March 2008 Archives

first roundup in a while ...

Cir 6

In re: Triple S Restaurants, Inc., No. 07-5452

In a tort action removed to the bankruptcy court, the dismissal of a claim for intentional infliction of emotional distress by the debtor's general counsel , as well as the imposition of sanctions, was affirmed where: 1) the trustee acted within the scope of his authority when he stated he would refer a particular matter for criminal investigation if plaintiff would not agree to a settlement; 2) the claim of intentional infliction of emotional distress and outrage was properly dismissed; and 3) there was no abuse of discretion in imposing sanctions.

Cir 7

Maxwell v. KPMG, LLP, No. 07-2819

Where a suit by the chapter 7 trustee alleging that the debtor company was harmed by an accounting firm's breach of its duty of care, and summary judgment in favor of the defendant was affirmed because: 1) even assuming that defendant was negligent in its statement of the company's earnings, that statement was not the cause of an ill-fated business decision entered into by the company; and 2) the evidence presented did not support the claim for damages, the accounting firm was authorized to seek its Attorneys' fees before the District Court (hah!).

case update: cir 5, 6

Cir 5

Schlotzsky's, Ltd. v. Sterling Purchasing & Nat'l Distrib. Co., Inc., No. 06-50720A judgment in favor of restaurant franchisor on claims against food distributor under Lanham Act is affirmed over the distributor's claims that: 1) the Lanham Act was inapplicable; 2) an award of attorney's fees and an injunction should be overturned; and 3) its counterclaims should be reinstated.

Cir 6

In re: Long, No. 06-6252

Construing a gap in the most recent amendment to the Code against the creditor, a bankruptcy court holds that the surrender of a vehicle should wipe out the underlying debt entirely (though greater than the value of the car). Bankruptcy court is reversed and remanded and the higher court holds that the gap in the Code should be construed in a manner consistent with prior judicial decisions and statutory law (which favored the creditor).

reminder: call in waukeegan, il



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Starting March 14, 2008 bankruptcy matters for debtors in Lake County, Illinois will be heard in Waukegan at the following new location

Lakehurst Branch Court, Courtroom B

430 Lakehurst Road Waukegan, Illinois

in re lopresti, 07-15363; pension fund et al. v. lopresti, 07-01088



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Bankruptcy: In re Michael LoPresti, 07-15363
Opinion Issued: February 19, 2008
Judge: John H. Squires
View the opinion in PDF format here.

Adversary: Central States , Southeast and Southwest Areas Pension Fund, and Howard McDougall, Trustee v. Michael Lopresti, 07-01088

Opinion Issued: February 19, 2008
Judge: John H. Squires
View the opinion in PDF format here.

in re js II, llc et al., 07-3856

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Bankruptcy: In re J.S. II, L.L.C., et al., 07-3856

Opinion Issued: February 20, 2008

Judge: Hon. Jacqueline P. Cox

View the opinion as a PDF here

happy st. patrick's day! the new IRS standards are in!

U.S. Trustee Program

Effective March 17, 2008 the IRS will enforce National Standards for Allowable Living Expenses and Local Standards for Transportation and Housing and Utilities Expenses. The revised standards apply to cases filed on or after March 17, 2008.

See Collection Financial Standards for Food, Clothing and Other Items

See Collection Financial Standards for Health Care Expenses

See All Standards (UST page)