OPINION GRANTING DEFENDANTS' MOTION TO DISMISS PHILLIP J. SHEFFERLY, Bankruptcy Judge. Introduction The plaintiff in this adversary proceeding is the debtor in this Chapter 7 case. The plaintiff filed this adversary proceeding to set aside a foreclosure sale of his home and to obtain other relief. The defendants filed a motion to dismiss the adversary proceeding. For the reasons explained in this opinion, the Court grants the motion. Jurisdiction The Court has jurisdiction over this...
OPINION REGARDING UNITED STATES TRUSTEE'S MOTION FOR RELIEF UNDER SECTION 329 OF THE BANKRUPTCY CODE PHILLIP J. SHEFFERLY, Bankruptcy Judge. Introduction This opinion deals with a motion filed by the United States Trustee ("UST") under 329 of the Bankruptcy Code, seeking cancellation of an agreement to pay a fee to a Chapter 7 debtor's attorney and disgorgement of a fee paid to that attorney. This is a core proceeding under 28 U.S.C. 157(b)(2)(A), over which the Court has jurisdiction...
OPINION REGARDING LIQUIDATION TRUSTEE'S OBJECTION TO THE CLAIMS OF THE PEGASUS GROUP, AND BANKRUPTCY CODE 502(b)(6) THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction The dispute now before the Court concerns the meaning and scope of 502(b)(6) of the Bankruptcy Code, 11 U.S.C. 502(b)(6). That section sets a limit on "the claim of a lessor for damages resulting from the termination of a lease of real property." These two jointly-administered Chapter 11 cases are being administered...
OPINION REGARDING COMERICA BANK'S MOTION FOR ADEQUATE PROTECTION PAYMENTS FROM THE FUNDS HELD BY THE CHAPTER 13 TRUSTEE AND MOTION FOR ALLOWANCE OF ADMINISTRATIVE CLAIM THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction This Chapter 13 case did not result in a confirmed plan, but rather was dismissed. In this post-dismissal stage, the Court must resolve a dispute about real estate taxes on the Debtor's home, which were incurred after the case was filed but before the case was dismissed....
OPINION REGARDING CONFIRMATION OF DEBTORS' THIRD AMENDED PLAN THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction These jointly-administered cases came before the Court on October 17, 2012, for a hearing on confirmation of Debtors' Third Amended Plan (Docket # 71). During the hearing, the Court heard argument regarding the objections to confirmation of the Official Committee of Unsecured Creditors (the "Committee") and a group of unsecured creditors that the parties have referred to as the "...
OPINION REGARDING DEBTOR'S MOTION TO HOLD THE HONORABLE CYNTHIA GREY HATHAWAY [AND OTHERS] IN CONTEMPT FOR VIOLATION OF THE AUTOMATIC STAY THOMAS J. TUCKER,Bankruptcy Judge. I. Introduction This case came before the Court on October 3, 2012, for an expedited hearing on Debtor's motion entitled "Debtor's Motion to Hold the Honorable Cynthia Grey Hathaway, Lori A. Dawson, Cyril C. Hall, and Sunshine Oil Company, Inc. in Contempt for Violation of the Automatic Stay" (Docket # 17, the "Motion")....
OPINION GRANTING IN PART UNITED STATES TRUSTEE'S MOTION FOR RELIEF UNDER SECTION 329 OF THE BANKRUPTCY CODE PHILLIP J. SHEFFERLY, Bankruptcy Judge. Introduction This opinion deals with a motion filed by the United States Trustee ("UST") under 329 of the Bankruptcy Code, seeking disgorgement of a fee paid to a Chapter 7 debtor's attorney and cancellation of an agreement to pay a fee to the attorney. This is a core proceeding under 28 U.S.C. 157(b)(2)(A), over which the Court has...
OPINION REGARDING THE MOTIONS TO CONVERT THIS CASE TO CHAPTER 7, FILED BY THE UNITED STATES TRUSTEE AND BY CAL LAND INVESTMENTS, LLC THOMAS J. TUCKER, Bankruptcy Judge. This case came before the Court for a hearing on July 18, 2012, on two motions: (1) the United States Trustee's motion to convert this Chapter 11 case to Chapter 7 (Docket # 50); and (2) Cal Land Investment, LLC's motion to convert this Chapter 11 case to Chapter 7 (Docket # 51)(collectively the "Conversion Motions"). For the...
AMENDED OPINION 1 REGARDING THE APPLICATION OF COFACE AND MEDIOFACTORING FOR ALLOWANCE OF ADMINISTRATIVE EXPENSE THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction Section 503(b)(3)(D) of the Bankruptcy Code permits the Court to allow an administrative expense for a "creditor ... in making a substantial contribution in" a Chapter 9 or Chapter 11 case. This case raises the question whether the Court may allow an administrative expense for a creditor who has made a substantial contribution...
OPINION REGARDING THE ACCOUNTANT-CLIENT PRIVILEGE ASSERTED BY DEFENDANTS IN OPPOSING THE CHAPTER 7 TRUSTEE'S MOTION TO COMPEL THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction This opinion concerns Michigan's accountant-client privilege statute, Mich. Comp. Laws Ann. 339.732. The Plaintiff Chapter 7 Trustee seeks discovery of an accountant's work papers relating to a Defendant's 2008 tax returns, and correspondence between the Defendant and its accountant about those tax returns. The...
OPINION DETERMINING DEBT IS DISCHARGEABLE WALTER SHAPERO, Bankruptcy Judge. Becton, Dickinson and Company ("Plaintiff") brought this adversary proceeding against its former employee, Debtor Thomas A Sterling ("Defendant"), seeking a determination that a debt owed to it as a result of compensation overpayments is excepted from discharge under 11 U.S.C. 523(a)(2)(A), (a)(4), and (a)(6). A trial was held and for the reasons set forth below, the debt is found to be dischargeable. Facts...
OPINION REGARDING TRUSTEE'S OBJECTION TO DEBTORS' SECOND AMENDED CLAIMS OF EXEMPTION UNDER 11 U.S.C. 522(d)(1) THOMAS J. TUCKER, Bankruptcy Judge. At issue in this Chapter 7 case is whether the Debtors may claim an exemption in real property they own in Mancelona, Michigan under 11 U.S.C. 522(d)(1), as a residence. For the following reasons, the Court concludes that Debtors may not claim such an exemption. This dispute came before the Court for a hearing on June 20, 2012, on the "Trustee'...
TRIAL OPINION THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction The Defendant in this adversary proceeding, Liudmila Storozhenko, filed a Chapter 7 bankruptcy case. In this adversary proceeding, the Plaintiff Chapter 7 Trustee, K. Jin Lim, seeks a judgment denying Defendant Debtor's discharge, based on 11 U.S.C. 727(a)(2) (Count I of Plaintiff's Complaint); 727(a)(3)(Count II); and 727(a)(4)(A)(Count III). 1 The Court held a bench trial on April 3, 2012, then took the case under...
Opinion Regarding United States Trustee's Motion to Dismiss STEVEN RHODES, Bankruptcy Judge. The United States Trustee has filed a motion to dismiss for abuse under 11 U.S.C. 707(b). The United States Trustee contends that the debtor's expenses of $3,000.00 per month for rent and utility expenses and $1,000.00 per month for transportation expenses are excessive and that when these are adjusted to reasonable amounts, the debtor can repay his creditors a substantial dividend in a chapter 13...
AMENDED 2 OPINION REGARDING THE MAY 31, 2012 MOTIONS OF THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS (1) TO ADJOURN SOLICITATION OF VOTING ON THE DEBTORS' SECOND AMENDED PLAN OF LIQUIDATION, AND (2) TO TERMINATE THE DEBTORS' EXCLUSIVITY PERIOD UNDER SECTION 1121(D) OF THE BANKRUPTCY CODE THOMAS J. TUCKER, Bankruptcy Judge. These jointly-administered cases came before the Court for hearing on June 6, 2012, on several motions. The hearings included an expedited hearing on two motions filed...
OPINION REGARDING DAMAGES, AFTER ENTRY OF DEFAULT JUDGMENT AGAINST DEFENDANTS AS TO LIABILITY THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction and background This adversary proceeding is before the Court on the issue of damages. On March 19, 2012, the Court entered an Order granting a default judgment in favor of Plaintiff and against Defendants, as to liability (the "Default Order"). 1 In the Default Order, the Court entered a default judgment "with respect to liability, on the claim...
OPINION REGARDING SANCTION MOTIONS THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction This case is before the Court on (1) United Car Company, Inc.'s motion entitled "Motion for Sanctions Against Frego & Associates" (Docket # 21), and (2) the sanctions part of United Car Company, Inc.'s motion entitled "Motion of United Car Company, Inc. For Relief From the Automatic Stay, for Waiver of Provisions of Fed. R. Bankr.P. 4001(a)(3), and for Contempt Sanctions Against the Debtor and her Counsel"...
OPINION SUSTAINING TRUSTEE'S OBJECTION TO EXEMPTION PHILLIP J. SHEFFERLY, Bankruptcy Judge. INTRODUCTION The Debtors in this Chapter 7 case are husband and wife. The Debtor wife claimed an exemption in a 2008 Chevrolet Equinox. The Trustee objected to the exemption because the Equinox is titled to the Debtor husband, not to the Debtor wife. For the reasons explained in this opinion, the Court sustains the Trustee's objection and disallows the exemption. JURISDICTION This is a core...
OPINION (1) DENYING MOTION FOR ALLOWANCE AND PAYMENT OF ADMINISTRATIVE EXPENSE CLAIM; AND (2) ESTIMATING ADMINISTRATIVE EXPENSE CLAIM FOR PURPOSES OF CHAPTER 11 CONFIRMATION HEARING PHILLIP J. SHEFFERLY, Bankruptcy Judge. INTRODUCTION This is a Chapter 11 case. The Debtor is in the business of providing sprinkler design, installation and repair services for new construction and existing buildings. The Debtor filed a plan of reorganization. A labor union, Sprinkler Fitters' Local 704, filed...
OPINION REGARDING KFC NATIONAL COUNCIL AND ADVERTISING COOPERATIVE, INC.'S MOTION FOR ALLOWANCE AND PAYMENT OF ADMINISTRATIVE EXPENSE CLAIM (Jointly Administered) 1 THOMAS J. TUCKER, Bankruptcy Judge. These jointly-administered Chapter 11 cases came before the Court for an expedited hearing on February 28, 2012, on a motion filed on February 23, 2012 by the creditor, KFC National Council and Advertising Cooperative, Inc. ("NACA"), entitled "Motion for Allowance and Payment of...
