FINDINGS OF FACT AND CONCLUSIONS OF LAW ON COUNTS 1 & 3-21 Michael G. Williamson , United States Bankruptcy Judge . Tom Leiter solicited $2.5 million in investments —$1.1 million of which came from the Plaintiffs—for a condominium project developed by Palm Avenue Partners. Leiter then arranged for Palm Avenue Partners, which he incorporated and managed, to use the $2.5 million in investments to pay a company he owned $1 million for serving as a straw man in the transaction to acquire the...
FINDINGS OF FACT AND CONCLUSIONS OF LAW Jerry A. Funk , United States Bankruptcy Judge . This case came before the Court for trial upon the Debtors' Amended Motion for Sanctions against Seterus Inc. 1 (the "Amended Motion for Sanctions"). (Doc. 61). The Court conducted a trial on the Amended Motion for Sanctions on June 10, 2019 and directed the parties to submit post-trial memoranda. Upon the evidence and applicable law, the Court makes the following Findings of Fact and Conclusions...
MEMORANDUM OPINION CYNTHIA C. JACKSON , Bankruptcy Judge . This proceeding came before the Court upon the Debtor's complaint to determine that her student loan debt is dischargeable under 11 U.S.C. 523(a)(8) because it would impose an undue hardship. The Court has considered the evidence and the arguments of the parties and for the reasons set forth below, the Court will grant judgment in favor of the United States Department of Education (the "Defendant"). Facts The Debtor is a...
FINDINGS OF FACT AND CONCLUSIONS OF LAW JERRY A. FUNK , Bankruptcy Judge . This case came before the Court for trial on November 15, 2018, and July 17, 2019. In lieu of oral argument, the Court directed the parties to submit memoranda in support of their respective positions. Upon the evidence and the applicable law, the Court makes the following Findings of Fact and Conclusions of Law. Findings of Fact On April 13, 2015, the Debtor filed a petition under Chapter 13 of the Bankruptcy...
ORDERED. MEMORANDUM OPINION KAREN S. JENNEMANN , Bankruptcy Judge . The primary issue is who breached a construction contract and what are the damages in this dispute between a general contractor, Plaintiff Kellogg & Kimsey, Inc. ("K&K"), and its plumbing subcontractor, the Debtor Progressive Plumbing, Inc. ("Progressive"). After a five day trial, 1 at least two failed attempts at mediation, reviewing hundreds of exhibits, and reading 19 deposition transcripts, I conclude that both K&...
ORDER AND MEMORANDUM OPINION DENYING PLAINTIFF'S MOTION FOR RECONSIDERATION Michael G. Williamson , Chief United States Bankruptcy Judge . If what transpired here wasn't so unfortunate, this case would be a comedy of errors. Start with the fact that the Debtor's ex-husband and his lawyers didn't realize the Debtor was able to discharge her marital debt obligations in this chapter 13 case, leading the Debtor's ex-husband to violate the automatic stay by trying to set off $30,000 of the...
FINDINGS OF FACT AND CONCLUSIONS OF LAW JERRY A. FUNK , Bankruptcy Judge . This adversary proceeding came before the Court upon the complaint filed by Plaintiff-Debtors JONATHAN PUTNEY and JERI PUTNEY ("Debtors"), which seeks to determine the secured status of the claim held by Defendant-Creditor RHODES CAPITAL LLC ("Rhodes Capital") and to "strip off" Rhodes Capital's mortgage lien. Upon a review of the evidence and applicable law, the Court makes the following Findings of Fact and...
FINDING OF FACTS AND CONCLUSIONS OF LAW IN CONNECTION WITH THE UNITED STATES TRUSTEE'S MOTION FOR SANCTIONS AGAINST RAY C. HILL JERRY A. FUNK , Bankruptcy Judge . THIS CASE came before the court for evidentiary hearing on August 21, 2019 upon the United States Trustee's Motion for Examination of Fees Under 11 U.S.C. 329(b) and Sanctions Under Local Rule 2090-2 and the Court's Inherent Power (the "Motion for Sanctions;" Doc. No. 33) against bankruptcy attorney Ray C. Hill. At the...
MEMORANDUM OPINION GRANTING PLAINTIFF'S MOTION FOR DEFAULT FINAL JUDGMENT KAREN S. JENNEMANN , Bankruptcy Judge . This matter comes before the Court on the Plaintiff's Motion for Default Final Judgment and affidavit in support of Default Final Judgment (D.E. No. 9). A hearing was held on the Motion for Default June 18, 2019 (hereinafter, the "Hearing"). Appearing at the Hearing was Kevin P. Ackerman, Esq., attorney for the Plaintiff. No one appeared on behalf of the Defendant. This...
MEMORANDUM OPINION AND ORDER ON MOTION TO DISQUALIFY STEVEN M. BERMAN, ESQUIRE AND SHUMAKER, LOOP & KENDRICK, LLP AS COUNSEL TO THE CHAPTER 7 TRUSTEE NUNC PRO TUNC AND FOR DISGORGEMENT OF COMPENSATION Michael G. Williamson , Chief United States Bankruptcy Judge . THIS CASE came before the Court without a hearing to consider the Probate Estates' Motion to Disqualify Steven M. Berman, Esquire and Shumaker, Loop & Kendrick, LLP as Counsel to the Chapter 7 Trustee Nunc Pro Tunc and for...
MEMORANDUM OPINION AND ORDER ON REMAND FROM APPEAL OF ORDER GRANTING TRUSTEE'S VERIFIED MOTION TO APPROVE COMPROMISE OF CONTROVERSY WITH TROUTMAN SANDERS LLP MICHAEL G. WILLIAMSON , Chief Bankruptcy Judge . THIS CASE came before the Court without a hearing to consider the District Court's Order dated May 30, 2019. 1 In the Order, the District Court remanded the Trustee's Verified Motion to Approve Compromise of Controversy with Troutman Sanders LLP to this Court "to determine whether the...
MEMORANDUM OPINION AND ORDER ON EMERGENCY MOTION OF SEA FORCE IX, INC. FOR ADEQUATE PROTECTION Michael G. Williamson , Chief United States Bankruptcy Judge . THIS CASE came before the Court for hearing on June 12, 2019, to consider the Emergency Motion of Sea Force IX, Inc. ("Sea Force") for Adequate Protection. 1 Sea Force's Motion was filed in response to the Debtor's Emergency Motion for Turnover of Property of the Estate. 2 The Motions relate to certain boat molds that were owned by...
MEMORANDUM OPINION DISMISSING CASE, OVERRULING DEBTOR'S OBJECTION TO U.S. BANK'S CLAIM 6-1, GRANTING STAY RELIEF AND ENTERING FINAL JUDGMENT IN ADVERSARY PROCEEDING 17-68 KAREN S. JENNEMANN , Bankruptcy Judge . Debtor Julie Zalloum, helped by her husband, a related trust, 1 and perhaps an attorney who ghost writes their pleadings, has made a mockery of judicial system for years by taking actions calculated to (and, in fact, have) frustrated the claims of legitimate secured creditors who...
FINDINGS OF FACT AND CONCLUSIONS OF LAW JERRY A. FUNK , Bankruptcy Judge . This case came before the Court upon the following motions filed by Harvey Schonbrun, Trustee ("Schonbrun"): 1) Motion to Dismiss Case as a Bad Faith Filing (Doc. 10); 2) Verified Motion for Relief from the Automatic stay to Survive any Future Bankruptcy Filings (Doc. 11); and 3) Verified Motion for Relief from the Co-Debtor Stay (Doc. 12). The Court conducted a trial on the Motions on June 4, 2019 and elected to...
FINDINGS OF FACT AND CONCLUSIONS OF LAW CYNTHIA C. JACKSON , Bankruptcy Judge . This adversary proceeding came on for trial on April 3, 2019 to consider the complaint filed by Plaintiff, Bunkers International Corp. ("Bunkers" or the "Debtor"), seeking to avoid and recover pursuant to Sections 547 and 550 of the United States Bankruptcy Code certain preferential transfers made to or for the benefit of the Defendant, Orion Holdings Limited ("Orion" or the "Defendant"). The Defendant did not...
ORDER AND MEMORANDUM OPINION ON PROBATE ESTATES' MOTION FOR RECUSAL Michael G. Williamson , Chief United States Bankruptcy Judge . THIS CASE came before the Court without a hearing to consider the Probate Estates' Motion for Recusal (the Recusal Motion); Shumaker, Loop & Kendrick, LLP and Steven M. Berman, Esquire's (together, Shumaker's) Opposition to the Recusal Motion; and the Probate Estates' Reply to Shumaker's Opposition. 1 In the Recusal Motion, the Probate Estates seek the...
MEMORANDUM OPINION AWARDING ATTORNEYS' FEES AND COSTS KAREN S. JENNEMANN , Bankruptcy Judge . In this construction dispute between a plumbing sub-contractor, the Debtor Progressive Plumbing ("Progressive"), and a general contractor, Kast Construction III, LLC ("Kast"), I already have determined Kast owes Progressive $240,124. 1 The only remaining issue is whether Progressive may recover its attorneys' fees and costs 2 from Kast, who objects. 3 The Court awards reduced attorneys' fees...
CONSOLIDATED FINDINGS OF FACT AND CONCLUSIONS OF LAW Caryl E. Delano , United States Bankruptcy Judge . THIS MATTER came before the Court for trial on June 5, September 11-12, and October 15, 2018, in these consolidated adversary proceedings (the "Proceedings"). 1 Plaintiffs in Adv. Pro. No. 9:14-ap-402-FMD (the "56.29 Proceeding") are Regions Bank, N.A. ("Regions") and Robert E. Tardif, Jr. (the "Trustee"), the Chapter 7 trustee for the bankruptcy estate of William P. McCuan ("...
MEMORANDUM OPINION — STUDENT LOANS ARE NOT DISCHARGED KAREN S. JENNEMANN , Bankruptcy Judge . Plaintiff and Debtor, Cheryl Beece, seeks a hardship discharge of her student loans held by the Department of Education and Education Credit Management Corporation ("ECMC") (collectively, the "Defendants"). 1 Debtor owes about $192,000 2 and claims repayment would cause her an undue hardship. After considering the evidence 3 and the positions of the interested parties, the Court finds the...
MEMORANDUM OPINION DENYING THE DEBTOR'S DISCHARGE AND RESOLVING TRIAL MATTERS Karen S. Jennemann , United States Bankruptcy Judge . After a two-day trial, 1 the Court is convinced that the Debtor, Catherine Bentley, although elderly, filed this bankruptcy case to avoid the consequences of her intentionally fraudulent actions in concealing and later selling a valuable antique car, ignoring a court order to turn over the car, and improperly pocketing the proceeds rather than giving the...
