MEMORANDUM OPINION LETITIA Z. PAUL, Bankruptcy Judge. The court has held an evidentiary hearing on its Order to Show Cause (Docket No. 45). 1 A hearing was set for July 18, 2013 on confirmation of Debtors' Chapter 13 plan, and the Trustee's motion to dismiss. At the hearing on July 18, 2013, Mrs. Kuykendall testified regarding several matters concerning the activities of Debtors' then-counsel of record (Seth Crosland), and a Florida entity called Consumer Attorney Services ("CAS"). The...
MEMORANDUM OPINION MARVIN ISGUR, Bankruptcy Judge. Robert E. Ogle, the Plan Agent under HDD Rotary Sales, LLC's confirmed plan of reorganization, sued JT Miller, Inc. and Jay Miller to avoid alleged fraudulent conveyances made in the 2009-2010 time period. An initial trial was held on whether HDD was insolvent on the dates of the alleged transfers. Mr. Ogle did not sustain his burden of proof as to insolvency on the date of the first alleged HDD obligation (June 30, 2009). HDD was insolvent...
MEMORANDUM OPINION MARVIN ISGUR, Bankruptcy Judge. Great Central Mortgage Acceptance Company, Ltd. ("Great Central") seeks an order designating Yishlam, Inc. ("Yishlam") a "single asset real estate" ("SARE") debtor pursuant to 11 U.S.C. 101(51B). Because Great Central has failed to meet its burden of proof that the properties satisfy the definition of a SARE, the motion is denied. Background Yishlam filed a chapter 11 petition (the "Petition") on May 6, 2013. On May 31, 2013, Great...
MEMORANDUM OPINION ON SHOW CAUSE ORDER [Doc. No. 157] JEFF BOHM, Chief Judge. I. INTRODUCTION The Court writes this Memorandum Opinion for two reasons: (1) to reiterate the central importance of professional and ethical conduct in the practice of law; and (2) to inform the debtors' bar that the undersigned judge has now become sufficiently disenchanted with the use of appearance attorneys that henceforth, their use will no longer be permitted. 1 The professional handling of a debtor's...
MEMORANDUM OPINION MARVIN ISGUR, Bankruptcy Judge. The Court must determine whether Lowell Cage must be removed as the chapter 7 Trustee in this case. Because the Court has determined that Cage has faithfully honored his duties as Trustee, he will not be removed. Mr. Cage has recovered approximately $1.5 million dollars in his capacity as Trustee for the Estate. With Court approval, the Trustee retained his own law firm, Cage, Hill & Niehaus, L.L.P. ("Cage Hill") as counsel. In its Third...
MEMORANDUM OPINION RELATING TO FOUNDATION CAPITAL RESOURCES, INC.'S MOTION TO DISMISS FOR SERIAL FILING [Doc. No. 14] JEFF BOHM, Chief Judge. I. INTRODUCTION On February 4, 2013, Triumph Christian Center, Inc. (the Debtor) filed the instant Chapter 11 case. [Doc. No. 1]. The Debtor had previously been a debtor in a Chapter 11 case filed on December 7, 2010 [Case No. 10-41239, Doc. No. 1], and had obtained confirmation of its plan of reorganization in that case on August 23, 2011. [Case No....
MEMORANDUM OPINION MARVIN ISGUR, Bankruptcy Judge. The Court must determine whether W. Steve Smith must be removed as the chapter 7 trustee in this case. Because the Court has determined that there is not clear and convincing evidence 1 that Smith breached his fiduciary duty to the Estate, the Court will not order his removal. When Smith determined that the Estate should retain counsel, he sought to retain a law firm in which he is a partner. After the Court questioned whether his own law...
MEMORANDUM OPINION ON NONDISCHARGEABILITY OF DEBTS PURSUANT TO 523(a)(4) and 523(a)(6) [relates to Adv. No. 10-03583, Doc. No. 41; Adv. No. 10-03584, Doc. No. 51; Adv. No. 10-03585, Doc. No. 58] JEFF BOHM, Chief Judge. I. INTRODUCTION These adversary proceedings, which were tried simultaneously, concern the existence of certain debts pursuant to Texas state law, and the nondischargeability of these debts under the "larceny" and "embezzlement" exceptions of section 523(a)(4) of the...
MEMORANDUM OPINION REGARDING: (1) GDHI'S MOTION FOR SUMMARY JUDGMENT: AND (2) THE TRUSTEE'S MOTION FOR PARTIAL SUMMARY JUDGMENT JEFF BOHM, Chief Judge. I. INTRODUCTION This dispute underscores the importance of careful legal drafting and attention to jurisdictional issues, and that is the reason the Court chooses to write this Memorandum Opinion. In the suit at bar, the debtors, Great Gulfcan Energy Texas, Inc., Seiran Exploration and Production Company, LLC, and Great Gulfcan H198L,...
MEMORANDUM OPINION REGARDING: (1) ORDER REQUIRING YOUSIF AYESH DAVID AND JIM L. CULPEPPER TO APPEAR AND SHOW CAUSE; AND (2) ORDER REQUIRING THE DEBTOR TO APPEAR AND SHOW CAUSE WHY HE SHOULD NOT BE SANCTIONED FOR: (1) USING TWO DIFFERENT SOCIAL SECURITY NUMBERS IN FILING TAX RETURNS; AND (2) USING HIS BROTHER'S SOCIAL SECURITY NUMBER AND HIS BROTHER'S NAME IN FILING THE CHAPTER 13 PETITION INITIATING THE CHAPTER 13 CASE PRESENTLY PENDING BEFORE THIS COURT [Doc. Nos. 244 & 261] JEFF BOHM,...
MEMORANDUM OPINION REGARDING PLAINTIFF'S MOTION FOR PARTIAL SUMMARY JUDGMENT AND TRUSTEE'S COUNTER-MOTION FOR SUMMARY JUDGMENT [Adv. Doc. Nos. 45 & 52] JEFF BOHM, Chief Judge. I. INTRODUCTION In the instant adversary proceeding, Plaintiff John Quinlan (Quinlan) seeks the return of $1.0 million, which he placed into an escrow account (the Escrow Account) "on behalf of" Debtor AFI Services, LLC (the Debtor) after entering into a contractual agreement with the Debtor. Quinlan has filed a...
MEMORANDUM OPINION MARVIN ISGUR, Bankruptcy Judge. Edward Talone Trust No. 1's Claim #22 is disallowed in its entirety. Edward Talone's Claim #23 is disallowed in its entirety. As set forth in more detail below, the claims are disallowed because they seek compensation for engineering services performed by unlicensed persons in violation of the Texas Engineering Practices Act. Introduction This Memorandum Opinion concerns a dispute between Anloc, LLC (the Debtor) and Edward R. Talone (...
MEMORANDUM OPINION ON ORDER REQUIRING CALVIN BRAUN TO APPEAR AND SHOW CAUSE WHY HE SHOULD NOT BE SANCTIONED FOR CONDUCT DESCRIBED HEREIN WITH RESPECT TO THE FILING OF THE ORIGINAL CHAPTER 11 PETITION, THE INITIAL SCHEDULES, AND THE STATEMENT OF FINANCIAL AFFAIRS JEFF BOHM, Chief Judge. I. INTRODUCTION The Court writes this Memorandum Opinion to emphasize the unwavering importance of ethical conduct in the practice of law, particularly regarding the filing of documents with the court. As one...
