ORDER GRANTING RACHMALE'S MOTION TO REMAND TO STATE COURT AND DENYING DEFENDANTS' MOTION TO TRANSFER TO THE UNITED STATES BANKRUPTCY COURT IN DELAWARE MARK A. RANDON, Bankruptcy Judge. I. INTRODUCTION Avinash Rachmale founded and grew Lakeshore TolTest Corporation ("LTC") — in Michigan — into an award-winning, global construction and environmental services company with a book of business valued in the hundreds of millions. He was once the majority shareholder and proudly served as LTC's...
OPINION AWARDING PRE-CONFIRMATION ATTORNEY FEE AND REIMBURSEMENT OF COSTS PHILLIP J. SHEFFERLY, Bankruptcy Judge. Introduction This opinion addresses a pre-confirmation fee application filed by a debtor's attorney in a Chapter 13 case. The Chapter 13 trustee objected. For the reasons explained in this opinion, the Court sustains the Trustee's objections in part, and awards a fee of $5,375.00 and reimbursement of $483.64 of costs, for a total of $5,858.64. Jurisdiction The Court has...
OPINION DENYING DEFENDANTS DIMITRIOS ("JIM") PAPAS, VIOLA PAPAS, TED GATZAROS, AND MARIA GATZAROS' MOTION FOR SUMMARY JUDGMENT (DKT. 187) WALTER SHAPERO, Bankruptcy Judge. INTRODUCTION Plaintiff, as Litigation Trustee, seeks to avoid transfers made by a debtor corporation to Defendants, arguing that the transfers were fraudulent transfers under applicable Michigan law. Defendants moved for summary judgment on the basis that Plaintiff's action is an "impermissible collateral attack" on the...
TRIAL OPINION THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction In this adversary proceeding, Plaintiff Pamela M. Doyle ("Doyle") seeks a judgment against the Chapter 7 debtor Stephanie M. Howie-Cox ("Howie-Cox"), for $133,961.61 plus costs, interest, and attorney fees, and seeks a determination that this debt is nondischargeable in Howie-Cox's Chapter 7 case, under 11 U.S.C. 523(a)(2)(A), 523(a)(4) and 523(a)(6). In addition, Doyle seeks a denial of Howie-Cox's discharge under 11 U.S.C....
OPINION REGARDING PLAINTIFF'S MOTION TO DISQUALIFY DEFENDANTS' COUNSEL IN THIS ADVERSARY PROCEEDING THOMAS J. TUCKER, Bankruptcy Judge. This adversary proceeding is before the Court on the motion filed by the Plaintiff, Gene R. Kohut, Trustee, seeking the disqualification of the Defendants' counsel, Osipov Bigelman, P.C. ("Osipov Bigelman") and all the attorneys in that firm (Docket # 17, the "Disqualification Motion" or "Motion"). Osipov Bigelman filed a response objecting to the Motion,...
OPINION REGARDING DISMISSAL OF THIRD-PARTY COMPLAINT FOR LACK OF SUBJECT MATTER JURISDICTION THOMAS J. TUCKER, Bankruptcy Judge. This opinion explains why the Court must dismiss the third-party claims filed by the Defendants in this adversary proceeding, for lack of subject matter jurisdiction. I. Background A. The Chapter 7 Trustee's adversary complaint In this adversary proceeding, the Plaintiff Timothy R. Miller, who is the trustee in the Chapter 7 bankruptcy case of Bruemmer...
OPINION AND ORDER DENYING DEFENDANT'S MOTION FOR RECONSIDERATION THOMAS J. TUCKER, Bankruptcy Judge. This adversary proceeding is before the Court on the Defendant's motion entitled "Motion for Relief of Order and to Set Aside Order Granting Motion for Summary Judgment," filed February 26, 2014 (Docket # 33, the "Motion"), which the Court construes as a motion for reconsideration of, and for relief from, the February 12, 2014 Order granting summary judgment for Plaintiff and denying Defendant'...
OPINION REGARDING THE UNITED STATES TRUSTEE'S MOTION FOR REFUND OF DEBTOR COUNSEL'S ATTORNEY FEE THOMAS J. TUCKER, Bankruptcy Judge. This case came before the Court for a hearing on the motion filed by the United States Trustee, entitled "Motion for an Order Requiring Debtors' Attorneys to Return Payment to Debtor Pursuant to 329" (Docket # 20, the "Motion"). For the reasons stated in this opinion, the Motion will be granted. I. Background and facts The material facts regarding the...
OPINION AND ORDER TO SHOW CAUSE WHY THE COURT SHOULD NOT DENY CONFIRMATION OF DEBTOR'S FIRST AMENDED PLAN (DOCKET # 112) AND DISMISS OR CONVERT THIS CASE TO CHAPTER 7 THOMAS J. TUCKER, Bankruptcy Judge. This Chapter 11 case is before the Court on the Debtor's first amended combined plan and disclosure statement, filed January 29, 2014 (Docket # 112, the "First Amended Plan"). The Court declines to grant preliminary approval of the Debtor's disclosure statement, because the First Amended Plan...
TRIAL OPINION THOMAS J. TUCKER, Bankruptcy Judge. I. Introduction In this adversary proceeding, Plaintiff Joyce McCallum seeks a determination that Defendant Debtor Steven Pixley's judgment debt to McCallum is non-dischargeable under 11 U.S.C. 523(a)(2)(A) for fraud, and under 11 U.S.C. 523(a)(6) for "willful and malicious injury." Eighteen months before Pixley filed his Chapter 7 bankruptcy petition, McCallum obtained a default judgment against Pixley in the Tuscola County, Michigan...
Supplemental Opinion Regarding Plan Confirmation, Approving Settlements, and Approving Exit Financing STEVEN W. RHODES , Bankruptcy Judge . Table of Contents I. INTRODUCTION .....................................................................159 II. THE PLAN CONFIRMATION PROCESS ....................................................161 A. The City's Plans of Adjustment ...............................................161 B. An Overview of the City's Eighth Amended Plan of Adjustment ......
ORDER: (1) GRANTING IN PART AND DENYING IN PART JOHN RICHARDS HOMES BUILDING CO., LLC'S MOTION FOR AN ADDITIONAL AWARD OF ATTORNEY FEES AND COSTS AND FOR AN AWARD OF PREJUDGMENT INTEREST (DKT. NO. 1278); AND, (2) DENYING JOHN RICHARDS HOMES BUILDING CO., LLC'S MOTION TO REINSTATE THE 2011 PUNITIVE DAMAGES AWARD OR, IN THE ALTERNATIVE, REFER THE PUNITIVE DAMAGES REQUEST TO THE DISTRICT COURT (DKT. NO. 1283) MARK A. RANDON , Bankruptcy Judge . I. INTRODUCTION More than twelve years have...
PHILLIP J. SHEFFERLY , Bankruptcy Judge . OPINION GRANTING MOTION TO REMAND INTRODUCTION Leslie Etterbeek ("Etterbeek") is a member in a limited liability company. Etterbeek filed a lawsuit in state court against five other members of the limited liability company and two individuals related to two of those members. The defendants removed the lawsuit to the bankruptcy court. Etterbeek filed a motion to remand the lawsuit back to state court or for the Court to abstain from hearing it....
OPINION REGARDING SUMMARY JUDGMENT MOTIONS THOMAS J. TUCKER , Bankruptcy Judge . I. Introduction These consolidated adversary proceedings are before the Court on three motions for summary judgment, namely, (1) the Chapter 7 Trustee's motion for summary judgment entitled "Trustee's Motion for Summary Judgment as to Counts II and III of the Trustee's Complaint in Adversary No. 10-06123 and Counts II, III, and IX in Trustee's Cross Claim in Adversary No. 10-07341" (Docket # 104 in Adv. No....
OPINION DENYING CONFIRMATION OF CHAPTER 13 PLAN PHILLIP J. SHEFFERLY , Bankruptcy Judge . Introduction This matter is before the Court upon the Debtor's request for confirmation of his Chapter 13 plan and on the objections to the plan filed by his former spouse, Shelley B. Soleimani ("Soleimani"). Soleimani objects to the Debtor's plan on four grounds. First, Soleimani argues that she is the holder of a domestic support obligation, which is required to be paid in full during the life...
Order Granting the City's Motion to Vacate the Appointment of the Official Committee of Unsecured Creditors STEVEN RHODES , Bankruptcy Judge . This matter is before the Court on the City of Detroit's Motion for Entry of an Order Vacating the Appointment of the Official Committee of Unsecured Creditors. (Dkt. # 2626) The United States Trustee filed an objection to the motion (Dkt. # 2688), as did the Committee itself. (Dkt. # 2687) The Court heard oral argument on the motion on February 19,...
OPINION SUSTAINING IN PART DEBTOR'S OBJECTION TO DANIEL PEPPER'S PROOF OF CLAIM PHILLIP J. SHEFFERLY, Bankruptcy Judge. Introduction This matter is before the Court on an objection filed by the Debtor, Associated Community Services, Inc., to a $10 million proof of claim filed by Daniel Pepper, which states that it is filed by Pepper "on behalf of himself and others similarly situated." For the reasons set forth in this opinion, the Court holds that: (i) the claim must be disallowed as a...
OPINION REGARDING THE DUFF & PHELPS SECURITIES, LLC ADMINISTRATIVE EXPENSE CLAIM AND REQUEST FOR PAYMENT THOMAS J. TUCKER, Bankruptcy Judge. These jointly administered cases are before the Court on an administrative expense claim filed by Duff & Phelps Securities, LLC ("Duff & Phelps"), entitled "Amended Notice of Administrative Expense Claim and Request for Payment," (Docket # 1320, the "Request"). The Official Committee of Unsecured Creditors (the "Committee") and the United States Trustee...
AMENDED OPINION GRANTING IN PART PLAINTIFFS' MOTION FOR SUMMARY JUDGMENT AND DENYING DEFENDANT'S CROSS-MOTION FOR PARTIAL SUMMARY JUDGMENT 1 PHILLIP J. SHEFFERLY, Bankruptcy Judge. Introduction This adversary proceeding arises out of an agreement for the purchase and sale of a business in the automotive industry. Although originally structured as a purchase of all of the seller's assets, the buyer did not have sufficient funds to close the deal. As a result, the parties changed the...
OPINION AND ORDER DENYING PLAINTIFF'S REQUEST FOR ISSUANCE OF REVISED WRIT OF EXECUTION THOMAS J. TUCKER, Bankruptcy Judge. This case presents the question whether a federal bankruptcy court may issue a writ of execution directing that a state court officer, rather than the United States Marshals Service, execute the writ. The Court concludes that the answer is no. I. Background On September 3, 2014, the Court entered a default judgment against the Defendant in this adversary proceeding (...
