MEMORANDUM DECISION ON MOTION FOR VIOLATION OF DISCHARGE INJUNCTION DENNIS MONTALI , Bankruptcy Judge . I. INTRODUCTION Before the court is the motion of Yevgeny Shvartsman and Natalia Shvartsman ("Debtors") against the Internal Revenue Service ("IRS") for violation of the discharge injunction of section 524(a)(2) 1 . Whether that section is applicable is questionable, because the Debtors' property that is the subject of this dispute remains property of the estate, suggesting that the...
MEMORANDUM DECISION HANNAH L. BLUMENSTIEL , Bankruptcy Judge . This case came before the court on August 1, 2017 for trial on an objection to confirmation filed by creditors LaRiviere Grubman & Payne LLP ("LGP") and Mr. F. David LaRiviere (Dkt. 12, the "Objection"). Prior to trial, the court limited the issues to be tried to those grounded in sections 1325(a)(3) and (a)(7) 1 namely, whether the joint debtors: (1) proposed their plan in good faith and not by any means forbidden by law; and...
MEMORANDUM SETTING STATUS CONFERENCE ON MOTION TO APPOINT CHAPTER 11 TRUSTEE WILLIAM J. LAFFERTY, III , Bankruptcy Judge . On December 26, the City of Eureka filed in this case a Motion to Appoint Chapter 11 Trustee (the "Motion") (Docket No. 56) and voluminous documents in support thereof (Docket Nos. 57-64). The Motion is currently set for hearing on February 1, 2018 at 9:00 a.m., the regular (February) monthly hearing date for all matters originating in McKinleyville. Mindful of the...
MEMORANDUM DECISION ON MOTION TO DISMISS DENNIS MONTALI , Bankruptcy Judge . I. INTRODUCTION On December 4, 2017, the court issued its memorandum decision granting partial summary judgment ("PSJ") in favor of plaintiff, Qualcomm. 1 On September 29, 2017, North Water moved to dismiss the Complaint (the "Motion") (Dkt. No. 6). Qualcomm opposed the Motion. For the reasons stated below, the court will grant the Motion in part with leave to amend, grant it in part without leave to amend,...
MEMORANDUM REGARDING REVISED CASH COLLATERAL BUDGET WILLIAM J. LAFFERTY, III , Bankruptcy Judge . On December 15, 2017, Debtor filed a Revised Cash Collateral Budget ("the Budget") (doc. 48). It is difficult for the Court to evaluate a budget that contains only expense items and no information concerning income or revenue. Debtor is directed to supplement the Budget with revenue/income information. The supplement should be filed with the Court on or before the end of business on December...
ORDER AWARDING FEES UNDER BANKRUPTCY CODE 523(d) CHARLES NOVACK , Bankruptcy Judge . On December 11, 2017, this court conducted a hearing on defendant Gerald Verbeck's application for fees under Bankruptcy Code 523(d) and pursuant to the parties' Marital Settlement Agreement (the "MSA"). All appearances were noted on the record. Gerald Verbeck's request for fees follows this court's November 2, 2017 memorandum decision which found that plaintiff Christina Verbeck (the defendant's...
MEMORANDUM REGARDING NOTICE OF MOTION TO USE CASH COLLATERAL WILLIAM J. LAFFERTY, III , Bankruptcy Judge . On November 30, 2017, Debtor filed a Motion to Use Cash Collateral (doc. 20). On the same day, Debtor filed a Notice of Hearing (Preliminary) on Motion ("the Notice") (doc. 21) for a hearing set on December 8, 2017 at 10:00 a.m. It does not appear to the Court that the twenty largest unsecured creditors were given notice of the hearing pursuant to Federal Rule of Bankruptcy...
AMENDED MEMORANDUM REGARDING NOTICE OF MOTION TO USE CASH WILLIAM J. LAFFERTY, III , Bankruptcy Judge . On November 30, 2017, Debtor filed a Motion to Use Cash Collateral (doc. 20). On the same day, Debtor filed a Notice of Hearing (Preliminary) on Motion ("the Notice") (doc. 21) for a hearing set on December 8, 2017 at 10:00 a.m. It does not appear to the Court that the twenty largest unsecured creditors were given notice of the hearing pursuant to Federal Rule of Bankruptcy Procedure...
MEMORANDUM DECISION ON MOTION FOR PARTIAL SUMMARY JUDGMENT DENNIS MONTALI , Bankruptcy Judge . I. INTRODUCTION By an order entered in the underlying chapter 7 case on March 1, 2017 (Dkt. No. 409), Qualcomm Incorporated ("Qualcomm") was given authority under 503(b)(3)(B) 1 to object to certain claims in this case and to seek affirmative relief. Qualcomm filed a complaint ("Complaint") initiating this adversary proceeding on August 28, 2017. The Complaint alleges sixteen claims for...
MEMORANDUM DECISION ON TRUSTEE'S MOTION FOR AWARD OF ATTORNEYS' FEES, COSTS, AND PENALTY PURSUANT TO ILLINOIS INSURANCE CODE 215 ILCS 5/155 Roger L. Efremsky , U.S. Bankruptcy Judge . I. Introduction Before the Court is the motion of Barry A. Chatz, the trustee of the CFB/WFB Liquidating Trust (the "Trustee" and the "Trust") for an award of fees, costs, interest, and penalty to be assessed against Continental Casualty Company ("Continental") under Illinois Insurance Code 215 ILCS 5/155...
MEMORANDUM REGARDING RELIEF FROM STAY HEARING WILLIAM J. LAFFERTY, III , Bankruptcy Judge . On October 25, 2017, Creditor Vrinderpaul Mann filed a Motion for Relief from Stay ("the Motion") (doc. 14). A hearing will be held on the Motion on November 8, 2017 at 9:30 a.m. The Court would like a representative from the Chapter 13 Trustee's office to appear either in person or telephonically at the hearing.
ORDER RE: NONDISCHARGEABILITY OF MSA OBLIGATION CHARLES NOVACK , Bankruptcy Judge . On October 17, 2017, this court conducted a trial in the above adversary proceeding. All appearances were noted on the record. Plaintiff Christina Verbeck and debtor and defendant Gerald Verbeck ("Verbeck") are former spouses, who separated in 2010 and divorced in 2014. As part of their dissolution, the Verbecks signed a Marital Settlement Agreement which contained an indemnification clause. Christina...
MEMORANDUM DECISION REGARDING APPORTIONED ATTORNEY'S FEES AND COSTS DENNIS MONTALI , U.S. Bankruptcy Judge . I. INTRODUCTION Before the court is the issue of apportioning compensable (uncapped) and non-compensable (capped) attorney's fees and costs stemming from a breach of contract dispute. For the following reasons, the court will fix the uncapped fees and costs in the amount of $170,436.40, leaving capped, and therefore disallowed under section 502(b)(6) 1 , fees and costs totaling $23,...
MEMORANDUM REGARDING EMPLOYMENT APPLICATION HEARING WILLIAM J. LAFFERTY, III , Bankruptcy Judge . On September 29, 2017, the Court entered a Notice of Hearing (doc. 578) setting a hearing to discuss the Trustee's Application to Employ Diamond McCarthy ("the Application") (doc. 575). The following will be discussed at the hearing. From Trustee's counsel, the Court would like to know the amount, if any, of fees already expended in the case analyzing the potential litigation that is the...
MEMORANDUM REGARDING JUDGMENT WILLIAM J. LAFFERTY, III , Bankruptcy Judge . On June 30, 2017, the Court entered an Order Granting Motion to Dismiss First Amended Complaint ("the Order") (doc. 30) in the above-captioned adversary proceeding. On July 5, 2017, Defendant Wells Fargo (the prevailing party) filed a Proposed Document: Judgment of Dismissal ("the Judgment") (doc. 31). The Judgment was placed on the docket, but Defendant did not take any further steps to notify the Court of the...
MEMORANDUM DECISION REGARDING TRUSTEE'S OBJECTION TO AMENDED CLAIM OF DIAN HARRISON DENNIS MONTALI , U.S. Bankruptcy Judge . On August 11, 2011, Dian Harrison ("Claimant") filed a proof of claim (Claim 82-1) ("Original Claim") for a lump sum of $205,500 for severance benefits pursuant to a written agreement dated January 1, 2000 with debtor Golden Gate Community Health ("GGCH" or "Debtor"). See Claim 82-1 at 1:24-26. Citing a subsequent written agreement dated August 11, 2006, she also...
MEMORANDUM REGARDING MOTION TO WITHDRAW AS ATTORNEY WILLIAM J. LAFFERTY, III , Bankruptcy Judge . On September 6, 2017, attorney for Debtor filed a Motion to Withdraw as Attorney ("the Motion") (doc. 34). The Motion was heard on September 14, 2017. At the hearing, the Court was left with the impression that counsel had served the Motion on his client, and nonetheless his client opted not to appear. The Motion was granted under that necessary assumption. Upon review of the certificate of...
MEMORANDUM DECISION DENYING CONTINENTAL CASUALTY COMPANY'S MOTION FOR LEAVE TO REFILE STATE COURT COMPLAINT NAMING THE TRUSTEE AS DEFENDANT Roger L. Efremsky , U.S. Bankruptcy Judge . I. ntroduction On May 8, 2017, Continental Casualty Company ("Continental") filed a complaint in state court in Illinois naming Barry A. Chatz, the court appointed liquidating trustee for the CFB/WFB Liquidating Trust (the "Trustee" and the "Trust") as the defendant. The complaint sought declaratory relief...
MEMORANDUM RE: MOTION TO SHORTEN TIME WILLIAM J. LAFFERTY, III , Bankruptcy Judge . On August 4, 2017, Debtors, by and through their attorney of record Lucas Garcia, filed the above-captioned case. On August 23, 2017, Debtors filed the First Motion to Shorten Time On Motion to Extend Automatic Stay (doc. 11) (the "OST Request"). The Court has considered the OST Request and is disinclined to hold a hearing on shortened time due to the following deficiencies: 1. Debtors failed to comply...
MEMORANDUM DECISION GRANTING SUMMARY JUDGMENT IN PART AND DENYING SUMMARY JUDGMENT IN PART Charles Novack , U.S. Bankruptcy Judge . On July 28, 2017, this court conducted a hearing on respondents' summary judgment motion in these consolidated contested matters. 1 Parker asserts that BCOA's post-petition and post-discharge HOA fines, assessments, rent collection and annexations regarding her condominium unit violated the automatic stay and the discharge injunction imposed by her Chapter 13...
