Chinook USA, LLC v. Duck Commander, Inc.

(W.D. Ky. Jan. 8, 2016)

The district court grants the defendants’ motion to withdraw the reference to the bankruptcy court. The debtor filed this action prior to filing its bankruptcy petition. The debtor then asserted the same claims against the defendant in an adversary proceeding. The court holds that there is good cause for withdrawal of the reference because of the overlapping facts, parties, issues, and requested relief. Opinion below.

2016-01-08 – chinook usa v duck commander

Author: Matt Lindblom

Cory v. Bennett

(W.D. Ky. Aug. 31, 2015)

The district court affirms the bankruptcy court’s dismissal of the claims against the debtor without prejudice. The debtor objected to dismissing the claims, following a settlement agreement, without condition or awarding him attorney fees. The district court finds the bankruptcy court was within its discretion to do so, as the debtor did not suffer plain legal prejudice as a result of the dismissal. Opinion below.

2015-08-31 – cory v bennett

Author: Matt Lindblom

Cory v. Leasure

(W.D. Ky. July 15, 2015)

The district court grants the appellee’s motion and dismisses the appeal. The appellant had executed a settlement agreement with the Chapter 11 trustee, which was approved by the bankruptcy court under Bankruptcy Rule 9019. The agreement contained a provision whereby the appellant released claims against the trustee. The district court finds that the appeal relates to claims released and thus dismisses the appeal. Opinion below.

2015-07-15 – cory v leasure

Author: Matt Lindblom

Irvin v. Faller

(W.D. Ky. May 7, 2015)

The district court denies the adversary proceeding defendant’s motion to withdraw the reference. The plaintiffs obtained a state court judgment against the defendant before the defendant filed his Chapter 7 petition. The plaintiffs then commenced the adversary proceeding to have the judgment declared non-dischargeable. The court first concludes that the motion was not timely filed, as it was filed nearly a year after the adversary complaint and after substantial briefing in the bankruptcy court. The court also concludes that the defendant failed to show cause for a discretionary withdraw of the reference because the non-dischargeability action was a core proceeding and the defendant was not entitled to a jury trial. Opinion below.

2015-05-07 – irvin v faller

Author: Matt Lindblom

Kentucky Employees Retirement System v. Seven Counties Services, Inc.

(W.D. Ky. Feb. 4, 2015)

The district court denies the appellants’ motion to stay the bankruptcy court’s orders confirming the debtor’s chapter 11 plan until appeals are concluded. The court holds that the appellant failed to show likelihood of success on its appeal of the issue of whether an executory contract existed between the appellant and the debtor. Further, the appellants failed to show certain and immediate harm would result if the confirmation orders are not stayed. Opinion below.

2015-02-04 – kers v seven counties services

Author: Matt Lindblom

Reisz v. Crocker

(W.D. Ky. Dec. 23, 2014)

The district court affirms the bankruptcy court’s order setting the Chapter 7 trustee’s commission at an amount lower than the § 326 statutory rate. The trustee sold collateral property with a $50,000 carveout for unsecured creditors. However, after the debtor’s homestead exemption and bankruptcy estate taxes were paid, only about $22,000 of the carveout remained. The trustee requested the remainder as a commission, as it was less than the statutory commission. The United States Trustee objected and requested the commission be set at $5,000, and the bankruptcy court entered its order with the lower amount. The trustee appealed, arguing the statutory rate was a reasonable commission. The district court affirmed, noting that the trustee should not have conducted the sale if there would be no benefit to unsecured creditors. The court held that the circumstances warranted a commission lower than the statutory rate. Opinion below.

2014-12-23 – reisz v crocker

Seven Counties Services, Inc. v. NextGen Healthcare Systems, LLC

(W.D. Ky. Aug. 12, 2014)

The adversary proceeding defendant filed a motion to withdraw the reference to the bankruptcy court, arguing the debtor’s claims were merely non-core breach of contract claims. The district court denied the motion, finding that the defendant consented to the bankruptcy court’s jurisdiction when it filed its proof of claim. The defendant’s withdrawal of the proof of claim after the adversary proceeding was filed did not alter the effect of that consent. Opinion below.

2014-08-12 – seven counties services v nextgen healthcare