The Bankruptcy Law Firm, Prof. Corp.
In re BP RE, LP, 735 F.3d 279 (5th Cir. 2013)
In re BP RE, LP, 735 F.3d 279 (5th Cir. 2013): 5th Circuit rules parties CANNOT consent to jurisdiction in bankruptcy court, where there is no jurisdiciton in bankruptcy court. Chapter 11 Debtor’s Consent to Jurisdiction Cannot Cure Bankruptcy Court’s Lack of Jurisdiction to Enter Final Judgment. [In re BP RE, LP (5th Cir. 2013).] The Fifth Circuit has held that a Chapter 11 debtor’s consent to the jurisdiction of a bankruptcy court cannot cure the court’s lack of jurisdiction to enter a final judgment under Article III of the Constitution. Facts: A Chapter 11 debtor asserted common-law claims against…
Blade Energy Pty Ltd. et al. v. Rodriguez (In re Rodriguez)
Blade Energy Pty Ltd. et al. v. Rodriguez (In re Rodriguez)—9th Cir. BAP 12/19/13. This is an “unpublished” decision. The United States Bankruptcy Appellate Panel of the Ninth Circuit (the "BAP") has affirmed a bankruptcy court’s (Bankruptcy Judge Scott Clarkson, Bankruptcy Court, CD CA) dismissal of an adversary proceeding as a discovery sanction for failure to comply with initial discovery rules and the court’s procedural rules. Facts: The plaintiffs and appellants (the "Appellants") in this case brought an action against appellee and debtor Jacqueline Rodriguez (the "Appellee" or "Ms. Rodriguez") seeking a determination that their claims against her were non-dischargeable…
Tronox v. Kerr-McGee,__BR__, 2013 WL6596696(Bankr SD NY Dec 12, 2013)
Tronox v. Kerr-McGee,__BR__, 2013 WL6596696(Bankr SD NY Dec 12, 2013): adversary proceeding fraudulent transfer decision, referred to as being a “Game Changing Ruling on Fraudulent Transfer and Spin-Offs to Shed Legacy Liabilities” In a ground-breaking environmental fraudulent transfer case, a New York Bankruptcy court held that Kerr-McGee’s transfer of valuable oil and gas assets to a new company and (attempted) spin-off of the legacy liabilities to newly-formed Tronox constituted fraudulent transfer and that the transaction, which left Tronox insolvent, was not made for reasonably equivalent value. Damages between $5.1 and $14.1 billion are anticipated, payable to the debtor (Tronox) bankruptcy…
Janura et. al. v. Saridakis (In re Saridakis), __BR__
Janura et. al. v. Saridakis (In re Saridakis), __BR__, 2013 WL 6488276, 9th Cir.BAP (Cal.), 12/10/13): The U.S. Bankruptcy Appellate Panel of the Ninth Circuit ("BAP") held that post-trial discovery of a default judgment, that apparently was entered in a state court action contemporaneously with, or immediately following, a trial in the bankruptcy court was not newly discovered evidence "of such magnitude that production of it earlier would likely have changed the outcome of the case." What to learn from this decision: Whatever evidence you have, present that evidence before the Court rules for the first time, because its very…
Jones v. U.S. Trustee, Eugene
Jones v. U.S. Trustee, Eugene, ___F.3d___, 2013 WL 6224330 (9th Cir. 2013 Dec. 2, 2013): Debtors who omit assets from their bankruptcy schedules, and/or undervalue their assets in their bankruptcy schedules, can be denied any discharge, or have discharge revoked, if discharge has alreadby been granted: The United States Court of Appeals for the Ninth Circuit held that fraud which would have justified the bankruptcy court denying a discharge under 11 U.S.C. §727(a)(4)(A) will support an action to revoke a discharge under 11 U.S.C. §727(d)(1). FACTS: In his initially filed bankruptcy schedules and in his testimony at the meeting of…
In re Gasprom, 500 B.R. 598 (9th Cir. BAP 2013)
In re Gasprom, 500 B.R. 598 (9th Cir. BAP 2013). The Ninth Circuit Bankruptcy Appellate Panel held that a secured creditor violated the automatic stay by foreclosing on collateral abandoned by the Trustee of a corporate chapter 7 debtor before the bankruptcy case was closed. Facts In Gasprom, after the corporation’s case was converted from chapter 11, the Trustee moved to abandon the debtor’s sole asset – an non-operational gas station for which there were troublesome issues concerning permitting, hazardous waste and underground storage compliance, and which was fully encumbered to a secured creditor. The debtor objected to the abandonment…
U.S. Supreme Court to Hear Case on Inherited IRAs in Bankruptcy
The U.S. Supreme Court will hear a dispute in the bankruptcy of a small-town pizza shop owner, taking on a case that could dictate how inherited individual retirement accounts are treated in bankruptcy, Reuters reported yesterday. The Supreme Court said yesterday that it would hear arguments in Clark v. Rameker in a fight over whether Heidi Heffron-Clark and her husband, Brandon Clark, can keep creditors from going after $300,000 in an IRA inherited from Heffron-Clark’s late mother. The Clarks declared bankruptcy in 2010 after the pizza shop they opened in their home town of Soughton, Wis., fell victim to economic…
Hazelrigg v. United States Trustee (In re Hazelrigg)
Summary Hazelrigg v. United States Trustee (In re Hazelrigg), BAP No. WW-13-1230-TaDJu (Nov. 19, 2013). This is a “not for publication” decision of the Bankruptcy Appellate Panel for the Ninth Circuit, in which the BAP affirmed the entry of summary judgment against the debtor in an objection to discharge proceeding based in part on the debtor’s invocation of the privilege against self-incrimination under the Fifth Amendment to the United States Constitution. Factual Background Debtor Thomas R. Hazelrigg, III (cDebtor"), was a well-known financier and businessman in the Seattle area, who, along with another associate and developer, was put into an…
Tishgart v. Hoffman (In re Tishgart), BAP No. 12-1160-PaMkH, — B.R. — (9th Cir. Nov. 13, 2012)
After filing for chapter 7 bankruptcy, Tishgart, an attorney-debtor, received over $130,000 in contingent legal fees in fifteen cases. The trustee brought an adversary proceeding to determine the estate’s interest in the post-petition fees, wherein the bankruptcy court deemed Tishgart to have admitted that he provided little or no legal services in those cases after entering bankruptcy. The bankruptcy court analogized the facts of the case to a situation where Tishgart’s clients had terminated his legal services as of the petition date. On that basis, the court surmised it would be justified to award nearly everything to the trustee, but…
Cal-Western Business Services, Inc. v. Corning Capital Group
Cal-Western Business Services, Inc. v. Corning Capital Group, 2013 DJAR 14887 (California Court of Appeal, 2nd Dept 11/6/13) holds that a California corporation that was suspended, for failure to pay its corporation taxes, is disqualified from exercising any right, power or privilege of a corporation, including a suspended corporation may not prosecute or defend a lawsuit, appeal from a judgment, seek a writ, or take any other similar legal action. Because Pacific West was a suspended CA Corp, it lacked power to assign a judgment, that it owned, in its favor, against Corning Capital Group, to Cal -Western Business Services.…