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

(W.D. Ky. Mar. 31, 2016)

The district court affirms the bankruptcy court’s decision finding that Seven Counties Services, Inc. was permitted to file for Chapter 11 bankruptcy relief because it was not a “governmental unit” as defined in the bankruptcy code. Further, the debtor’s contract with KERS was properly deemed an executory contract that could be rejected by the debtor. The court makes one factual correction to the record, but the bankruptcy court’s decision is affirmed in all other respects. Opinion below.

Judge: Hale

Attorneys for KERS: Ice Miller LLP, Daniel R. Swetnam, Tyson A. Crist, Victoria E. Powers

Attorneys for Debtor: Seiller Waterman, LLC, David Cantor, Tyler R. Yeager, Gray & White, Paul Joseph Hershberg, Bingham Greenebaum Doll LLP, Philip C. Eschels, Wyatt Tarrant & Combs LLP, Theodore T. Myre, Jr.

2016-03-31 – kers v seven counties services

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

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

Kendrick v. The Lamar Company, LLC (In re Parr)

(Bankr. E.D. Ky. Sep. 8, 2014)

The bankruptcy court holds that a lease of property for purposes of erecting and maintaining a billboard is a lease of real property and thus the lessee may retain its rights under the lease upon rejection of the lease by the trustee, pursuant to 11 U.S.C. § 365(h)(1)(A). The trustee had sold the debtor’s commercial real estate in the bankruptcy, but the billboard lessee refused to relocate following the sale. The trustee sought a judgment declaring the lease rejected, which was granted, and sought injunctive relief ordering the lessee to vacate the premises, which was denied. Opinion below.

2014-09-08 – in re parr

Bankr. N.D. Ind. Opinions – June to August 2014

The following opinions were just recently made available on the website for the Bankruptcy Court for the Northern District of Indiana. I understand that opinions from this Court may be uploaded as “opinions” at different times (sometimes much later than the date they are issued), depending on the particular Judge and office staff. I will continue to check this Court’s website routinely and report on opinions as soon as they appear there.

In re Kohler (Bankr. N.D. Ind. June 27, 2014) – Denial of motion to approve settlement under Bankruptcy Rule 9019, because settlement terms not finalized. Opinion below.

2014-06-27 – in re kohler

Sun Enterprises, Inc. v. May (In re May) (Bankr. N.D. Ind. July 9, 2014) – Motion to quash subpoena granted where party served resided outside the state of and more than 100 miles from the site of the deposition stated in the subpoena. Opinion below.

2014-07-09 – in re may

In re Wilson (Bankr. N.D. Ind. July 14, 2014) – Motion to reconsider granted such that a motion to assume an executory contract would be reheard by the Court. Opinion below.

2014-07-14 – in re wilson

In re Neary (Bankr. N.D. Ind. July 17, 2014) – Motion to dismiss case with prejudice for bad faith filing granted, where debtor had filed multiple bankruptcies in short time period. Opinion below.

2014-07-17 – in re neary

Sun Enterprises, Inc. v. Hoffman (In re Hoffman) (Bankr. N.D. Ind. Aug. 11, 2014) – Denial of plaintiff’s motion for summary judgment in nondischargeability action where factual dispute existed with respect to alleged misrepresentation. Opinion below.

2014-08-11 – in re hoffman

Sun Enterprises, Inc. v. May (In re May) (Bankr. N.D. Ind. Aug. 11, 2014) – Denial of plaintiff’s motion for summary judgment in nondischargeability action where factual dispute existed with respect to alleged misrepresentation. Opinion below.

2014-08-11 – in re may

Sun Enterprises, Inc. v. Stafford (In re Stafford) (Bankr. N.D. Ind. Aug. 11, 2014) – Plaintiff’s motion for summary judgment in nondischargeability action granted, pursuant to 11 U.S.C. § 523(a)(2)(A), where defendant did not challenge plaintiff’s declarations or the motion. Opinion below.

2014-08-11 – in re stafford

Fischer v. Trammell (In re Trammell) (Bankr. N.D. Ind. Aug. 13, 2014) – Trustee’s motion for default judgment granted in adversary proceeding filed to revoke the debtor’s discharge. Opinion below.

2014-08-13 – in trammell

In re Trinity Coal Corporation

(Bankr. E.D. Ky. July 31, 2014)

The bankruptcy court denies the debtors’ motion to reject two executory contracts. The two contracts were part of an indivisible, integrated property exchange transaction, and thus they could not be severed for the purpose of rejection under 11 U.S.C. § 365. A master property exchange agreement evidenced the parties’ intent that all of the component contracts were part of a single agreement. Opinion below.

2014-07-31 – in re trinity coal corporation

Kentucky Employees Retirement System v. Seven Counties Services, Inc. (In re Seven Counties Services, Inc.)

(Bankr. W.D. Ky. Issued May 30, 2014)

In this lengthy opinion, Judge Lloyd of the Bankruptcy Court for the Western District of Kentucky grants judgment in favor of debtor Seven Counties Services in this adversary proceeding brought against it by Kentucky Employees Retirement System (“KERS”).  The Court also grants the debtor’s motion to reject its executory contract with KERS, permitting it to leave the state retirement system.  The Court concludes that the debtor is not a governmental entity and thus may proceed with its Chapter 11 reorganization.  Opinion below.

2014-05-30 – kers v seven counties services