Kohut v. United Healthcare Insurance Company (In re LSC Liquidation, Inc.)

(6th Cir. July 18, 2017)

The Sixth Circuit affirms the bankruptcy court’s order modifying its prior sale order under Rule 60(b). The court’s original order approved a sale of estate assets but the sale agreement and the order failed to include certain contracts to be assumed and assigned to the buyer. The court finds that modification of the order was appropriate because the motion to modify the order was filed within one year of entry of the sale order and the bankruptcy court properly exercised its discretion after weighing the relevant factors. Opinion below.

Judge: Stranch

Attorneys for Movant: Wolfson Bolton, Anthony J. Kochis, Scott A. Wolfson

Attorney for Appellee: Jeffrey Scott Grasi

2017-07-18 – in re lsc liquidation

Author: Matt Lindblom

Giese v. Community Trust Bank (In re HNRC Dissolution Co.)

(Bankr. E.D. Ky. Apr. 15, 2016)

The bankruptcy court dismisses the plaintiff’s complaint because it failed to state a claim. The complaint was based on a factual assertion that the plaintiff’s predecessor had an interest in certain bank account funds. However, the prior 11 U.S.C. § 363 sale order and confirmation order adjudicated otherwise. Thus, the claims were barred by the doctrine of res judicata. Opinion below.

Judge: Wise

Attorneys for Plaintiff: Philip G. Fairbanks, M. Austin Mehr, John M. Simms

Attorneys for Defendants: Stoll Keenon Ogden PLLC, Philip Douglas Barr, Kent Durning, Lea Pauley Goff, Dinsmore and Shohl LLP, Janet Smith Hobrook, Martin B. Tucker, H. Derek Hall

2016-04-15 – in re hnrc dissolution co

Author: Matt Lindblom

Central Mortgage Company v. Murry (In re Burger)

(S.D. Ind. Sep. 21, 2015)

The district court affirms the bankruptcy court’s decision determining the winning bidder at an auction of estate property. The secured lender argues it submitted a credit bid that was higher than the successful bid. However, the secured lender failed to communicate a credit bid to the auctioneer, and the emails to the auctioneer’s alleged agent were insufficient to overcome the auctioneer’s determination of the successful bid at the auction. Opinion below.

2015-09-21 – in re burger

Author: Matt Lindblom

Arlington Capital LLC v. Bainton McCarthy LLC

(N.D. Ind. June 26, 2015)

The district court affirms the bankruptcy court’s approval of the attorney fee application. The law firm was retained by the trustee to pursue a 11 U.S.C. § 363(n) claim against the purchaser of the chapter 11 debtor’s assets for colluding with bidders to set the sale price. The defendant argued the award of attorney fees was inappropriate because they were not incurred for services “reasonably likely to benefit the debtor’s estate,” as a secured creditor had a lien on the property sold and thus should have recovered any difference between the sale price and the actual value of the property sold. The court holds that the recovery would be “after acquired property” under § 552(a) and thus property of the estate. As such, the attorney fees were incurred to benefit the debtor’s estate. Opinion below.

2015-06-26 – arlington capital llc v bainton mccarthy llc

Author: Matt Lindblom

In re Manalpan Mining Company, Inc.

(Bankr. E.D. Ky. June 19, 2015)

The bankruptcy court grants the trustee’s motions to transfer coal mining leases under 11 U.S.C. § 363. The “lessor” argued that the agreements were leases, and thus § 365 should control. However, the court recognizes that under Kentucky law coal mining leases are treated as conveyances of real property. Thus these agreements were not leases, despite contract language suggesting they were. Opinion below.

2015-06-19 – in re manalpan mining company

Author: Matt Lindblom