Chapter 7 ORDER ON FLORIDA BANK'S MOTION TO CONVERT TO CHAPTER 11 PURSUANT TO 11 U.S.C. 706(b) PAUL M. GLENN, United States Bankruptcy Judge THIS CASE came before the Court for a final evidentiary hearing to consider Florida Bank's Motion to Convert to Chapter 11 Pursuant to 11 U.S.C. 706(b). (Doc. 46). Under 706(b) of the Bankruptcy Code, the Court has the discretion to convert a Chapter 7 case to a case under Chapter 11 "based on what will most inure to the benefit of all parties...
Chapter 11 MEMORANDUM OPINION ON CROSS MOTIONS FOR SUMMARY JUDGMENT Michael G. Williamson, United States Bankruptcy Judge. Under 11 U.S.C. 550(a)(1), a trustee can recover the value of a preferential transfer from an initial transferee unless the transferee served as a mere conduit for the transfer and otherwise acted in good faith. Here, the Debtor made six preferential transfers to the Defendant as part of a settlement agreement in a preference action in another confirmed Chapter 11...
Chapter 7 ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT'S MOTION TO DISMISS THE COMPLAINT JERRY A. FUNK, United States Bankruptcy Judge. This proceeding is before the Court on the Debtor, Albert Carl Maier's ("Defendant"), Motion to Dismiss the Complaint Objecting to Discharge (Doc. 5, the "Motion to Dismiss"; see also Doc. 1, the "Complaint"). Plaintiff, Steele Matheny, t/a Steele Construction Co. (the "Plaintiff"), filed a response in opposition to the Motion to Dismiss (Doc. 6)....
ORDER GRANTING TRUSTEE'S MOTION TO DISMISS DEBTOR'S CHAPTER 13 CASE AND EXTENDING THE EFFECTIVE DATE TO ALLOW FOR DEBTOR'S CONVERSION TO ANOTHER CHAPTER JERRY A. FUNK, Bankruptcy Judge. This case is before the Court on the Chapter 13 Trustee's Motion to Dismiss the Debtor's Case (Doc. 13, the "Motion to Dismiss"). A final evidentiary hearing was held on April 19, 2012. The Debtor appeared at the hearing and testified. At the conclusion of the hearing, the parties were given an opportunity to...
Chapter 7 ORDER AND MEMORANDUM OPINION ON TRUSTEE'S MOTION TO ENLARGE TIME PERIOD TO BRING AVOIDANCE AND OTHER ACTIONS Michael G. Williamson, United States Bankruptcy Judge. Under the Eleventh Circuit's decision in In re International Administration Services, this Court has the discretion to enlarge the two-year limitations period under Bankruptcy Code 546(a) for bringing avoidance actions where the trustee has been unable to complete relevant discovery relating to her claims despite...
ORDER AND MEMORANDUM OPINION ON APPLICABILITY OF CRIME-FRAUD EXCEPTION MICHAEL G. WILLIAMSON, Bankruptcy Judge. The Defendants seek discovery of communications between the Plaintiff and her attorneys relating to a state court wrongful death settlement. The Plaintiff, naturally, claims those communications are protected from disclosure under the attorney-client and work product privileges. The Defendants, however, have invoked the crime-fraud exception to these privileges. The question before...
Chapter 7 MEMORANDUM OPINION AND JUDGMENT GRANTING DISCHARGE OF STUDENT LOAN DEBT K. Rodney May, United States Bankruptcy Judge. Introduction The United States Department of Education ("DOE") claims that the debtor owes $131,685.36 for 22 government insured student loans, all of which originated between 1983 and 1993. 1 The debtor seeks to have these loans discharged, claiming that excepting the debt from discharge would impose an undue hardship on him pursuant to 523(a)(8) of the...
Chapter 7 Substantively Consolidated MEMORANDUM OPINION ON PETITIONING CREDITORS' ADMINISTRATIVE EXPENSE APPLICATION Michael G. Williamson, United States Bankruptcy Judge Three creditors sued Ulrich Felix Anton Engler and Private Commercial Office — the Debtors in this case — in state court to recover money due under a promissory note. During their investigation in the state court case, the creditors discovered the Debtors were operating a Ponzi scheme. So the creditors filed this...
FINDINGS OF FACT, CONCLUSIONS OF LAW, AND MEMORANDUM OPINION PAUL M. GLENN, Bankruptcy Judge. THIS CASE came before the Court for a final evidentiary hearing in these adversary proceedings. The proceedings were consolidated for purposes of trial. Doreen Abbott, as Chapter 7 Trustee, commenced the proceedings by filing seven Complaints to Avoid Post-Petition Transfers against the named Defendants. The proceedings were brought pursuant to 549 of the Bankruptcy Code, which generally provides...
Chapter 13 MEMORANDUM OPINION SUSTAINING TRUSTEE'S OBJECTIONS TO PROPERTY CLAIMED AS EXEMPT Caryl E. Delano, United States Bankruptcy Judge Florida Statute 222.25(4) permits an individual who does not receive the benefit of Florida's constitutional homestead exemption to claim an expanded exemption in personal property, not to exceed $4,000.00. The Florida Supreme Court ruled in Osborne v. Dumoulin 1 that a bankruptcy debtor who does not claim his homestead property as exempt may cease...
Chapter 13 MEMORANDUM OPINION ARTHUR B. BRISKMAN, United States Bankruptcy Judge This matter came before the Court on the Complaint Seeking Exception to Debtor's Discharge (Adv. Pro. DE 1) filed by Plaintiff Patricia M. Gaetaniello against Defendant Thomas E. Gaetaniello ("Debtor"). A trial was held on June 19, 2013 at which Plaintiff and Debtor appeared, with their respective counsel. The Court requested the parties to file supplemental legal authority within 14 days. Debtor's counsel filed...
ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT'S MOTION TO DISMISS THE COMPLAINT JERRY A. FUNK, Bankruptcy Judge. This proceeding is before the Court on the Debtor, Albert Carl Maier's ("Defendant"), Motion to Dismiss the Complaint Objecting to Discharge (Doc. 5, the "Motion to Dismiss"; see also Doc. 1, the "Complaint"). Plaintiff, Steele Matheny, t/a Steele Construction Co. (the "Plaintiff"), filed a response in opposition to the Motion to Dismiss (Doc. 6). For the reasons set...
Chapter 7 ORDER ON (1) TRUSTEE'S OBJECTION TO DEBTOR'S CLAIM OF EXEMPTIONS, AND (2) TRUSTEE'S MOTION FOR TURNOVER PAUL M. GLENN, United States Bankruptcy Judge THIS CASE came before the Court to consider (1) the Trustee's Objection to Debtor's Claim of Exemptions, and (2) the Trustee's Motion for Turnover. (Docs. 20, 21). Under Florida's "wildcard" exemption, a debtor may claim personal property up to the value of $4,000.00 as exempt, unless he either claims or receives the benefit of a...
Chapter 7 MEMORANDUM OPINION DENYING PLAINTIFFS' RELIEF SOUGHT UNDER 523(a)(8) KAREN S. JENNEMANN, Chief United States Bankruptcy Judge Plaintiffs, Adam and Lisa Kelly, borrowed more than $160,000 from the Defendants to fund their educations. 1 They now seek to discharge their student loans under 523(a)(8) of the Bankruptcy Code 2 arguing the debt imposes an undue hardship on them and their dependents. 3 All of the Defendants, National Collegiate Trust ("NCT"), Educational Credit...
ORDER DIRECTING THAT DISCOVERY RELATED DOCUMENTS REDACTED AND WITHHELD BY UNDERWRITERS BE FILED UNDER SEAL FOR IN CAMERA INSPECTION JERRY A. FUNK, United States Bankruptcy Judge This proceeding is before the Court on Taylor, Bean & Whitaker Mortgage Corporation's ("TBW") Motion to Compel Underwriters 1 to Produce Documents (Doc. 465, the "Motion"). Defendants Federal Loan Mortgage Corporation ("Freddie Mac") and Sovereign Bank ("Sovereign") have each filed joinders to the Motion (Docs....
Chapter 7 MEMORANDUM OPINION AND ORDER GRANTING ESTATE OF JACKSON'S MOTION FOR SUMMARY JUDGMENT ON DEBTOR'S CLAIM OBJECTION Michael G. Williamson, United States Bankruptcy Judge The THI Receiver was defending Trans Health, Inc. ("THI") and the Debtor's wholly owned subsidiary, Trans Health Management, Inc. ("THMI") in six wrongful death cases. According to the THI Receiver, the lawyer for the wrongful death plaintiffs (Jim Wilkes) notified the THI Receiver (and his counsel) that his clients...
Chapter 7 ORDER AND MEMORANDUM OPINION DENYING DEFENDANT'S MOTION TO DISMISS Michael G. Williamson, United States Bankruptcy Judge THI Holdings agreed to indemnify the Debtor and Trans Health Management, Inc. ("THMI") for any losses relating to nursing home facilities operated by Trans Health, Inc. ("THI") and its subsidiaries other than THMI. According to the amended complaint in this proceeding, THI operated six nursing homes using THMI's assets; THI and THMI were sued for wrongful death...
Chapter 7 ORDER AND MEMORANDUM OPINION ON MOTION FOR RECONSIDERATION OF PRIVILEGE ISSUES Michael G. Williamson, United States Bankruptcy Judge This Court previously ruled in a March 2013 Memorandum Opinion that the Trustee, standing in the shoes of Trans Health Management, Inc. ("THMI"), was entitled to invoke the co-client exception to the attorney-client privilege to obtain certain communications between Trans Health, Inc. ("THI") — THMI's former corporate parent — and lawyers that THI (...
MEMORANDUM OPINION DENYING TD BANK'S MOTION TO STRIKE OR DISMISS DEBTOR'S MOTION TO EQUITABLY SUBORDINATE UNSECURED CLAIM KAREN S. JENNEMANN, Bankruptcy Judge. Aida's Paradise is a multi-member, Florida Limited Liability Company that owns valuable real property located on International Drive in Orlando's tourist corridor. Until recently, the Debtor leased a large portion of its holdings to a restaurant operated as the Salt Island Chophouse and Fish Market ("Salt Island"). The departure of...
AMENDED 1 SUPPLEMENTAL ORDER ON HANCOCK BANK'S OBJECTION TO INVOICES OF STEVEN S. OSCHER AND OSCHER CONSULTING, P.A. CATHERINE PEEK McEWEN, Bankruptcy Judge. These cases came on for consideration after a trial held on June 14, 2012, on the contested matter arising from the objection of Whitney National Bank n/k/a Hancock Bank (Doc. No. 591) (the "Objection") to post-confirmation invoices (the "Invoices") of Steven S. Oscher and Oscher Consulting, P.A. ("Oscher"). This order supplements...
