NOT FOR PUBLICATION MEMORANDUM OF DECISION SUSTAINING IN PART AND OVERRULING IN PART U.S. TRUSTEE'S OBJECTION, GRANTING APPLICATION TO EMPLOY BERRY DUNN MCNEIL & PARKER, LLC NUNC PRO TUNC TO AUGUST 20, 2019, AND DIRECTING DEBTOR'S ATTORNEYS TO PAY ALLOWED GAP PERIOD COMPENSATION TO PROFESSIONAL COLLEEN A. BROWN , Bankruptcy Judge . The Debtor seeks to employ a financial advisor, to be paid by the bankruptcy estate, to assist it in its chapter 11 reorganization. The Debtor has...
MEMORANDUM OF DECISION GRANTING JUDGMENT IN FAVOR OF THE U.S. TRUSTEE AND AGAINST SHELDON M. KATZ COLLEEN A. BROWN , Bankruptcy Judge . In this adversary proceeding, the Court has before it a defendant who admits essentially all of the allegations against him in the complaint and requests the Court enter judgment against him, in the form of such sanctions as the Court deems appropriate in light of his conduct in the role of the Debtor's attorney. For the reasons stated below, the Court...
MEMORANDUM OF DECISION COLLEEN A. BROWN , Bankruptcy Judge . GRANTING IN PART, DENYING IN PART, AND STAYING IN PART THE U.S. TRUSTEE'S MOTION FOR DEFAULT JUDGMENT AGAINST THE SYNERGY DEFENDANTS This matter comes before the Court on the motion of the U.S. trustee ("UST") for default judgment (doc. # 19, the "Motion") on the complaint against defendants Synergy Law, LLC ("Synergy Law"), Synergy Attorney Services, LLC ("Synergy Services"), and Scott Marinelli, Dave Maresca, Monica Chapman,...
Not for Publication MEMORANDUM OF DECISION GRANTING U.S. TRUSTEE'S MOTION TO DISGORGE FEES AND IMPOSE TREBLE FINES, STAYING U.S. TRUSTEE'S MOTION FOR FURTHER EQUITABLE RELIEF, AND STAYING DEBTOR'S MOTION FOR SANCTIONS COLLEEN A. BROWN , Bankruptcy Judge . There are two motions before the Court: (1) the motion of the U.S. trustee ("UST") to compel disgorgement of fees and impose treble fines against Synergy Law, LLC ("Synergy Law") and its owner, Dave Maresca ("Mr. Maresca" and,...
MEMORANDUM OF DECISION CERTIFYING DECISION FOR DIRECT APPEAL UNDER 28 U.S.C. 158(d)(2) COLLEEN A. BROWN , Bankruptcy Judge . The chapter 13 trustee has filed a motion, pursuant to 28 U.S.C. 158(d)(2)(A), asking the Court to certify its recently issued Decision on Remand, imposing sanctions on mortgage servicer PHH Mortgage Corporation (doc. # 150), for direct appeal to the U.S. Court of Appeals for the Second Circuit. The movant argues this Decision satisfies the criteria for direct...
MEMORANDUM OF DECISION DENYING CREDITOR'S MOTION TO ENLARGE TIME AND DELAY ENTRY OF DISCHARGE COLLEEN A. BROWN , Bankruptcy Judge . In this contested matter, the Court weighs a creditor's plea for additional time to determine if it has grounds to seek either an exception of its debt from discharge or dismissal of this case, against the Debtor's right to a prompt discharge of his debts and a fresh start. The creditor, U.S. Sports Camps, Inc., engaged in state court litigation with the...
MEMORANDUM OF DECISION ON REMAND FROM U.S. DISTRICT COURT, IMPOSING SANCTIONS ON PHH MORTGAGE CORPORATION Colleen A. Brown , United States Bankruptcy Judge . The U.S. District Court remanded this matter for this Court to redetermine the amount of sanctions to be imposed on PHH Corporation ("PHH") for its violations of Bankruptcy Rule 3002.1 and Debtor Current Orders, with a focus on the scope of this Court's statutory and inherent authority to impose punitive sanctions. This Court has...
NOT FOR PUBLICATION ORDER COLLEEN A. BROWN , Bankruptcy Judge . DETERMINING VERMONT TO BE THE PROPER VENUE FOR THREE HERMITAGE CASES For the reasons set forth in the memorandum of decision of even date, IT IS HEREBY ORDERED that, pursuant to 28 U.S.C. 1412, Bankruptcy Rule 1014(b), and 11 U.S.C. 105, (i) the Petitioners' Motion to Change Venue (doc. # 28) is GRANTED, (ii) Heritage Inn Real Estate Holding Company, LLC's Motion to Transfer Case to Another District (doc. # 46), is...
MEMORANDUM OF DECISION DETERMINING VERMONT TO BE THE PROPER VENUE FOR THREE HERMITAGE CASES COLLEEN A. BROWN , Bankruptcy Judge . In this contested matter the Court must determine whether three pending bankruptcy cases, all related to the Hermitage Club in Wilmington, Vermont, should proceed in the Bankruptcy Court for the District of Vermont or in the Bankruptcy Court for the District of Connecticut. The Hermitage related debtors, which are incorporated in the state of Connecticut, wish...
MEMORANDUM OF DECISION GRANTING CHAPTER 12 TRUSTEE'S MOTION TO RECONSIDER, DETERMINING DEBTORS ARE NOT IN SUBSTANTIAL DEFAULT, AND VACATING DISMISSAL ORDER COLLEEN A. BROWN , Bankruptcy Judge . On January 14, 2019, the Court issued an order dismissing this chapter 12 case (doc. # 197, the "Dismissal Order"), based on the Notice of Substantial Default filed by Wells Fargo, pursuant to the conditional dismissal order the Court entered on July 13, 2018 (see doc. ## 194, 147, respectively)....
MEMORANDUM OF DECISION SUSTAINING THE CREDITOR'S OBJECTION AND DENYING DEBTOR'S MOTION TO EXTEND THE AUTOMATIC STAY UNDER 11 U.S.C. 362(C)(3) COLLEEN A. BROWN , Bankruptcy Judge . On August 21, 2018, the Debtor filed a petition to commence this chapter 7 case and, on August 23, 2018, he filed a motion to extend the automatic stay in this case, pursuant to 11 U.S.C. 363(c)(3) (doc # 8, hereafter, "the Motion"). 1 The Debtor filed the Motion because he filed this bankruptcy case...
MEMORANDUM OF DECISION OVERRULING THE CREDITOR'S OBJECTION AND GRANTING DEBTOR'S MOTION TO CONTINUE THE AUTOMATIC STAY, WITH CONDITIONS Colleen A. Brown , United States Bankruptcy Judge . Within one week of this Court entering a memorandum of decision and order determining the scope of the automatic stay applicable in a repeat filer's bankruptcy case, Robert Goodrich filed a motion to continue the automatic stay in this case (doc. # 40, the "Motion"), under 362(c)(3)(B) of the...
NOT FOR PUBLICATION MEMORANDUM OF DECISION FINDING THE COURT LACKS CONSTITUTIONAL AUTHORITY TO ENTER A FINAL JUDGMENT COLLEEN A. BROWN , Bankruptcy Judge . Plaintiff Patricia Wood commenced this adversary proceeding to challenge Defendant Upper Valley Commercial Corporation's right to enforce notes and mortgages, secured by Ms. Wood's Vermont property, on the basis that it had violated the Vermont Lender Licensing Act ("VLLA"), thereby rendering the notes void and unenforceable. Upper...
MEMORANDUM OF DECISION GRANTING MOTION FOR RECONSIDERATION OF THIS COURT'S INTERPRETATION OF 362(C)(3)(A), DENYING MOTION TO ADOPT LIMITED INTERPRETATION OF THAT STATUTE, AND DEFERRING DETERMINATION OF WHETHER STAY HAS EXPIRED IN THIS CASE Colleen A. Brown , United States Bankruptcy Judge . Jennifer Soutar, a creditor in this case, filed a motion asking the Court to reconsider and change its interpretation of the scope of property the automatic stay covers when a debtor files a...
MEMORANDUM OF DECISION GRANTING DEFENDANTS' MOTIONS FOR SUMMARY JUDGMENT AND DISMISSING COMPLAINT AGAINST UNNAMED DEFENDANTS COLLEEN A. BROWN , Bankruptcy Judge . Hermann VanEck commenced this adversary proceeding to challenge the foreclosure, summary process, and levying of execution against his Connecticut residence by DLJ Mortgage Capital, Inc. ("DLJ"). VanEck alleges that DLJ and its real estate listing agents, Mark Porriello and Louis Mira, violated the automatic stay provisions of...
MEMORANDUM OF DECISION DENYING DEBTORS' MOTION FOR A STAY PENDING APPEAL COLLEEN A. BROWN , Bankruptcy Judge . Before the Court is the Debtors' motion, pursuant to Bankruptcy Rule 8007, for a stay pending appeal (doc. # 59) of this Court's order finding a prepetition waiver to be enforceable (doc. # 41), order granting relief from stay to Wells Fargo Financial Leasing, Inc. ("Wells Fargo") (doc. # 42), and order granting relief from stay to Vermont Agricultural Credit Corporation ("VACC")...
MEMORANDUM OF DECISION DENYING TRUSTEE'S MOTION TO REOPEN CASE Colleen A. Brown , United States Bankruptcy Judge . The former chapter 7 trustee has filed a motion asking the Court to reopen the instant case, which was closed approximately seven years ago, so he can administer a previously undisclosed personal injury claim recovery, based on a defective medical device, in the estimated amount of $45,000. The trustee argues all the essential elements of the Debtor's causes of action...
MEMORANDUM OF DECISION SUSTAINING OBJECTION AND DENYING MOTION TO AVOID LIEN Colleen A. Brown , United States Bankruptcy Judge . The Debtor filed a motion to strip the lien of Geico Indemnity Company ("Geico"), asserting that Geico's lien impairs the Debtor's homestead exemption. Geico objected, contending the Debtor has not met his prima facie burden of proof and, in any event, may not strip Geico's lien because the Debtor did not own the real property in question when Geico's lien...
MEMORANDUM OF DECISION REJECTING THE DEBTORS' CLAIM THAT 329 IS UNCONSTITUTIONAL AND GRANTING, IN PART, THE U.S. TRUSTEE'S MOTION FOR DISGORGEMENT OF ATTORNEYS' FEES Colleen A. Brown , United States Bankruptcy Judge . The U.S. Trustee seeks disgorgement of all attorneys' fees paid in this case, based upon the excessiveness of the fees the Debtors' attorney received and that attorney's failure to comply with the disclosure requirements of the Bankruptcy Code and Rules. The attorney...
MEMORANDUM OF DECISION GRANTING MOTIONS TO DISMISS AND DENYING MOTION TO MODIFY COLLEEN A. BROWN , Bankruptcy Judge . Two secured creditors, People's United Bank and the USDA Farm Service Agency (together, the "Creditors") have filed motions to dismiss these jointly administered cases, based upon the Debtors' default in their obligations under a stipulation and their default under the terms of the confirmed Chapter 12 plan. The Debtors oppose dismissal and assert they should be given an...
