MEMORANDUM OF DECISION REGARDING TURNOVER OF ESTATE PROPERTY Re: Docket No. 594 ROBERT J. FARIS , Bankruptcy Judge . The trustee in bankruptcy, Dane S. Field, filed a motion to require the debtor, Adam Lee, to turn over certain estate property to the trustee and for a money judgment for the value of any property which the debtor failed to turn over. 1 In an order entered on April 15, 2019, I decided most of the issues presented by the motion but held that an evidentiary hearing was...
MEMORANDUM OF DECISION REGARDING CONTRACT REJECTION DAMAGES (PROOFS OF CLAIM NOS. 5 AND 7) Re: Docket. No. 120. ROBERT J. FARIS , Bankruptcy Judge . Epic Creations LLC dba Creations in Catering ("CIC") filed Proofs of Claim 5 and 7. Both claims seek damages based on the rejection of an executory contract. Debtor The Filipino Community Center, Inc. ("FilCom") objected to the claims. An evidentiary hearing on the objection was held on July 2 and 3, 2019. The parties filed post-hearing...
MEMORANDUM OF DECISION AFTER TRIAL ON "WILLFUL AND MALICIOUS INJURY" Related: Dkt. 1 ROBERT J. FARIS , Bankruptcy Judge . This case arises out of the tragic death of a seven-month-old baby girl while she was at day care. It is the worst nightmare of any parent, and the worst nightmare of any caregiver. The issue before me is whether the caregiver's debt to the parents and the estate of the baby girl is dischargeable in bankruptcy. This adversary proceeding was tried on September 17,...
FINDINGS OF FACT AND CONCLUSIONS OF LAW REGARDING UNITED STATES TRUSTEE'S MOTION TO DISMISS OR CONVERT CASE [Related Docket Entry: Dkt. #6] ROBERT J. FARIS , Bankruptcy Judge . The United States Trustee's Motion to Dismiss or Convert Case, filed on June 12, 2019, Dkt. #6 ("Motion") came on for hearing on June 24, 2019. Neil Verbrugge, Esq., appeared for the United States Trustee. No other appearances were made. The Court, having considered the United States Trustee's Motion, the...
MEMORANDUM OF DECISION ON MOTION TO DISMISS COMPLAINT Dkt. 19, 25, 29 ROBERT J. FARIS , Bankruptcy Judge . In this adversary proceeding, the chapter 7 trustee of Rolloffs Hawaii, LLC (the "Debtor") asserts fraudulent transfer and other claims against the Debtor's sole member, Trashmasters LLC, and related parties. In essence, the trustee argues that the defendants failed adequately to capitalize the Debtor, stripped it of funds and assets for their benefit, and left it unable to pay its...
FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER CONFIRMING THE FIRST AMENDED CHAPTER 11 PLAN OF REORGANIZATION OF AINA LE`A, INC., DATED APRIL 29, 2019; EXHIBITS A-C ROBERT J. FARIS , Bankruptcy Judge . The Confirmation Hearing of the First Amended Chapter 11 Plan of Reorganization of Aina Le`a, Inc. dated February 20, 2019, commenced on March 13, 2019, at 9:30 a.m., before the Honorable Robert J. Faris, United States Bankruptcy Judge for the District of Hawaii. Appearances are noted in...
MEMORANDUM OF DECISION ON MOTION FOR PARTIAL SUMMARY JUDGMENT Dkt. 68 ROBERT J. FARIS , Bankruptcy Judge . Hawaii Island Air, Inc. (the "Debtor") entered into transactions on the eve of and after its bankruptcy filing, pursuant to which the Debtor shipped certain aircraft parts, supplies, and tools to defendant AAR Supply Chain Inc. ("AAR") in exchange for promised payments totaling $1,200,000. AAR paid $800,000 to the Debtor and the Debtor immediately remitted $400,000 of that amount to...
FINDINGS OF FACT; CONCLUSIONS OF LAW AND ORDER GRANTING MTION FOR DEFAULT JUDGMENT AGAINST DEFENDANTS I SUN HWANG AND MARIA OTAKE Related Docket Nos. 428 and 429 ROBERT J. FARIS , Bankruptcy Judge . Plaintiff's Motion for Entry of Default Judgment Against Defendants I Sun Hwang and Maria Otake (the " Motion "), filed February 27, 2019, came on for hearing on March 29, 2019 (the " Hearing ") before the Honorable Robert J. Faris, United States Bankruptcy Judge. Ronald T. Ogomori, Esq....
MEMORANDUM DECISION REGARDING THE TRUSTEE'S FINAL APPLICATION FOR COMPENSATION Re: Docket No. 991, 995. ROBERT J. FARIS , Bankruptcy Judge . I. Introduction. Maui Industrial Loan and Finance Co., Inc., which did business as Maui Finance Company ("MFC"), was a company that was authorized to make loans but not authorized to accept deposits from the public. Lloyd Kimurl controlled MFC. After a state regulator ordered MFC to cease doing business, MFC commenced this bankruptcy case on...
MEMORANDUM OF DECISION ON MOTION TO LIFT AUTOMATIC STAY Dkt. 41 ROBERT J. FARIS , Bankruptcy Judge . Rich Sea Corp. ("Rich Sea") seeks relief from the automatic stay to allow continued prosecution of an action against the debtor in state court. I will deny the motion for two reasons. First, the action is no longer pending in the state court. The trustee has removed it to the bankruptcy court, and I have denied Rich Sea's motion to remand. 1 Granting stay relief is therefore unnecessary....
MEMORANDUM OF DECISION ON MOTION TO EXPUNGE LIS PENDENS Dkt. 6 ROBERT J. FARIS , Bankruptcy Judge . Dane S. Field, chapter 7 trustee of defendant Wai Yin Lam, moves the court to expunge a notice of pendency of action, or lis pendens, filed by plaintiff Rich Sea Corp. ("Rich Sea"). For the reasons that follow, I will grant the motion. Rich Sea commenced this action in state court, and the trustee removed it to the bankruptcy court. The case revolves around Zhong Hui Investment LLC ("ZHI")...
MEMORANDUM OF DECISION ON MOTION TO REMAND OR ABSTAIN Dkt. 14 ROBERT J. FARIS , Bankruptcy Judge . Plaintiff Rich Sea Corp. ("Rich Sea") moves the court to remand (or, alternatively, to abstain from deciding) this adversary proceeding, which Dane S. Field, chapter 7 trustee of defendant Wai Yin Lam, removed from state court. For the reasons that follow, I will deny the motion. I. FACTS This case revolves around Zhong Hui Investment LLC ("ZHI"). In 2014, Ms. Lam acquired a 2% membership...
