Spradlin v. Wrigley’s 7-711, Inc. (In re Licking River Mining, LLC)

(Bankr. E.D. Ky. June 21, 2017)

The bankruptcy court grants the defendant’s motion to dismiss the trustee’s complaint, which sought to avoid transfers from debtors to the defendant. The complaint failed to state a claim, in part because the defendant could not be deemed an “insider” of the debtor. The court additionally finds that the complaint contains insufficient facts to support various other claims. Opinion below.

Judge: Wise

Attorneys for Trustee: Bingham Greenbaum Doll LLP, Claude R. Bowles, Jr., Daniel J. Donnellon, James R. Irving, April A. Wimberg

Attorneys for Defendant: Stites & Harbison, PLLC, Brian H. Meldrum, Brian R. Pollock

2017-06-21 – in re licking river mining

Author: Matt Lindblom

In re Pace

(B.A.P. 6th Cir. June 20, 2017)

The Sixth Circuit B.A.P. holds that 11 U.S.C. § 522(f)(2)(C) does not preclude avoidance of mortgage deficiency judgment liens. Rather, based on the plain meaning of the statute, that section simply makes clear that entry of a judgment in a foreclosure action does not convert the underlying mortgage agreement into a judicial lien that may be avoided. Here, the bankruptcy court denied the debtor’s motion to avoid a deficiency judgment lien following a real property foreclosure action, stating that § 522(f)(2)(C) bars avoidance of a foreclosure deficiency judgment lien. The B.A.P. analyzes conflicting case law from multiple jurisdictions and reverses the bankruptcy court.

Judge: Wise

Attorney for Debtor: T. Robert Bricker

Author: Matt Lindblom

2017-06-20 – in re pace

Levin v. Paige (In re Stein)

(S.D. Ind. June 2, 2017)

The district court denies the defendant’s motion to withdraw the reference in this fraudulent conveyance action. The defendant answered the complaint, requesting a jury trial and noting that he does not consent to adjudication by the bankruptcy judge. The district court acknowledges that the bankruptcy court lacks authority to conduct a jury trial without express consent of all parties. However, the district court holds that immediate transfer is not necessary. The bankruptcy court may handle all pretrial matters, and the case can be transferred to the district court if a jury trial becomes necessary. Opinion below.

Judge: Pratt

Attorneys for Trustee: Rubin & Levin, PC, James E. Rossow, Jr. John M. Rogers

Attorney for Defendant: Jeffrey O. Meunier

2017-06-02 – in re stein

Author: Matt Lindblom