MEMORANDUM ORDER AND OPINION ON "FEE DEFENSE ATTORNEYS' FEES" PORTION OF BROWNSTEIN HYATT FARBER SCHRECK, LLP'S THIRD INTERIM APPLICATION FOR PROFESSIONAL COMPENSATION THOMAS B. McNAMARA , Bankruptcy Judge . I. Introduction . This difficult and lengthy Chapter 7 liquidation is slowly nearing the end. All creditors have already been paid in full. The final skirmishes are playing out over administrative expenses. Years ago, the Chapter 7 Trustee, Tom Connolly (the "Trustee"), retained...
MEMORANDUM OPINION AND ORDER DENYING ALL CLAIMS Thomas B. McNamara , United States Bankruptcy Judge . I. Introduction. Interest is the lubricant that keeps the machinery of the United States' financial markets humming. No bank wants to lend its money without some return on its capital. And no borrower expects to receive free funding from its lender. But what about 120.86% interest per year It's hard to believe that the management of any legitimate United States company would ever...
MEMORANDUM OPINION AND ORDER DENYING ALL CLAIMS THOMAS B. McNAMARA , Bankruptcy Judge . I. Introduction. Interest is the lubricant that keeps the machinery of the United States' financial markets humming. No bank wants to lend its money without some return on its capital. And no borrower expects to receive free funding from its lender. But what about 120.86% interest per year It's hard to believe that the management of any legitimate United States company would ever agree to pay such...
MEMORANDUM OPINION AFTER TRIAL Thomas B. McNamara , United States Bankruptcy Judge . I. Introduction . This is a true Shakespearean tragedy — but written in dry legal prose. The main character, Peter H. Blair, Sr., served as the patriarch of his family. Married to an heiress for almost 60 years, they were the beneficiaries of great wealth. He managed the money and served as an investment counselor for his extended family as well as other families of means. Peter H. Blair, Sr. and...
MEMORANDUM OPINION AND ORDER GRANTING DEFENDANTS' MOTION TO EXCLUDE EXPERT TESTIMONY Thomas B. McNamara , United States Bankruptcy Judge . Unreliable and irrelevant expert testimony is inadmissible. That cardinal principle is enshrined in Fed. R. Evid. 702 and is the central lesson of the United States Supreme Court's two seminal decisions on expert evidence: Daubert v. Merrell Dow Pharm., Inc., 509 U.S. 579 , 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993) and Kumho Tire Co., Ltd. v....
ORDER Michael E. Romero , Chief Judge . THIS MATTER comes before the Court on the Combined Motion to Approve: (1) Debtor's Purchase and Sale Agreement for the Commercial Real Estate Located at 1075 S. Yukon St. (Repurchase) as Amended; and (2) Postpetition Loans (" Motion "). 1 The Court, having reviewed the parties' filings and considered the parties' arguments made before it at the July 25, 2018 hearing on this matter, orders as follows. BACKGROUND There is no dispute concerning the...
MEMORANDUM OPINION AND ORDER Joseph G. Rosania, Jr. , United States Bankruptcy Judge . This case requires the bankruptcy court, as a court of equity, to determine whether the equities involved in this dispute favor the debtor or the creditor. Procedural Background Debtor, represented by counsel, filed her petition under chapter 7 of the Bankruptcy Code on February 4, 2015. After the case was fully administered, Debtor received her discharge, and the case was closed on July 8, 2015....
ORDER Joseph G. Rosania, Jr. , Bankruptcy Judge . The saga of the Health Trio, Inc. ("HT Inc.") bankruptcy case began on February 18, 2009 when an involuntary Chapter 7 bankruptcy petition was filed against it in the United States Bankruptcy Court for the District of Delaware. HT Inc. was originally owned and controlled by Dr. Malik M. Hasan ("Hasan"). Hasan also controls Health Trio, LLC ("HT LLC"). Over the years, Hasan engaged in a scheme to manipulate HT Inc.'s assets and defraud...
OPINION AND ORDER ON APPLICATION FOR ALLOWANCE OF ADMINISTRATIVE EXPENSE CLAIM (ELECTRICAL ENERGY) UNDER 11 U.S.C. 503(b)(9) Thomas B. McNamara , United States Bankruptcy Judge . I. Introduction. Electrical energy. Since Thales of Miletus (circa 585 B.C.) made his initial observations on the generation of static electricity by rubbing a piece of ilektron against fur, intellectuals have puzzled over the physics of the phenomenon. Great scientists like Alessandro Volta, Andr -Marie...
ORDER DISMISSING CASE JOSEPH G. ROSANIA, Jr. , Bankruptcy Judge . ISSUES The issues presented are whether the filing of this chapter 11 case was in good faith and whether proposing of the chapter 11 plan is in good faith. The Court conducted several hearings, including an evidentiary hearing on October 6, 2017, heard testimony from David J. Ladouceur ("Debtor") and legal argument and reviewed exhibits. The Court had a laborious time analyzing the Debtor's financial affairs from his...
ORDER DENYING MOTION TO ADMINISTRATIVELY CLOSE CASES Honorable Joseph G. Rosania, Jr. , United States Bankruptcy Judge . In this case, a liquidating trustee, whose sole existence flows from the debtors and their assets, liabilities, and confirmation of their Chapter 11 bankruptcy cases, seeks to avoid payment of post-confirmation statutory fees to the United States Trustee ("UST") through administrative closure. Debtors 1 filed for Chapter 11 in November 2015, and moved to consolidate...
MEMORANDUM OPINION AND ORDER GRANTING RELIEF FROM STAY AND COMPELLING ARBITRATION Thomas B. McNamara , United States Bankruptcy Court Judge . Does bankruptcy eclipse arbitration Arbitration proceedings pending before bankruptcy generally are stopped by the automatic stay — a key protection that allows a bankruptcy debtor breathing space to reorganize. However, the automatic stay is not impregnable. Section 362(d)(1) 1 of the Bankruptcy Code permits the Court to grant relief from the...
ORDER Michael E. Romero , Chief Judge . THIS MATTER comes before the Court on the Modified Chapter 13 Plan 1 and Motion for Post-Confirmation Modification 2 filed by Debtor Denise Rae Deese and the objection filed by the Chapter 13 Trustee Sally Zeman. 3 JURISDICTION AND VENUE The Court has jurisdiction over this matter under 28 U.S.C. 1334(a) and (b) and 157(a) and (b)(1). This is a core proceeding under 28 U.S.C. 157(b)(2)(L) as it involves confirmation of a Chapter 13 plan...
ORDER JOSEPH G. ROSANIA, Jr. Bankruptcy Judge . The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA") draws a critical distinction between whether the debts of a particular debtor are primarily consumer debts or primarily business debts in a Chapter 7 case. If the debts are primarily consumer debts in a Chapter 7 case, the court may dismiss such a case if the granting of Chapter 7 relief would be an "abuse" of the Bankruptcy Code. If the debts are primarily...
OPINION AND ORDER ON APPLICATION FOR ALLOWANCE OF ADMINISTRATIVE EXPENSE CLAIM (ELECTRICAL ENERGY) UNDER 11 U.S.C. 503(b)(9) THOMAS B. McNAMARA , Bankruptcy Judge . I. Introduction. Electrical energy. Since Thales of Miletus (circa 585 B.C.) made his initial observations on the generation of static electricity by rubbing a piece of ilektron against fur, intellectuals have puzzled over the physics of the phenomenon. Great scientists like Alessandro Volta, Andr -Marie Amp re, James...
ORDER Joseph G. Rosania, Jr. , United States Bankruptcy Judge . This case presents this Court with its first occasion to weigh in on the recent trend of lenders objecting to discharge at the conclusion of a Chapter 13 case because a debtor has failed to make post-petition mortgage payments. After a status conference, the Court asked the parties to brief the issue so it may consider the most recent decisions from other divisions of this Court in rendering its decision. The parties have...
OPINION AND ORDER DENYING, IN PART, MOTION TO QUASH SUBPOENAS FOR RULE 2004 EXAMINATION Thomas B. McNamara , United States Bankruptcy Judge . I. Introduction. The Federal Rules of Civil Procedure and Federal Rules of Bankruptcy Procedure are designed to promote the "just, speedy, and inexpensive determination of every action and proceeding." Fed. R. Civ. P. 1. But, the procedural rules also contain many traps for the unwary. The traps can be all the more confusing since the procedural...
ORDER ON CREDITORS' MOTION TO CONVERT TO CHAPTER 7 AND DEBTOR'S MOTION FOR VOLUNTARY DISMISSAL Howard R. Tallman , Judge United States Bankruptcy Court . THIS MATTER came before the Court on the following motions: (1) Motion to Convert Case from Chapter 13 to Chapter 7 filed by creditor Yellow Dog Properties, Inc. ("Yellow Dog") (docket # 139) (the "Motion to Convert"), creditor Kelly Sparks' Joinder in the Motion (docket # 144), creditor Sam Turner's Response in Opposition to the Motion...
ORDER DENYING MOTION TO DISMISS Thomas B. McNamara , United States Bankruptcy Judge . I. Introduction . During the Great Depression, Colorado adopted an unemployment compensation system as a safety net for "persons unemployed through no fault of their own." 1 Although the system has been modified over the years, 2 the foundation has remained the same. Employers are required to make contributions to an unemployment compensation fund administered by the State of Colorado (the "State")....
ORDER ON ADVERSARY COMPLAINT Howard R. Tallman , Judge, United States Bankruptcy Court . This case comes before the Court for trial of Plaintiff's Complaint for Denial of Discharge Pursuant to 11 U.S.C. 727(a)(3) and (a)(5) (docket #1). I. FACTS A. Stipulated Facts The following facts were stipulated to by the parties in their joint Pretrial Statement (docket #24) filed with the Court on February 19, 2016. 1. Richard K. Sears (the "Debtor") filed for relief under Chapter 7 of...
