October 2008 Archives

case roundup - cir 1, 2, 3, 5

October 21, 2008, by

seal of the bankruptcy court

Cir 1 [Oct 06, 2008]

Gray v. Evercore Restructuring LLC, No. 072588

In a bankruptcy matter alleging gross negligence and breach of fiduciary duty for formulating and promoting an unworkable restructuring plan to the bankruptcy courts, judgment in favor of defendants is affirmed over claim that the district court erred in dismissing complain on in pari delicto defense grounds.

In Re High Voltage Eng'r Corp., No. 072589

In a bankruptcy matter, dismissal of trustee-plaintiff's claim is affirmed where: 1) the trustee filed his notice of appeal in the wrong set of cases; and 2) the misdirected filing deprived the district court of jurisdiction to modify, vacate, or rescind the fee awards.

In Re Engage, Inc., No. 081257

In a bankruptcy matter, questions on attorney's lien statute are certified where there was no controlling precedent and where the questions were determinative of the pending cause of actions. Certified questions are: 1) Does chapter 221, section 50 of the Massachusetts General Laws grant a lien on patents and patent applications to a Massachusetts attorney for patent prosecution work performed on behalf of a client? and 2) If chapter 221, section 50 of the Massachusetts General Laws does grant a lien and the issued patents or patent applications are sold, does the attorney's lien attach to the proceeds of the sale?

Cir 2 [Oct 14, 2008]

Browning v. MCI, Inc., No. 062079

Bankruptcy court's order enjoining property-owner plaintiff from further prosecuting state claims against defendant-MCI is affirmed where to the extent plaintiff's claims were viable under state law, they were pre-petition claims that were discharged by confirmation of defendant-MCI, Inc.'s plan of reorganization.

Cir 3 [Oct 16, 2008]

In Re: Mystic Tank Lines Corp., No. 06-4033

In a bankruptcy case, allowance of a state government's claim against debtor for damages for cleanup of contamination at a gas station is affirmed where: 1) the claim was subject to the police-power exception to the automatic stay against the pursuit of money judgments in bankruptcy cases; and 2) a state court had jurisdiction to enter a default judgment against debtor, notwithstanding that the state had already brought a related claim before the bankruptcy court.

Cir 5 [Oct 13, 2008]

Campbell v. Countrywide Home Loans Inc., No. 07-20499

In a suit accusing defendant of filing a claim attempting to collect a pre-petition debt in violation of an automatic stay in plaintiffs' Chapter 13 bankruptcy, an interlocutory order granting partial summary judgment for plaintiffs is reversed where: 1) unpaid escrow payments that accumulate pre-petition in the year that a bankruptcy petition is filed, and which the creditor had a right to collect under the loan documents, constitute a "claim" under the Bankruptcy Code; but 2) the filing of a proof of claim including the amounts of these payments does not by itself violate an automatic stay in a bankruptcy proceeding. (Revised opinion)

state-by-state bankruptcy guide

October 19, 2008, by

filings by state

who wins when you sell short?

October 19, 2008, by

things aren't getting any better ...

By Susanne Robicsek, North Carolina Bankruptcy Attorney

Short sales are being pushed as a win-win situation since the bank gets something, and the homeowner avoids foreclosure. To me it looks like a lose-lose-lose situation. Short sales hurt the mortgage company who loses money. The homeowner loses their home. Families that live around the property lose value in their homes since short sales and foreclosure drive down the values of the homes around it. This hurts families who did everything right, but are still pulled into a situation where they are also underwater on their home. Short sales are not going to stop the spiral of foreclosures that have contributed to the mortgage crisis, and although they might make sense for a particular property owner they can create their own problems.

1 in 6 homeowners, or nearly 12 million homeowners, are upside down on their mortgages. Experts believe that this number will climb to over 15 million in a year, and this figure could be higher if house prices continue to fall. This was reported in a story on ABC News Nightline on October 17, 2008 on the mortgage crisis. The story was on mortgages that were upside down or underwater, meaning that the house was worth more than what is owed. [full article]

Ed. Note - thanks to Jay Fleischman for the heads up on this article

Northern District Triple Play

October 6, 2008, by

seal of the bankruptcy court

In re Stamat, 07-13379

U.S. Trustee v. Stamat, 07-01278

Issued September 24, 2008

Judge Jack B. Schmetterer

View and Download the Opinion in PDF format here

In re Gage, 07-06876

Issued September 17, 2008

Judge John H. Squires

View and Download the Opinion in PDF format here

In re Cramer, 08-3853

Issued September 12, 2008

Judge A. Benjamin Goldgar

View and Download the Opinion in PDF format here

It's A Deal! Your Tax Dollars Fund Wall Street Bailout

October 3, 2008, by

George W. Bush

Charles Dharapak/AP by Alex Johnson of MSNBC

President Bush signs the Emergency Economic Stabilization Act of 2008 in the Oval Office after the House passed the financial bailout bill Friday.

Pelosi: Bill brings order to chaos

Oct. 10: House Democratic leaders Nancy Pelosi and Steny Hoyer describe improvements in the bailout bill.

Blunt: Revised finance bill protects taxpayers

Oct. 3: House Minority Whip Roy Blunt says that the finance bill that was passed by the House contains provisions that "virtually ensures" taxpayers won't lose money.

President Bush signed into law Friday a historic $700 billion bailout of the financial services industry, promising to move swiftly to use his sweeping new authority to unlock frozen credit markets to get the economy moving again.

"It"s complicated, and we"re going to make sure whatever we do is done in a deliberative fashion," Bush told reporters after he signed the bill as soon as he got it from the House, which passed the measure after a topsy-turvy week of legislative victories, defeats and power plays.

But he promised to get the ball rolling quickly, because the authority is "essential to helping Ameica"s economy weather the financial crisis." [read the rest of the story]