Church Joint Venture, L.P. V. Grusin (In re Blasingame)

(Sixth Circuit, Jan. 4, 2018)

The Sixth Circuit affirms the B.A.P.’s decision to reverse the bankruptcy court’s order for sanctions. The movant failed to satisfy the twenty-one day safe harbor in Rule 9011. Click here for the B.A.P. opinion. Opinion below.

Judge: Keith

Attorney for Appellant: Malone Akerly Martin, Bruce W. Akerly

Attorney for Appellee: Edward Michael Bearman, Gary E., Veazey

2018-01-04 – in re blasingame

Author: Matt Lindblom

Crop Production Services, Inc. v. Wheeler (In re Wheeler)

(Bankr. W.D. Ky. Dec. 22, 2017)

The bankruptcy court enters summary judgment in favor of the plaintiff, finding that its lien had priority over the other lender’s lien. The other lender had perfected its lien with a UCC-1 but years later accidentally filed a termination statement. The lender then filed another document noting that the termination was accidental, attempting to reinstate the perfected lien. The plaintiff filed its UCC-1 later. The court holds that UCC Article 9 controls, and the termination statement could not be amended or revoked in order to reinstate the original UCC-1. Thus, the plaintiff’s secured claim had priority over the other lender’s claim. Opinion below.

Judge: Fulton

Attorney for Plaintiff: David T. Reynolds

Attorneys for Defendants: Steve Vidmer; Robert B. Frazer, Roy Massey, IV

2017-12-22 – in re wheeler

Author: Matt Lindblom

Wheatley v. Johnson (In re Johnson)

(Bankr. W.D. Ky. Dec. 21, 2017)

The bankruptcy court enters judgment in favor of the trustee, finding a prepetition transfer from the debtor to her son was a fraudulent transfer under 11 U.S.C. §§ 547 and 548. The debtor had transferred her tax refund to her son for the purpose of paying certain bills and obligations of the son. The debtor did not receive reasonably equivalent value and the Court declines to adopt the “no harm, no foul” rule defense (i.e. wildcard exemption is not fully used, but could have been used for the subject funds). Opinion below.

Judge: Lloyd

Attorney for Trustee: Peter M. Gannott

Attorney for Defendant: Ross Benjamin Neuhauser

2017-12-21 – in re johnson

Author: Matt Lindblom

Ryan v. Morris (In re Morris)

(Bankr. W.D. Ky. Dec. 19, 2017)

The bankruptcy court enters judgment in favor of the plaintiffs, holding the debt owed to them is nondischargeable under 11 U.S.C. § 523(a)(2)(A) and (a)(6), and holding that the debtors should be denied a discharge under 11 U.S.C. § 727(a)(3) and (a)(4). The debtors borrowed funds from the plaintiffs for real estate investments but failed to fully disclose how the funds were being used and used proceeds from sales for unauthorized purchases. Opinion below.

Judge: Lloyd

Attorneys for Plaintiffs: Kerrick Bachert PSC, Scott A. Bachert, Ashley Gerughty

Attorneys for Debtors: Mark H. Flener, Alicia C. Johnson

2017-12-19 – in re morris

Author: Matt Lindblom

Nestle Waters North America, Inc. v. Mountain Glacier LLC (In re Mountain Glacier LLC)

(Sixth Circuit Dec. 11, 2017)

The Sixth Circuit affirms the bankruptcy court’s decision finding the reorganized Chapter 11 debtor retained its claims against the defendant in a pre-petition arbitration. The court finds that the debtor sufficiently identified the claim in its disclosure statement and the plan provided that it would be transferred to the reorganized debtor. Nothing more was required to retain the claim. Opinion below.

Judge: Thapar

Attorney for Debtor: Bradley Arant Boult Cummings, William L. Norton, III

Attorneys for Defendant: Pepper Hamilton, Robert S. Hertzberg, Deborah T. Kovsky-Apap; Baker Donelson, Courtney Hunter Gilmer, John Hayden Rowland

2017-12-11 – in re mountain glacier

Author: Matt Lindblom

Edmonton State Bank v. Smith (In re Smith)

(Bankr. W.D. Ky. Dec. 6, 2017)

The bankruptcy court finds that two tobacco pole barns on the debtor’s property were fixtures and thus subject to the plaintiff bank’s mortgage. Two other creditors with security interests in the debtor’s personal property argued that the barns were instead subject to their liens and thus the insurance proceeds following destruction of the barns in a wind storm should be subject to their lien. The court analyzes Kentucky law on fixtures and rules in favor of the mortgage holder. Opinion below.

Judge: Lloyd

Attorney for Plaintiff: T. Richard Alexander, II

Attorney for Debtor: Sullivan Mountjoy Stainback & Miller PSC, K. Timothy Kline

Attorney for Defendants: Brian R. Pollock; Adam R. Kegley

2017-12-06 – in re smith

Author: Matt Lindblom

Whirlpool Corporation v. HHGreg, Inc. (In re HHGregg, Inc.)

(Bankr. S.D. Ind. Dec. 4, 2017)

The bankruptcy court grants the motion to dismiss, finding the defendant’s security interest in the debtor’s assets, including its inventory, has priority over the plaintiff’s reclamation rights. The plaintiff sold goods to the debtor up to the petition date and sought either return of the goods delivered within the reclamation period or recovery of the proceeds from the sale of such goods. Pursuant to 11 U.S.C. § 546(c), the Court finds the reclamation rights are subordinate and the complaint should be dismissed. Opinion below.

Judge: Jeffrey J. Graham

Attorneys for Plaintiff: Warner Norcross & Judd LLP, Robert Michael Azzi, Stephen B. Grow, Janet L. Ramsey; Rubin & Levin, P.C., Joshua W. Casselman, James E. Rossow, Jr.

Attorneys for Defendants: Ice Miller LLP, Adam Arceneaux, Sarah Lynn Fowler, Jeffrey A. Hokanson; Morgan Lewis & Bockius LLP, Andrew Joseph Gallo, Neil E. Herman; Choate Hall & Stewart LLP, Mark D. Cahill, Sean Monahan, John Ventola; Faegre Baker Daniels LLP, Terry E. Hall, Jay Jaffe; DLA Piper LLP, David E. Avraham, Stuart M. Brown, Jeffrey Scott Torosian

2017-12-04 – in re hhgregg

Author: Matt Lindblom