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2009 NORTON BANKRUPTCY LAW SEMINAR MATERIALS

2009 Chapter 11 Recent Developments (Part I)

By Hon. Leif M. Clark

TABLE OF CONTENTS

I. ESTATE ADMINISTRATION 1
A. First Day Motions 1
In re New Rochelle Telephone Corp., 2008 WL 4911548 (Bankr. E.D.N.Y. Nov. 13, 2008) 1
B. Automatic Stay 1
American Home Mortgage Investment Corp. v. Lehman Brothers Inc., et. al. (In re American Home Mortgage Holdings, Inc.), 388 B.R. 69 (Bankr. D. Del. 2008) 1
In re Pro-Fit International Limited, et. al., 391 B.R. 850 (Bankr. C.D. Cal. 2008) 2
C. Sales 3
25th Street Associated, LLC, et. al. v. In re Union Sq. Associates, LLC, et. al. (In re Union Sq. Associates, LLC), 392 B.R. 474 (Bankr. D. Utah 2008) 3
In re TSIC, Inc. (f/k/a Sharper Image Corp.), 393 B.R. 71 (Bankr. D. Del. 2008) 3
D. Executory Contracts and Unexpired Leases 4
ReGen Capital I, Inc. v. Halperin (In re U.S. Wireless Data, Inc.), 2008 WL 4724366 (2d Cir. Oct. 29, 2008) 4
E. Bankruptcy Jurisdiction 5
Central Valley AG Enterprises v. U.S.A., 531 F.3d 750 (9th Cir. 2008) 5
Broadhollow Funding, LLC v. Bank of Am., NA (In re Am. Home Mortg. Holdings), 390 B.R. 120 (Bankr. D. Del. 2008) 6
Munding v. LeMaster & Daniels, P.L.L.C., et. al. (In re Spokane Raceway Park, Inc. ), 392 B.R. 451 (Bankr. E.D. Wa. 2008) 8
Seacoast National Bank v. Jordyn Holdings IV, LLC, 392 B.R. 876 (D. M.D. Fla. 2008)9
Shandler v. DLJ Merchant Banking, Inc. (In re Insilco Technologies, Inc.), 394 B.R. 747 (D. Del. 2008) 9
F. Employment of Professionals, Fees, and Sanctions 10
Caplin & Drysdale Chartered v. Babcock & Wilcox Co., et. al. (In re Babcock & Wilcox Co.), 526 F.3d 824 (5th Cir. 2008) 10
Knight, et. al. v. Luedtke, et. al. (In re Yorkshire LLC), 540 F.3d 328 (5th Cir. 2008) 10
Cellular 101, Inc. v. Channel Communications, Inc., et. al. (In re Cellular 101, Inc.), 539 F.3d 1150 (9th Cir. 2008) 11
In re Scarlett Hotels, Inc., 392 B.R. 698 (BAP 6th Cir. 2008) 12
G. Trustees and Examiners 13
In re Blue Stone Real Estate, Construction & Development Corp., 392 B.R. 897 (Bankr. M.D. Fla. 2008) 2
In re XO Communications, Inc., 2008 WL 5205650 (Bankr. S.D.N.Y. Dec. 12, 2008) 14
H. Collective Bargaining: Benefits and Pensions 15
United Mine Workers of America 1974 Plan and Trust, et. al. v. Lexington Coal Co., LLLC (In re HNRC Dissolution Co.), 396 B.R. 461 (BAP 6th Cir. 2008) 15
I. Other Issues 16
Jennings v. Maxfield (In re Jennings), 533 F.3d 1333 (11th Cir. 2008) 16
In re Exide Technologies, 544 F.3d 196 (3d. Cir. 2008) 16
In re Perry, 394 B.R. 852 (Bankr. S.D. Tex. 2008) 18
In re River Center Holdings, LLC, 394 B.R. 704 (Bankr. S.D.N.Y. 2008) 18
Raymond Management Services, Inc. v. William A. Pope Co. (In re Raymond Professional Group, Inc.), 2008 WL 4968001 (Bankr. N.D. Ill. 2008) 19
II. PROPERTY OF THE ESTATE 20
A. Use of Estate Property 20
Omega Consulting v. Edwards (In re Future Trust, Inc.), 387 B.R. 574 (BAP 8th Cir. 2008) 20
In re SN Liquidation, Inc. v. Icon International, Inc. (In re SN Liquidation, Inc.), 388 B.R. 579 (Bankr. D. Del. 2008) 20
In re SN Liquidation, Inc. v. Icon International, Inc. (In re SN Liquidation, Inc.), 388 B.R. 579 (Bankr. D. Del. 2008) 20
In re Oakwood Homes Corp. v. United States Fire Insurance Co. (In re Oakwood Homes Corp.), 394 B.R. 352 (Bankr. D. Del. 2008) 21
B. Avoidance / Preference Actions 23
Johnson, et. al. v. Slatkin (In re Slatkin), 525 F.3d 805 (9th Cir. 2008) 22
Wolkowitz v. FDIC (In re Imperial Credit Indus., Inc.), 527 F.3d 959 (9th Cir. 2008) 23
Official Committee of Unsecured Creditors v. Western United Life Assurance Co. (In re Tri-Valley Distributing, Inc.), 533 F.3d 1209 (10th Cir. 2008) 24
Baldi v. Samuel Son & Co., Ltd., 548 F.3d 579 (7th Cir. 2008) 25
McHale v. Reliable Home Services, Inc. (In re Cape Haze Windward Partners, Inc.), 391 B.R. 887 (Bankr. M.D. Fla. 2008) 25
Rollins, et. al. v. Neilson (In re Cedar Funding, Inc.), 2008 WL 4829954 (Bankr. N.D. Cal. 2008) 26
C. Other Issues 26
Ades and Berg Group Investors v. Breeden (In re Ades and Berg Group Investors), 2008 WL 5220529 (2d Cir. 2008) 26
Doug Crosby, et. al. v. Orthalliance New Image, et. al. (In re OCA, Inc.), 2008 WL 5192077 (5th Cir. Dec. 12, 2008) 27
Delta Financial Corp., et. al. v. Westchester Surplus Lines Insurance Co., et. al. (In re Delta Financial Corp., et. al.), 2008 WL 5207087 (Bankr. D. Del. Dec. 15, 2008) 28
III. CLAIMS 28
A. Administrative Expenses and Priority Claims 28
Giant Eagle, Inc. v. Phar-Mor, Inc., 528 F.3d 455 (6th Cir. 2008) 28
Phar-Mor, Inc. v. McKesson Corp. (In re Phar-Mor, Inc.), 534 F.3d 502 (6th Cir. 2008) 29
In re Lakeshore Construction Co. of Wolfeboro, Inc., 390 B.R. 751 (D. N.H. 2008) 30
In re First Magnus Financial Corp., 390 B.R. 667 (Bankr. D. Ariz. 2008) 30
In re Plastech Engineered Prodcuts, Inc., et. al., 394 B.R. 147 (Bankr. E.D.Mich. 2008) 31
In re Powermate Holding Corp., 394 B.R. 765 (D. Del. 2008) 32
In re Stone Barn Manhattan LLC f/k/a Steve & Barry's LLC, et. al., 2008 WL 5265739 (Bankr. S.D.N.Y. Dec. 17, 2008) 32
In re Platech Engineered Products, Inc., 2008 WL 5170618 (Bankr. E.D. Mich. Dec. 10, 2008) 33
B. Secured Claims and Liens 34
Clear Channel Outdoor, Inc. v. Knupfer, et. al. (In re PW, LLC), 391 B.R. 25 (B.A.P. 9th Cir. 2008) 34
Urban Communicators PCS Limited Partnership, et. al. v. Gabriel Capital, L.P. (In re Urban Communicators PCS Limited Partnership), 394 B.R. 325 (S.D.N.Y. 2008) 35
C. Proof of Claim: Allowance, Disallowance and Amendments 36
Bankruptcy Services, Inc. v. Ernst & Young, et. al. (In re CBI Holding Co., Inc.), 529 F.3d 432 (2d Cir. 2008) 36
Ropes & Gray LLP v. Jalbert (In re Engage, Inc.), 544 F.3d 50 (1st Cir. 2008). 38
In re NVF Co., et. al., 394 B.R. 33 (Bankr. D. Del. 2008) 38
D. Priority, Subordination, and Setoff 39
Faulkner v. SRI Restructuring, Inc., et. al. (In re SRI Restructuring, Inc.), 532 F.3d 355 (5th Cir. 2008) 39
United Bank of Iowa v. Independent Inputs, et. al. (In re Western Iowa Limestone, Inc.), 538 F.3d 858 (8th Cir. 2008) (August 2008) 40
Sullivan v. U.S.A., et. al. (In re Hulett Corp.), 389 B.R. 610 (Bankr. N.D. Ill. 2008) 42
Buenting, et. al. v. Crystal Cascades Civil, LLC, et. al. (In re Crystal Cascades Civil, LLC), 2008 WL 5097701 (Bankr. D. Nev. Nov. 3, 2008) 42
E. Derivative Claims 43
In re Bethlehem Steel Corp., et. al. v. Moran Towing Corp., et. al. (In re Bethlehem Steel Corp.), 390 B.R. 784 (Bankr. S.D.N.Y. 2008) 43
F. Unsecured Claims 43
In re 37-02 Plaza, LLC, 387 B.R. 413 (Bankr. E.D.N.Y. 2008) 43
Ravin v. Morris Truman, L.L.C. (In re Popular Club Plan, Inc.), 395 B.R. 587 (Bankr. D.N.J. 2008) 44
G. Valuation, Estimation, and Other Issues 45
GE Capital Corp. v. Future Media Productions, Inc., 536 F.3d 969 (9th Cir. 2008) 45
Wooley, et. al. v. Faulkner (In re SI Restructuring, Inc.), 542 F.3d 131 (5th Cir. 2008) 45
Airadigm Commn's, Inc., et. al. v. FCC (In re Airadigm Commn's, Inc.), 2008 WL 4724375 (7th Cir. Oct. 29, 2008) 46
Preston Trucking Co., Inc. v. Liquidity Solutions, Inc., et. al. (In re Preston Trucking Co., Inc.), 392 B.R. 623 (D. Md. 2008) 47
IV. PLAN CONFIRMATION 48
A. Classification and Voting Issues 48
In re Nutritional Sourcing Corp., 2008 WL 5396491 (Bankr. D. Del. Dec. 23, 2008) 48
B. Standing to Object 49
In re Quigley Company, Inc., 391 B.R. 695 (Bankr. S.D.N.Y. 2008) 49
C. Settlement and Releases 50
In re Saint Vincents Catholic Medical Centers of New York, 2008 WL 5396873 (Bankr. S.D.N.Y. Dec. 4, 2008) 50
D. Other Issues 50
Official Committee of Equity Security Holders v. Official Committee of Unsecured Creditors (In re Adelphia Communications Corp.), 2008 WL 4349846 (2d Cir. Sep. 24, 2008) 50
In re New Century TRS Holdings, Inc., et. al., 390 B.R. 140 (Bankr. D. Del. 2008) 51
V. POST-CONFIRMATION 52
A. Jurisdiction and Standing 52
Newby, et. al. v. Enron Corp., et. al. (In re Enron Corp. Securities, Derivative & ERISA Litig.), 535 F.3d 325 (5th Cir. 2008) 52
Dynasty Oil and Gas, LLC v. Citizens Bank, et. al. (In re United Operating, LLC), 540 F.3d 351 (5th Cir. 2008) 54
Adelphia Recovery Trust v. Bank of America, N.A., 390 B.R. 80 (S.D.N.Y. 2008) 55
B. Effect and Enforcement of Confirmation 55
Arch Wireless, Inc. v. Nationwide Paging, Inc., 534 F.3d 76 (1st Cir. 2008) 55
JCB, Inc. v. Union Planters Bank, N.A. (In re Machinery, Inc.), 539 F.3d 862 (8th Cir. 2008) 56
Browning v. MCI, Inc. (In re Worldcom, Inc.), 2008 WL 4554713 (2d Cir. Oct. 14, 2008) 57
JELD-WEN, Inc. v. Mary Van Brunt, et. al. (In re Grossman's, Inc.), 389 B.R. 384 (Bankr. D. Del. 2008) 58
The Official Committee of Equity Security Holders of Finova Group, Inc. v. The Finova Group, Inc., et. al. (In re The Finova Group, Inc.), 393 B.R. 64 (D. Del. 2008) 58
Street v. The End Of The Road Trust, et. al., 394 B.R. 19 (Bankr. D. Del. 2008) 59
C. Mootness, Appeals, and Due Process 60
Curreys of Nebraska, Inc., et. al. v. United Producers, Inc. (In re United Producers, Inc.), 526 F.3d 942 (6th Cir.) 60
Hilal v. Williams (In re Hilal), 534 F.3d 498 (5th Cir. 2008) 61
D. Other Issues 61
Asbestosis Claimants v. American Steamship Owners Mutual Protection and Indemnity Association, Inc. (In re Prudential Lines Inc.), 533 F.3d 151 (2nd Cir. 2008) 61
Newby v. Enron Corp., et. al., 542 F.3d 463 (5th Cir. 2008) 62
Gray v. Evercore Restructuring, L.L.C. (In re High Voltage Engineering Corp.), 2008 WL 4457053 (1st Cir. Oct. 6, 2008) 63
Mosier v. Callister, Nebeker & McCullough, et. al. (In re National School Fitness Foundation), 546 F.3d 1271 (10th Cir. 2008) 64
Ernst & Young, LLP v. Reilly, et. al. (In re Earned Capital Corp., Inc.), 393 B.R. 362 (Bankr. W.D. Pa. 2008) 64
VI. PROCEDURAL AND MISCELLANEOUS ISSUES 65
A. Evidence and Discovery 65
In re Carco Electronics, 536 F.3d 211 (3rd Cir. 2008) 65
Kaye v. Agripool, SRL (In re Murray, Inc.), 293 B.R. 288 (BAP 6th Cir. 2008) 66
B. Jury Trials 67
Gecker v. Marathon Fin. Ins. Co. (In re Automotive Professionals, Inc.), 389 B.R. 621 (Bankr. N.D. Ill. 2008) 67
C. Reconsideration, Relief from Judgment 68
Gray v. Evercore Restructuring, L.L.C., et. al. (In re High Voltage Engineering Corp.), 2008 WL 4457055 (1st Cir. Oct. 6, 2008) 68
Brian A. Beitel, D.D.S. v. OCA, Inc., et. al. (In re OCA, Inc.), 2008 WL 5147487 (5th Cir. Dec. 9, 2008) 68
In re Baron's Stores, Inc., 390 B.R. 734 (Bankr. S.D. Fla. 2008) 69
D. Other Issues 70
Federal Trade Commission v. Abeyta (In re Abeyta), 387 B.R. 846 (Bankr. D. N.M. 2008) 70
Bridgeport Holdings Inc. Liquidating Trust v. Boyer, et. al. (In re Bridgeport Holdings, Inc.), 388 B.R. 548 (Bankr. D. Del. 2008) 71
Burgio v. Protected Vehicles, Inc., et. al. (In re Protected Vehicles, Inc.), 2008 WL 4977631 (Bankr. D. S.C. Nov. 21, 2008) 71
Bartock v. BAE Systems Survivability Systems, LLC, (In re Bartock), 2008 WL 5159248 (Bankr. W.D. Pa. Dec. 9, 2008) 72
E. Foreign Proceedings 73
The Argo Fund Ltd. v. Board of Directors of Telecom Argentina, S.A. (In re Board of Dir. Of Telecom Argentina, S.A.), 528 F. 3d 162 (2d Cir. 2008) 73

 

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