.

Case No. MISSING
Regular Panel Decision

In Re Fairpoint Communications, Inc.

Verizon Communications, Inc. appealed a bankruptcy court's confirmation order that included an injunction preventing Verizon from pursuing non-derivative claims against third parties, which could adversely affect FairPoint's bankruptcy estate. FairPoint, which acquired landline operations from Verizon, filed for Chapter 11 bankruptcy due to substantial debt. The reorganization plan featured a 'Verizon Injunction' designed to protect FairPoint's assets from claims where FairPoint might be liable for indemnification or contribution. The district court affirmed the bankruptcy court's jurisdiction to issue this injunction, holding that such contingent indemnification obligations directly impact the bankruptcy estate. The court also deemed Verizon's alternative argument, concerning the absence of 'unique circumstances,' as equitably moot, citing the substantial consummation of the reorganization plan and Verizon's failure to seek a stay of the confirmation order.

BankruptcyChapter 11 ReorganizationInjunctionsSubject Matter JurisdictionEquitable MootnessThird-Party ClaimsIndemnificationContributionAppellate ReviewDistrict Court Decision
References
18
Case No. No. 06-03609, No. 06-03654
Regular Panel Decision

Padilla v. Wells Fargo Home Mortgage, Inc. (In Re Padilla)

This case addresses how the Bankruptcy Code and Federal Rules of Bankruptcy Procedure affect a mortgage lender's right to collect 'Reimbursable Expenses' in Chapter 13 bankruptcy cases. The Court examined the collection of such expenses both pre- and post-confirmation of a Chapter 13 plan. It held that Bankruptcy Rule 2016(a) governs the collection of these expenses by mortgage lenders in Chapter 13 cases, both pre and post-confirmation. The Court determined that while Section 506(b) limits pre-confirmation expenses for oversecured creditors, it does not apply post-confirmation. Furthermore, the Court found that failure to comply with Rule 2016(a) or the imposition of unauthorized expenses would entitle a debtor to relief, but that such conduct does not violate the automatic stay. The cross-motions for partial summary judgment were denied due to insufficient evidence regarding actual collection of disputed charges.

Bankruptcy LawChapter 13Mortgage ServicingReimbursable ExpensesAttorney FeesBankruptcy ProcedureRule 2016(a)Section 506(b)Plan ConfirmationAutomatic Stay
References
86
Case No. 09-3356
Regular Panel Decision

Placid Oil Co. v. Williams (In re Placid Oil Co.)

This Revised Memorandum Opinion and Order addresses cross-motions for summary judgment in an adversary proceeding initiated by Placid Oil Company, a reorganized debtor from a 1980s Chapter 11 bankruptcy. Placid sought a determination that post-confirmation tort claims, filed by the Williams Defendants (Post-Confirmation Tort Claimants) in Louisiana state court for asbestos exposure, were discharged by Placid's 1988 bankruptcy confirmation order. The claims arose from the death of Mrs. Myra Williams due to mesothelioma, allegedly caused by indirect asbestos exposure from her husband's work clothes while he was employed by Placid at its Black Lake Facility pre-confirmation. Applying the 'pre-petition relationship test,' the bankruptcy court found that Mrs. Williams' exposure constituted a pre-petition 'claim' and that the Post-Confirmation Tort Claimants were 'unknown creditors.' Concluding that constructive notice via newspaper publication was sufficient for these unknown creditors and that appointing a future claims representative was not warranted, the court granted summary judgment in favor of Placid, discharging the tort claims.

Bankruptcy DischargeAsbestos ExposurePost-Confirmation ClaimsUnknown CreditorsDue Process NoticeSummary JudgmentPre-petition Relationship TestMesotheliomaTort LiabilityChapter 11 Reorganization
References
29
Case No. 2016 NY Slip Op 04714 [140 AD3d 958]
Regular Panel Decision
Jun 15, 2016

Matter of Klein v. Pereira

This case involves a proceeding initiated by Abraham Klein to confirm an arbitration award dated March 31, 2009. John S. Pereira, as Bankruptcy Trustee for the Bankruptcy Estate of Christine Persaud, appealed an order from the Supreme Court, Kings County, which granted the petition to confirm the award and denied his motion to vacate it. The Appellate Division, Second Department, affirmed the order, concluding that the appellant failed to demonstrate by clear and convincing evidence that the arbitrator had exceeded their power. The court noted that the arbitration clause was broad, granting the arbitrator authority to resolve 'any business dispute.'

arbitration awardCPLR article 75vacate arbitrationconfirm arbitrationarbitrator's powerappellate reviewKings Countybusiness disputebankruptcy trusteeagreement terms
References
5
Case No. 90-00985-B-11 through 90-00990-B-11 and 90-01984-B-11 through 90-01989-B-11
Regular Panel Decision
Aug 28, 1991

In Re Eagle Bus Manufacturing, Inc.

This case pertains to the confirmation of the Third Amended Plan of Reorganization under Chapter 11 for Greyhound Lines, Inc. and its Affiliated Debtors. The hearing was held on August 27 and 28, 1991, presided over by Bankruptcy Judge Richard S. Schmidt in the Southern District of Texas. Numerous creditors and interested parties appeared, and several objections to the plan were filed. The Court, after reviewing evidence and arguments, overruled the remaining objections and found that the plan satisfied all applicable provisions of the Bankruptcy Code. The plan outlines the restructuring of debtor operations, treatment of various claims, and the liquidation or reorganization of subsidiaries. The Court ultimately confirmed the plan, emphasizing its feasibility and good faith in seeking to maximize returns for creditors and ensure the continuation of essential public services, with a specific exception for Eagle Bus Manufacturing, Inc.

Chapter 11 ReorganizationBankruptcy ConfirmationDebtors-in-PossessionCreditor ObjectionsPlan FeasibilityGood Faith PlanSecured Claims TreatmentUnsecured Claims TreatmentPriority Tax ClaimsNLRB Claim Estimation
References
5
Case No. MISSING
Regular Panel Decision
Mar 14, 2018

Midstate Fin. Co. v. Peoples

Midstate Finance Company appealed the Bankruptcy Court's confirmation of Justin and Cathy Peoples's Chapter 13 plan. The appeal centered on two main issues: the valuation of the debtors' property for the "best interest of the creditors" test and the failure to discount Chapter 13 plan payments to net present value. The District Court affirmed the Bankruptcy Court's property valuation, finding it was not clearly erroneous given the evidence considered. However, the court reversed on the second point, holding that Chapter 13 plan payments must be discounted to net present value when applying the best interest of the creditors test. The case was remanded to the Bankruptcy Court for further proceedings consistent with this opinion.

BankruptcyChapter 7Chapter 13Creditors' RightsDebtorsProperty ValuationBest Interest TestNet Present ValueHomestead ExemptionLiquidation
References
17
Case No. MISSING
Regular Panel Decision

Cano v. GMAC Mortgage Corp. (In Re Cano)

This memorandum opinion addresses a class action brought by current and former Chapter 13 debtors, including the Canos, against GMAC Mortgage Corporation, L.L.C. Plaintiffs allege that GMAC improperly charged and collected undisclosed fees and costs during and after their bankruptcy plans, violating confirmed plans, Federal Rule of Bankruptcy Procedure 2016, and various Bankruptcy Code sections. The court partially grants GMAC's motion to dismiss certain claims based on specific Bankruptcy Code provisions (e.g., automatic stay, discharge injunction) which it found did not create private rights of action for post-confirmation conduct. However, the court denies dismissal for claims regarding violations of court orders confirming Chapter 13 plans and Rule 2016, affirming its jurisdiction and broad remedial authority under 11 U.S.C. § 105(a) to enforce these and protect the 'fresh start' principle of bankruptcy. The court also rejects GMAC's challenge to subject matter jurisdiction over a nationwide class action for such violations.

Bankruptcy LawChapter 13 DebtorsMortgage ContractsGMAC MortgageFees and CostsDischarge InjunctionAutomatic StayRule 2016Section 105Class Action Lawsuit
References
130
Case No. 2-04-255-CV
Regular Panel Decision
Jun 30, 2005

Anton Antonov and Tanev & Son Trucking v. Sonja Walters and Shawn Brown, in His Capacity as Chapter 7 Trustee for the Bankruptcy Estate of Delbert and Sonya Walters

The appellants, Anton Antonov and Tanev & Son Trucking, appealed a judgment in favor of Sonja Walters and Shawn Brown. Appellants raised three issues: Sonja Walters' lack of standing due to her bankruptcy, the trial court's denial of Shawn Brown's intervention, and the legal and factual insufficiency of evidence for Sonja's future medical expenses. The Court of Appeals affirmed the trial court's judgment, finding that Sonja had standing because her claims were properly exempted from the bankruptcy estate, Brown's intervention was timely as it related back to Sonja's original suit, and sufficient evidence supported the jury's award for future medical expenses given Sonja's permanent brain injury and ongoing treatment.

BankruptcyStandingInterventionFuture Medical ExpensesSufficiency of EvidencePersonal InjuryMotor Vehicle AccidentExemptionsChapter 7 TrusteeAppellate Review
References
31
Case No. 196-1545-260
Regular Panel Decision

Montague Pipeline Technologies Corp. v. Grace/Lansing & Grace Industries, Inc. (In Re Montague Pipeline Technologies Corp.)

The case involves a motion by Grace-Lansing and Grace Industries, Inc. (Grace) to remand an adversary proceeding back to the New York State Supreme Court, Kings County, and for relief from an automatic stay. The Debtor, Montague Pipeline Technologies, Inc., had removed the action, which concerned the confirmation of an arbitration award in favor of Grace, after filing for Chapter 11 bankruptcy. The Court, presided over by Chief Judge Conrad B. Duberstein, applied the 'Drexel factors' to evaluate the request for remand, concluding that equitable grounds favored sending the action back to state court due to efficient administration of the bankruptcy estate, predominance of state law, and comity. The Court also granted Grace's motion for relief from the automatic stay, finding 'cause' based on the 'Sonnax factors,' to allow the state court to finalize the arbitration award and fix Grace's claim, thereby facilitating the Debtor's reorganization plan.

BankruptcyRemandAutomatic StayArbitration AwardState LawFederal Arbitration ActJudicial EconomyComityChapter 11Dispute Resolution
References
38
Case No. MISSING
Regular Panel Decision

Big Yank Corp. v. Liberty Mutual Fire Insurance (In Re Water Valley Finishing, Inc.)

This case is an appeal from an adversary proceeding in the United States Bankruptcy Court for the Southern District of New York. The Bankruptcy Court ruled that a Kentucky district court's award of sanctions against Big Yank Corporation, in the form of attorney's fees, was discharged in bankruptcy under 11 U.S.C. § 1141(d)(1). Liberty Mutual Fire Insurance Company, the appellant, challenged this ruling, arguing the claim did not arise until after the confirmation of Big Yank's reorganization plan. The District Court affirmed the Bankruptcy Court's decision, finding that the possibility of the sanctions claim was within the contemplation of the parties prior to the bankruptcy petition and plan confirmation, thus making it a pre-petition claim discharged by the plan.

Bankruptcy AppealSanctions DischargeAttorney's FeesChapter 11 ReorganizationClaim AccrualPre-petition ClaimContingent ClaimUnmatured ClaimBad Faith LitigationFederal Bankruptcy Law
References
20
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