Memorandum Regarding: I. Certification Under 28 U.S.C. 158(d)(2)(A)(i) II. Recommendation on Whether Direct Appeals Should Be Authorized and III. Parties' Request to Recommend Expedited Consideration of Appeals STEVEN RHODES, Bankruptcy Judge. Summary Under 28 U.S.C. 158(d)(2)(A), a court of appeals has jurisdiction over a direct appeal upon two conditions: (1) a certification that one of the circumstances identified in subsections (i), (ii) or (iii) of 158(d)(2)(A) exists;...
Opinion Regarding Eligibility STEVEN RHODES, Bankruptcy Judge. The Congress shall have Power To ... establish ... uniform Laws on the subject of Bankruptcies throughout the United States.... Article I, Section 8, United States Constitution No ... law impairing the obligation of contract shall be enacted. Article I, Section 10, Michigan Constitution The accrued financial benefits of each pension plan and retirement system of the state and its political subdivisions shall be a contractual...
Opinion and Order Denying NAACP's Motion for Relief from Stay (Dkt. # 740) and Granting Phillips' Motion for Relief from Stay (Dkt. # 1004) STEVEN RHODES, Bankruptcy Judge. This opinion addresses two motions for relief from the stay. The first motion (Dkt. # 740) relates to Detroit Branch NAACP v. Snyder, No. 13-12098 (E.D. Mich. filed May 13, 2013). The other motion (Dkt. # 1004) relates to Phillips v. Snyder, No. 13-11370 (E.D. Mich. filed March 27, 2013). Both suits challenge the...
OPINION REGARDING THE CHAPTER 7 TRUSTEE'S MOTION FOR APPROVAL OF SETTLEMENT THOMAS J. TUCKER, Bankruptcy Judge. This case is before the Court on the Chapter 7 Trustee's motion entitled "Chapter 7 Trustee's Motion Pursuant to Fed. R. Bankr.P. 9019 Authorizing and Approving Settlement Agreement by and Between Chapter 7 Trustee and Charles E. Becker, Charles E. Becker, Trustee under Trust Agreement of Charles E. Becker Dated September 16, 1997, as Amended, and Becker Ventures, LLC [(collectively...
Opinion and Order Denying Motion to Stay Proceedings Pending Determination of Motion to Withdraw the Reference STEVEN RHODES, Bankruptcy Judge. On September 11, 2013, the Official Committee of Retirees filed a motion to withdraw the reference on its objection to eligibility. (Dkt. #806) On September 13, 2013, the Committee filed a motion to stay this Court's deadlines and hearings concerning the determination of eligibility, pending the district court's decision on the motion to withdraw the...
OPINION DENYING IN PART AND GRANTING IN PART DEFENDANT'S PARTIAL MOTION FOR DISMISSAL PHILLIP J. SHEFFERLY, Bankruptcy Judge. Introduction The debtors in these jointly administered Chapter 7 bankruptcy cases operated a Ponzi scheme in which investors lost millions of dollars. The Chapter 7 trustee filed a 16 count complaint against an accounting firm that provided services to the debtors. The accounting firm filed a motion requesting dismissal of 11 counts of the complaint. For the reasons...
OPINION AND ORDER DENYING DEFENDANT'S APPLICATION TO PROCEED IN FORMA PAUPERIS THOMAS J. TUCKER, Bankruptcy Judge. This adversary proceeding is before the Court on Defendant Barbara Jean Smith's ("Defendant's") application to proceed in forma pauperis under 28 U.S.C. 1915(a) (the "Application"), 1 on her appeal to the district court of three bankruptcy court orders: (i) the Court's "Opinion and Order Dismissing Defendant's `Compulsory Counter-Claim[s],' and Denying Plaintiff's Motion...
OPINION REGARDING CONFIRMATION OF DEBTOR'S FOURTH AMENDED PLAN OF REORGANIZATION THOMAS J. TUCKER, Bankruptcy Judge. This case is before the Court on confirmation of Debtor Waterford Hotel, Inc.'s ("Waterford Hotel's" or "Debtor's") Fourth Amended Plan of Reorganization, filed on March 11, 2012 (the "Fourth Amended Plan" or the "Plan"). 1 Several parties filed objections to confirmation, but all such objections have since been resolved by settlement, except those of one creditor. The only...
OPINION DENYING PLAINTIFF'S MOTION FOR SUMMARY JUDGMENT WALTER SHAPERO, Bankruptcy Judge. INTRODUCTION Defendants pled guilty to Embezzlement from a Vulnerable Adult in a state court proceeding and were ordered to pay restitution. Plaintiff filed this adversary proceeding seeking nondischargeability of the restitution amounts under various subsections of 11 U.S.C. 523 and now seeks summary judgment. For the following reasons, summary judgment is denied. BACKGROUND Joseph Rayes and...
OPINION GRANTING IN PART MOTION UNDER SECTION 543(c) OF THE BANKRUPTCY CODE PHILLIP J. SHEFFERLY, Bankruptcy Judge. Introduction Prior to the filing of this Chapter 7 case, two state court officers seized two automobiles belonging to one of the debtors for the purpose of selling them to satisfy a judgment obtained by a creditor against that debtor. When the bankruptcy case was filed, the state court officers still had possession of the automobiles. The state court officers filed a motion...
OPINION REGARDING (1) "MOTION TO SET ASIDE ORDER DATED 10/31/2012;" AND (2) "DEBTOR'S MOTION FOR SANCTIONS AND TO ENFORCE OCTOBER 31, 2012 [ORDER] TO RETURN 2002 SUZUKI MOTORCYCLE TO DEBTOR" THOMAS J. TUCKER, Bankruptcy Judge. This Chapter 7 case requires to Court to decide the following question of Michigan law: when a judgment creditor causes a motorcycle to be sold at an execution sale, what events must occur before ownership of the motorcycle changes from the judgment debtor to the...
OPINION REGARDING DEBTOR'S MOTION FOR SANCTIONS THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction This Chapter 13 case is before the Court on the Debtor's motion entitled "Debtor's Motion for Sanctions Pursuant to 11 U.S.C. 362(k)(1)" (Docket # 22, the "Motion"). The Debtor seeks compensatory and punitive damages, and an award of attorney fees, against a creditor, B & R Auto Repairs and Towing, LLC ("B & R"). Before Debtor filed bankruptcy, B & R made repairs to Debtor's car, and refused...
OPINION AND ORDER DISMISSING DEFENDANT'S "COMPULSORY COUNTER-CLAIM[S]," AND DENYING PLAINTIFF'S MOTION TO DISMISS THE COUNTERCLAIMS AS MOOT THOMAS J. TUCKER, Bankruptcy Judge. The Defendant in this adversary proceeding filed counterclaims against the Plaintiff, consisting of seven counts (Counts I through VII), which Defendant labeled a "Compulsory Counter-Claim." (Docket # 8 at 6-11). Plaintiff filed a motion to dismiss the counterclaims, entitled "Motion To Dismiss The `Defendant's...
OPINION AND ORDER DENYING DEFENDANT DEBTOR'S MOTION FOR STAY PENDING APPEAL THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction On May 30, 2013, the Court entered an order, which (1) granted Plaintiff's motion for summary judgment; (2) denied Defendant's motion for summary judgment; and (3) determined that (a) Defendant's debt to Plaintiff is nondischargeable under 11 U.S.C. 523(a)(6), and (b) the permanent injunction entered by the state court is not discharged or affected by Defendant...
OPINION DENYING PLAINTIFF'S MOTION FOR SUMMARY JUDGMENT AND GRANTING DEFENDANT'S MOTION FOR SUMMARY JUDGMENT PHILLIP J. SHEFFERLY, Bankruptcy Judge. Introduction On June 21, 2012, the Debtor filed this Chapter 7 case. On September 10, 2012, Sandra User Green filed this adversary proceeding against the Debtor for a determination that the pre-petition fees that she incurred as a state court receiver in the amount of $7,577.68 are non-dischargeable in the Debtor's Chapter 7 bankruptcy case...
OPINION REGARDING DEBTOR'S MOTION FOR STAY PENDING APPEAL THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction On November 2, 2012 the Court entered an order which, among other things, converted this case from Chapter 11 to Chapter 7, "effective immediately." The Order is entitled "Order Granting, in Part, the Becker Parties' Latest Motion to Sanction Debtor ..., Granting the Pending Motions to Convert, and Converting this Case to Chapter 7" (the "November 2 Order"). 1 On November 15, 2013,...
OPINION SUSTAINING BANK OF AMERICA'S OBJECTION TO CONFIRMATION MARCI B. McIVOR, Bankruptcy Judge. The issue before this Court is whether the anti-modification provision of 11 U.S.C. 1322(b)(2) applies to Debtor's residence at 2047 Ferdinand Street, Detroit, Michigan. Debtors' Plan contains language which attempts to cram down the amount owed on the mortgage on the property located at 2047 Ferdinand to the actual value of the property. Creditor Bank of America objects to the confirmation of...
OPINION REGARDING MOTION OF AMERI-SOURCE SPECIALTY PRODUCTS FOR ALLOWANCE OF ADMINISTRATIVE CLAIM AND TO COMPEL PAYMENT THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction The dispute now before the Court requires the Court to decide, among other things, whether an administrative expense request under 11 U.S.C. 503(b)(9) may ever be disallowed based on 11 U.S.C. 502(d). The answer is no, for the reasons stated below. II. Background and facts These two jointly-administered Chapter 11...
OPINION REGARDING CREDITOR SUMMIT GROUP HOLDINGS, LLC'S OBJECTIONS TO CONFIRMATION THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction This case came before the Court for two hearings on confirmation of the Debtor's proposed Chapter 13 plan (Docket # 12, the "Plan"). The Court then held an evidentiary hearing regarding the objection to confirmation of the unsecured creditor Summit Group Holdings, LLC ("Summit Group"), that the Debtor's Plan is not proposed in good faith as required by 11 U.S....
OPINION REGARDING THE UNITED STATES TRUSTEE'S MOTION TO DISMISS THOMAS J. TUCKER, Bankruptcy Judge. The United States Trustee (the "UST") filed a motion to dismiss this Chapter 7 case, on the ground that the case is an "abuse" of Chapter 7, within the meaning of 11 U.S.C. 707(b)(1). 1 To demonstrate such abuse, the UST relies on the "presumption of abuse" provisions of 11 U.S.C. 707(b)(2); and alternatively, points to the totality of the Debtors' financial circumstances under 11 U.S.C....
