Couch v. Panther Petroleum, LLC (In re Couch)

(6th Cir. Nov. 6, 2017)

The Sixth Circuit affirms the B.A.P., holding the entry of summary judgment in favor of the creditors in the nondischargeability action was appropriate. The creditors obtained a default judgment against the debtor in Tennessee state court. The default judgment was on the merits and the doctrine of collateral estoppel applied. Opinion below.

Judge: Rogers

Appellant: Pro Se

Attorneys for Creditors: Keating, Muething & Klekamp, Joseph E. Lehnert, Brian P. Muething, Jason V. Stitt

2017-11-06 – in re couch

Author: Matt Lindblom

In re Wilson

(Bankr. W.D. Ky. Nov. 1, 2017)

The bankruptcy court grants the creditor’s motion for stay relief to proceed with a state court foreclosure action. The creditor had obtained an order granting stay relief in a prior bankruptcy filed by the debtor’s son, the owner of the property. The debtor’s life estate interest in the property does not prevent the foreclosure action from proceeding. Opinion below.

Judge: Lloyd

Attorney for Debtor: Mark H. Flener

Attorney for Creditor: Bradley S. Salyer

2017-11-01 – in re wilson

Author: Matt Lindblom

In re Lexington Hospitality Group, LLC

(Bankr. E.D. Ky. Nov. 1, 2011)

The bankruptcy court grants the debtor’s motion regarding cash collateral use, because the property to be used (hotel revenue and post-petition restaurant revenue) was not subject to a perfected security interest. The court determines that the hotel revenue paid in cash was not subject to the creditor’s mortgage because it was not rent. A hotel customer does not obtain a real property interest in a hotel room, but instead has a license. The cash paid for the room is thus personal property. The creditor was not in possession of the cash or deposit accounts, and thus the lien was not perfected as to that cash. Hotel revenue paid from credit cards constituted an obligation that would be a “payment intangible” under Article 9. The creditor’s financing statement failed to identify payment intangibles as collateral. While it referenced an “all asset” security agreement, that was insufficient to perfect a security interest in payment intangibles. The creditor does not have a lien on post-petition restaurant revenue pursuant to 11 U.S.C. § 552. Opinion below

Judge: Schaaf

Attorneys for Debtor: DelCotto Law Group PLLC, Laura Day DelCotto, Jamie L. Harris, Sara A. Johnston

Attorneys for Creditors: Dinsmore & Shohl LLP, Martin B. Tucker, Sarah S. Mattingly

2017-11-01 – in re lexington hospitality group

Author: Matt Lindblom

 

Renner v. U.S. Bank National Association (In re Renner)

(Bankr. S.D. Ind. Oct. 20, 2017)

The bankruptcy court dismisses the debtor’s complaint against the lender, which asserted claims related to the lender’s foreclosure of its mortgage lien in state court. The court dismisses the stay violation claim, because the property was not property of the estate at the time of the alleged acts, and dismisses the remaining claims because the court lacks subject-matter jurisdiction. Opinion below.

Judge: Carr

Attorney for Debtor: Sawin, Shea & Des Jardines LLC, J. Andrew Sawin

Attorneys for Defendant: Taft Stettinius & Hollister LLP, Tammara Danielle Porter

2017-10-20 – in re renner

Author: Matt Lindblom

Harlan v. Nebraska Alliance Realty Company (In re Harlan)

(Bankr. S.D. Ind. Oct. 19, 2017)

The bankruptcy court grants summary judgment in favor of the county in this § 542 turnover action. The case involves a matter of first impression regarding a Chapter 13 debtor’s rights in the tax surplus fund provided for in Ind. Code § 6-1.1-24-7. The court determines the debtor had two options as of the petition date: (1) exercise the right of redemption by the statutory deadline or (2) allow the redemption period to expire, divest herself of the property, and then make a claim against the tax surplus fund. As of the petition date, the debtor only holds a contingent interest in the tax surplus fund, and thus an order directing turnover of the fund is inappropriate. Opinion below.

Judge: Moberly

Attorney for Debtor: Steven P. Taylor

Attorney for Defendants: Scott R. Richards, Katherine A. Starks; Douglas J. DeGlopper

2017-10-19 – in re harlan

Author: Matt Lindblom

In re Lynn

(Bankr. W.D. Ky. Oct. 16, 2017)

The bankruptcy court overrules the Chapter 7 trustee’s objection to the debtor’s claimed exemption. The debtor moved to reopen her case, add a personal injury cause of action to her schedules, and claim an exemption in a portion of the recovery on the cause of action. The court holds that Law v. Siegel is applicable, and thus the court does not have authority to deny the exemption even if bad faith exists. Opinion below.

Judge: Lloyd

Attorney for Debtor: Darren K. Mexic

Trustee: Jerry Burns

2017-10-16 – in re lynn

Author: Matt Lindblom

In re Witham

(Bankr. E.D. Ky. Oct. 12, 2017)

The bankruptcy court awards damages to the debtor for the creditor’s willful violation of the automatic stay. The debtor had an agreement with the tanning bed salon in which the salon would deduct a monthly payment from her debit card. Despite numerous notifications of the bankruptcy and the violation of the automatic stay, the salon continued to make the deductions post-petition. The court enters an award for damages that includes attorney fees and punitive damages. Opinion below.

Judge: Wise

Attorney for Debtor: Grant M. Axon

2017-10-12 – in re witham

Author: Matt Lindblom