MEMORANDUM OF DECISION ON DEFENDANTS' MOTION TO CONTINUE BENCH TRIAL IN THE LIGHT OF JURY-TRIAL DEMAND ROBERT D. DRAIN , Bankruptcy Judge . This Court scheduled a trial on the remaining issues in this adversary proceeding to begin March 31, 2020. After entry of this Court's order dated March 4, 2020, which largely granted Plaintiffs' motion for partial summary judgment on liability on all counts in accordance with the Court's bench ruling, the remaining issues for trial on Counts I through...
DECISION (1) DENYING REQUEST TO IMPOSE SANCTIONS ON DEBTOR'S COUNSEL, AND (2) GRANTING REQUEST TO IMPOSE SANCTIONS ON DEBTOR MICHAEL E. WILES , Bankruptcy Judge . On August 21, 2019, Summa Capital Corp. filed a motion seeking sanctions against the debtor, Boaz Bagbag, and Mr. Bagbag's counsel. The sanctions motion was filed after the Court denied Mr. Bagbag's request to vacate a June 10, 2010 Judgment (the "2010 Judgment") that had been entered against him and in favor of Summa Capital....
MEMORANDUM DECISION AND ORDER REGARDING TCG DEBT ACQUISITION'S MOTION FOR PARTIAL SUMMARY JUDGMENT STUART M. BERNSTEIN , Bankruptcy Judge . The Debtor, 1141 Realty Owner, LLC, borrowed $25 million from the predecessor of TCG Debt Acquisitions 2 LLC ("TCG"). TCG filed claims, described below, that included, among other things, default interest on the loan and associated attorneys' fees and expenses. TCG now moves for partial summary judgment seeking a determination that it is entitled to...
MEMORANDUM DECISION ON DEBTOR'S MOTION TO APPROVE TITLE TO AND DISTRIBUTION OF MARITAL PROPERTY PURSUANT TO TERM SHEET IN MATRIMONIAL ACTION, AND EXPUNGE CLAIM NO. 6 OF JENNIFER BROWN PURSUANT TO 11 U.S.C. 502(a) AND FED. R. BANKR. P. 3007 Honorable James L. Garrity, Jr. , United States Bankruptcy Judge . Introduction Michael Roger Brown (the "Debtor") filed a voluntary petition for relief under chapter 7 of title 11 of the United States Code (the "Bankruptcy Code") in this Court on...
NOT FOR PUBLICATION MEMORANDUM OPINION AND ORDER DENYING REQUEST FOR LEAVE TO PERMIT LATE-FILED PROOF OF CLAIM OF ANDREW R. SHADDOCK MARTIN GLENN , Bankruptcy Judge . Pending before this Court is the Motion to Accept Proof of Claim Late and Herewith filed by Andrew R. Shaddock ("Shaddock"), appearing pro se, requesting acceptance of a late-filed proof of claim. ("Motion," ECF Doc. # 10679.) In support of the Motion, Shaddock attaches the Notice of Bankruptcy Status submitted by...
MEMORANDUM DECISION DISMISSING AMENDED COMPLAINT AS BARRED BY THE STATUTE OF LIMITATIONS MICHAEL E. WILES , UNITED STATES BANKRUPTCY JUDGE . Plaintiff Stanley Waleski,(the "Plaintiff") has filed suit on his own behalf and on behalf of a purported class of persons (the "Avoca Plaintiffs") who claim they were injured by exposures to chemicals that were released from a plant in Avoca, Pennsylvania. Plaintiff alleges that Montgomery, McCracken, Walker & Rhoads, LLP ("MMWR") committed legal...
MEMORANDUM OF DECISION ON DEFENDANTS' OBJECTIONS TO "BANKRUPTCY COURT'S REPORT AND RECOMMENDATIONS" ROBERT D. DRAIN , Bankruptcy Judge . On January 28, 2020 this Court entered five orders in this adversary proceeding either granting in part and denying in part motions to strike expert reports and/or testimony or granting such motions [Dkt. Nos. 250-255] (collectively, the " Orders "). Each of the Orders was an interlocutory order; none finally decided the underlying claims before the...
MEMORANDUM OPINION GRANTING TRUSTEE'S MOTION FOR ENTRY OF A DEFAULT JUDGMENT MARTIN GLENN , UNITED STATES BANKRUPTCY JUDGE . Pending before the Court is a motion by Gregory M. Messer ("Messer" or the "Trustee") as chapter 7 trustee of the estate of Fyre Festival LLC ("Fyre Festival" or the "Debtor"), plaintiff in this adversary proceeding, seeking an order (a) declaring that (i) the funds raised for and by Fyre Festival were property of Fyre Festival, and (ii) the Trustee has the...
MEMORANDUM DECISION AND ORDER REGARDING CLAIMANT'S MOTION FOR RECONSIDERATION STUART M. BERNSTEIN , Bankruptcy Judge . The history of this long-running claim dispute is set forth most recently in the Court's Memorandum Decision and Order Granting Second Motion for Partial Summary Judgment And Allowing Claim 3103 In Part, dated Sept. 16, 2019 (" Second Decision ") (ECF Doc. # 2392.) Briefly, the claimant, Alan Wattenmaker, is a former employee of the debtor Avaya, Inc. ("Avaya"). 1 He...
MEMORANDUM DECISION FOLLOWING TRIAL Hon. Michael E. Wiles , United States Bankruptcy Judge . Before the Court is an adversary proceeding filed by the chapter 7 debtor, Christian Clavell, seeking a determination that more than $96,000 of student loan debt that he owes to the Department of Education (the "DOE") should be discharged. The outstanding debt is the product of a consolidation of other student loans and is evidenced by a promissory note dated February 6, 2013 (the "Consolidated...
MEMORANDUM DECISION AND ORDER GRANTING SUMMARY JUDGMENT IN FAVOR OF PLAINTIFF AND DISCHARGING DEBTOR'S STUDENT LOAN UNDER 11 U.SC. 523(a)(8) CECELIA G. MORRIS , CHIEF UNITED STATES BANKRUPTCY JUDGE . The Petitioner, Kevin Jared Rosenberg, brings this summary judgment asking the Court to declare the debt owed to Educational Credit Management Corporation ("ECMC") dischargeable, pursuant to 523(a)(8). For the reasons set forth in this Memorandum Decision, Plaintiff's motion for summary...
NOT FOR PUBLICATION MEMORANDUM OPINION GRANTING USC 1994 MADISON LLC'S MOTION (I) TO LIFT THE AUTOMATIC STAY PURSUANT TO 11 U.S.C. 362(d)(3) AND (II) FOR IN REM RELIEF PURSUANT TO 11 U.S.C. 362(d)(4) MARTIN GLENN , Bankruptcy Judge . Pending before the Court is the motion of USC 1994 Madison LLC's ("Movant") for entry of an order (1) granting relief from the automatic stay pursuant to Bankruptcy Code sections 105(a), 361, 362(d)(1), 362(d)(2), and 362(d)(3) so that it may...
MEMORANDUM DECISION DENYING MOTION FOR LEAVE TO FILE SECOND AMENDED COMPLAINT SIPA Liquidation (Substantively Consolidated). STUART M. BERNSTEIN , Bankruptcy Judge . Plaintiff Irving H. Picard, as trustee (the "Trustee") for the liquidation of Bernard L. Madoff Investment Securities LLC ("BLMIS") under the Securities Investor Protection Act, 15 U.S.C. 78aaa, et seq. ("SIPA"), has moved ("Motion") 1 for leave to file his Proposed Second Amended Complaint (" PSAC ") 2 seeking to...
MEMORANDUM DECISION GRANTING IN PART AND DENYING IN PART DEFENDANTS' MOTIONS TO DISMISS STUART M. BERNSTEIN , United States Bankruptcy Judge . The plaintiff, Vincent A. Sama, as trustee of the WW Litigation Trust ("Plaintiff"), asserts thirteen causes of action against nine remaining defendants (Kant was never served), all former officers and directors of the debtor WonderWork, Inc. ("Debtor" or "WW"). ( Complaint, dated Dec. 28, 2018 (ECF Doc. # 1).) 1 They include Brian Mullaney, the...
MEMORANDUM OPINION GRANTING FINAL RELIEF AND ORDERING THAT THE CASES BE CLOSED ON THE TERMS PROVIDED IN THE ACCOMPANYING ORDER MARTIN GLENN , UNITED STATES BANKRUPTCY JUDGE . As the history of these chapter 15 cases shows, sometimes the interplay between a foreign proceeding that is subject to appellate challenge in the foreign country, and the relief needed to effect the consummation of a plan approved by the foreign court and to close the chapter 15 cases, can seemingly lead to a ping-...
MEMORANDUM DECISION AND ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF'S MOTION FOR PARTIAL SUMMARY JUDGMENT STUART M. BERNSTEIN , United States Bankruptcy Judge : This class action concerns claims under the Worker Adjustment and Retraining Notification Act ("US WARN Act"), 29 U.S.C. 2101 et seq., and the New York Worker Adjustment and Retraining Notification Act ("NY WARN Act"), New York Labor Law ("NYLL") 860 et seq. (collectively, the "WARN Acts"), as well as unpaid...
MEMORANDUM OF DECISION SEAN H. LANE , UNITED STATES BANKRUPTCY JUDGE . Before the Court are cross-motions for partial summary judgment filed by the plaintiffs 1 —including the Liquidating Trust in the underlying bankruptcy case and certain class action plaintiffs with claims against one of the debtors—and eight of the defendants 2 —including various tiers of insurers—in the above-captioned adversary proceeding. 3 The Plaintiffs assert that their claims against Residential Funding Company,...
NOT FOR PUBLICATION MEMORANDUM OPINION AFTER TRIAL FINDING THAT SOUTH STREET'S TERMINATION OF THE MIPA WAS TIMELY AND THEREFORE NOT A BREACH OF THE MIPA MARTIN GLENN , Bankruptcy Judge . Plaintiff, Kenneth P. Silverman, as chapter 7 trustee (the "Trustee" or "Plaintiff") for the jointly administered bankruptcy estate of Lebenthal Holdings, LLC ("Holdings") and its affiliated debtors 1 brought this adversary proceeding (the "Action") against South Street Securities Inc. ("South Street"...
POST-TRIAL FINDINGS OF FACT AND CONCLUSIONS OF LAW STUART M. BERNSTEIN , Bankruptcy Judge . Pentagon Federal Credit Union ("Plaintiff") filed this adversary proceeding for a determination that a debt in the sum of $31,341.00 ("Debt") owed by the defendant and debtor Guillermo D. Fernandez Tineo ("Debtor") is not dischargeable under 11 U.S.C. 523(a)(2)(A) and (B). The Court conducted a trial on September 18, 2019, heard the testimony of two witnesses and received several exhibits. The...
SIPA LIQUIDATION POST-TRIAL FINDINGS OF FACT AND CONCLUSIONS OF LAW STUART M. BERNSTEIN , United States Bankruptcy Judge : Plaintiff, Irving H. Picard, as trustee (the "Trustee") for the liquidation of Bernard L. Madoff Investment Securities LLC ("BLMIS") under the Securities Investor Protection Act, 15 U.S.C. 78aaa, et seq. ("SIPA") brought these adversary proceedings to recover intentional fraudulent transfers (the "Two-Year Transfers," defined below) made by BLMIS to Carol Nelson...
