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BANKRUPTCY CASE LAW UPDATE
NAME OF SPEAKER Louis M. Phillips
Materials By:
Louis M. Phillips Ryan J. Richmond
Rick M. Shelby Elizabeth Spurgeon
With Invaluable Assistance Provided By
June Aisa Alcantara
Gordon, Arata, McCollam, Duplantis, & Eagan, L.L.P.
One American Place 301 Main Street, Suite 1600
Baton Rouge, LA 70801-1916 (225) 381-9643
State Bar of Texas 28TH ANNUAL ADVANCED BUSINESS BANKRUPTCY COURSE
June 3, 2010 Dallas, TX
CHAPTER #1
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TABLE OF CONTENTS PAGE
I. SUPREME COURT .......................................................................................................... 1
United Student Aid Funds, Inc. v. Espinosa, 130 S.Ct. 1367 (U.S. 2010) .............. 1
Milavetz, Gallop & Milavetz, P.A. v. U.S., 130 S.Ct. 1324 (U.S., 2010) ................ 1
Hamilton v. Lanning, 130 S.Ct. 487 (U.S. 2009) .................................................... 2
II. JURISDICTION ................................................................................................................ 2
In re W.R. Grace & Co., 591 F.3d 164 (3d Cir. 2009) ............................................ 2
In re Condor Ins. Ltd., 601 F.3d 319 (5th Cir. 2010) ............................................... 3
In re Chesnut, 356 Fed. App’x 732, 2009 WL 4885018 (5th Cir. 12/17/2009) (per curiam) ........................................................................................................ 4
In re Paige, 584 F.3d 1327 (10th Cir. 2009) ............................................................ 5
Lone Star Fund V (U.S.), L.P. v. Barclays Bank PLC, 594 F.3d 383 (5th Cir. 2010)7
III. EQUITABLE POWERS ................................................................................................... 7
In re Bradley, 588 F.3d 254 (5th Cir. 2009) ............................................................ 7
In re Kirkland, 600 F.3d 310 (4th Cir. 2010) ........................................................... 9
In re Holloway, 2010 WL 1141623 (5th Cir. 3/15/10) .......................................... 10
IV. CONVERSION AND DISMISSAL ............................................................................... 11
In re 15375 Memorial Corp., 589 F.3d 605 (3d Cir. 2009) ................................... 11
American Prairie Const. Co. v. Hoich, 594 F.3d 1015 (8th Cir. 2010) ................. 11
In re Texas Wyoming Drilling, Inc., 422 B.R. 612 (Bankr. N.D. Tex. 2010) ....... 12
In re Edwards, 421 B.R. 757 (Bankr. N.D. Miss. 2009) ....................................... 15
In re Tender Loving Care Health Care Servs., Inc., 2009 WL 5218598 (Bankr. E.D. N.Y. 12/31/09) ........................................................................................... 16
In re Dumas, 419 B.R. 704 (Bankr. E.D. Tex. 2009) ............................................ 16
In re Premier General Holdings, Ltd., -- B.R. --- , 2010 WL 1489911 (Bankr. W.D. Tex. 2010) ................................................................................................. 17
In re Lots by Murphy, 2010 WL 1169785 (Bankr. S.D. Tex. 2010) ..................... 17
In re General Growth Properties, Inc., 409 B.R. 43 (Bankr. S.D.N.Y. 2009) ..... 17
V. EMPLOYMENT OF PROFESSIONALS .................................................................... 20
In re Bigler, LP, 422 B.R. 638 (Bankr. S.D. Tex. 2010) ...................................... 20
VI. THE AUTOMATIC STAY ............................................................................................ 20
DaimlerChrysler Fin. Serv. Am., LLC v. Jones (In re Jones), 591 F.3d 308 (4th Cir. 2010) .......................................................................................................... 20
Barner v. Saxon Mortgage Serv., Inc. (In re Barner), 597 F.3d 651 (5th Cir. 2010)21
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In re Jenkins, 2010 WL 1558678 (Bankr. N.D. Tex. 2010) .................................. 22
VII. SALE AND USE OF ESTATE PROPERTY ................................................................ 22
In re WestPoint Stevens, Inc., 600 F.3d 231 (2d Cir. 2010) .................................. 22
In re Reliant Energy Channelview, L.P., 594 F.3d 200 (3d Cir. 2010) ................. 24
In re Delco Oil, Inc., 599 F.3d 1255 (11th Cir. 2010) ........................................... 25
In re Chrysler, L.L.C., 576 F.3d 108 (2d Cir. 2009) .............................................. 26
In re Gulf Coast Oil Corp., 404 B.R. 407 (Bankr. S.D. Tex. 2009) ..................... 28
VIII. EXECUTORY CONTRACTS ....................................................................................... 30
In re Old Carco, L.L.C., 406 B.R. 180 (Bankr. S.D. N.Y. 2009) ......................... 30
IX. CLAIMS ........................................................................................................................... 32
Boston & Maine Corp. v. Mass. Bay. Transp. Auth., 587 F.3d 89 (1st Cir. 2009) 32
In re Rederford, 589 F.3d 30 (1st Cir. 2009) ......................................................... 33
Ogle v. Fid. & Deposit Co. of Md., 586 F.3d 143 (2d Cir. 2009) .......................... 34
In re FF Acquisition Corp., 423 B.R. 502 (Bankr. N.D. Miss. 2010) ................... 35
In re Babcock & Wilcox Co., 425 B.R. 266 (E.D.La. 2010) ................................. 36
In re Energy Partners Ltd., 422 B.R. 68 (Bankr. S.D. Tex. 2009) ....................... 36
In re Wingerter, 594 F.3d 931 (6th Cir. 2010) ....................................................... 39
B-Real, L.L.C. v. Rogers, 405 B.R. 428 (M.D. La. 2009) ..................................... 40
X. SUBORDINATION ......................................................................................................... 41
In re Seaquest Diving, LP, 579 F.3d 411 (5th Cir. 2009) ...................................... 41
XI. EXEMPTIONS ................................................................................................................ 41
In re Newman, --- B.R. ---, 2010 WL 1659518 (1st Cir. B.A.P. 4/26/10) ............. 41
In re Jackson, 593 F.3d 171 (2d Cir. 2010) ........................................................... 43
Fehmel v. Union State Bank (In re Fehmel), 2010 WL 1287618 (5th Cir. 2010).. 44
In re Greene, 583 F.3d 614 (9th Cir. 2009) ........................................................... 44
In re Norra, 421 B.R. 782 (Bankr.S.D.Tex., 2009) .............................................. 46
In re Chilton, --- B.R. ---, 2010 WL 817331 (Bankr. E.D. Tex. 3/5/10) .............. 46
XII. DISCHARGE AND DISCHARGEABILITY ............................................................... 47
In re Smith, 586 F.3d 69 (1st Cir. 2009) ................................................................ 47
In re Laughlin, 602 F.3d 417 (5th Cir. 2010) ......................................................... 47
In re Livingston, 2010 WL 1404530 (6th Cir. 4/9/10) ........................................... 48
Cassim v. Educ. Credit Mgmt. Corp. (In re Cassim), 594 F.3d 432 (6th Cir. 2010)48
Ojeda v. Goldberg, 599 F.3d 712 (7th Cir. 2010) .................................................. 49
R & R Ready Mix v. Freier (In re Freier), --- F.3d ----, 2010 WL 1838379 (8th Cir. 2010) .......................................................................................................... 50
In re Ormsby, 591 F.3d 1199 (9th Cir. 2009)......................................................... 50
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In re Findley, 593 F.3d 1048 (9th Cir. 2010) ......................................................... 52
In re Sabban, 600 F.3d 1219 (9th Cir. 2010) ......................................................... 52
In re Lopez, 2010 WL 1735503 (9th Cir. 4/29/10) ................................................ 53
Severo v. Comm’r of Internal Revenue, 586 F.3d 1213 (9th Cir. 2009) ................ 54
In re Wodark, 425 B.R. 834 (10th Cir. B.A.P. 2010) ............................................. 55
Torrez v. Eley, 2010 WL 1948679 (10th Cir. 5/17/10) .......................................... 56
In re Riebesell, 586 F.3d 782 (10th Cir. 2009) ....................................................... 57
In re Coady, 588 F.3d 1312 (11th Cir. 2009) ......................................................... 58
In re Harwood, -- B.R. -- , 2010 WL 1330898 (E.D.Tex. 2010) .......................... 59
In re Roberts, 2010 WL 376399 (W.D.Tex. 2010) ............................................... 59
In re Schenck, 2010 WL 1257744 (Bankr.E.D.La. 2010) ..................................... 60
In re Coleman, 560 F.3d 1000 (9th Cir. 2009) ....................................................... 60
XIII. PROPERTY OF THE ESTATE .................................................................................... 61
In re Baldwin, 593 F.3d 1155 (10th Cir. 2010) ...................................................... 61
XIV. AVOIDANCE POWERS CASES .................................................................................. 62
In re Plassein Int’l Corp., 590 F.3d 252 (3d Cir. 2009) ........................................ 62
In re QSI Holdings, Inc., 571 F.3d 54 (6th Cir. 2009) ........................................... 64
Contemporaneous Industries Corp. v. Frost, 564 F.3d 981 (8th Cir. 2009) .......... 64
United Rentals, Inc. v. Angell, 592 F.3d 525 (4th Cir. 2010) ................................. 65
Wells Fargo Home Mortgage, Inc. v. Lindquist, 592 F.3d 838 (8th Cir. 2010) ..... 66
In re TransTexas Gas Corp., 597 F.3d 298 (5th Cir. 2010) ................................... 67
Boyer v. Crown Stock Distribution, Inc., 587 F.3d 787 (7th Cir. 2009) ................ 68
Chase Manhattan Bank v. Taxel (In re Deuel), 594 F.3d 1073 (9th Cir. 2010)..... 70
In re Taylor, 599 F.3d 880 (9th Cir. 2010) ............................................................ 71
Old W. Annuity & Life Ins. Co. v. the Apollo Group, --- F.3d ---, 2010 WL 1753362 (11th Cir. 5/4/10) (per curiam) ................................................................... 71
California Pipe Recycling, Inc. v. Southwest Holding, Inc., 2010 WL 56053 (S.D. Tex. 2010) ................................................................................................. 73
Villarreal v. Showalter, 2009 WL 2432338 (Bankr. S.D. Tex. 8/5/2009) ............ 73
In re Supplement Spot, L.L.C., 409 B.R. 187 (Bankr. S.D. Tex. 2009) ................ 74
XV. CHAPTER 11 CASES .................................................................................................... 75
In re Kalikow, 602 F.3d 82 (2d Cir. 2010) ............................................................. 75
In re Phila. Newspapers, L.L.C., 599 F.3d 298 (3d Cir. 2010) .............................. 78
In re Pacific Lumber Co., 584 F.3d 229 (5th Cir. 2009) ........................................ 81
Grede v. Bank of N.Y. Mellon, 598 F.3d 899 (7th Cir. 2010)................................. 84
In re Pilgrim’s Pride Corp., 2010 WL 200000 (Bankr. N.D. Tex. 2010) ............ 84
Good v. RMR Investments, Inc., -- B.R. --, 2010 WL 1233553 (E.D. Tex. 2010) 85
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In re ASARCO LLC, 420 B.R. 314 (S.D.Tex., 2009) ............................................ 86
In re Superior Offshore Intern., Inc. 591 F.3d 350 (5th Cir. 2009) ....................... 88
In re Blast Energy Services, Inc., 593 F.3d 418 (5th Cir. 2010) ............................ 89
Matter of Greater Se. Cmty. Hosp. Found., Inc., 586 F.3d 1 (D.C. Cir. 2010) .... 90
In re Lancaster Family Trust, 2010 WL 1463007 (Bankr N.D.Miss. 2010) ........ 90
In re Erickson Retirement Communities, LLC, 425 B.R. 309 (Bankr.N.D.Tex. 2010) ................................................................................................................... 91
In re Moody National SHS Houston H, LLC, 426 B.R. 667 (Bankr. S.D. Tex. 2010) ................................................................................................................... 91
XVI. CHAPTER 13 CASES .................................................................................................... 92
In re Peaslee, 585 F.3d 53 (2d Cir. 2009) (per curiam) ......................................... 92
In re Howard, 597 F.3d 852 (7th Cir. 2010) .......................................................... 92
Fitch v. Wells Fargo Bank, 423 B.R. 630 (E.D.La. 2010) (“Fitch I”) .................. 92
Fargo Bank, -- F.Supp.2d -- , 2010 WL 1743202 (E.D.La. 2010) (“Fitch II”) .... 92
XVII. SECTION 108(a) AND PREEMPTION OF STATUTES OF REPOSE ................... 93
Stanley v. Trinchard, 579 F.3d 515 (5th Cir. 2009) ............................................... 93
XVIII. ROOKER FELDMAN .................................................................................................... 94
In re Madera, 586 F.3d 228 (3d Cir. 2009) ........................................................... 94
XIX. ESTOPPEL/RES JUDICATA ....................................................................................... 95
Williams v. Hainje, 2010 WL 1936269 (7th Cir. 2010) ......................................... 95
XX. RECOUPMENT/SET OFF ............................................................................................ 95
In re Beaumont, 586 F.3d 776 (10th Cir. 2009) ..................................................... 95
In re Lehman Brothers Holdings Inc., --- B.R. ---, 2010 WL 1783395 (Bankr. S.D.N.Y. 5/5/10) ....................................................................................... 96
XXI. DISCHARGE INJUNCTION ........................................................................................ 97
In re McClure, 420 B.R. 655 (Bankr.N.D.Tex. 2009) .......................................... 97
Rodriguez v. Countrywide Home Loans, Inc., 421 B.R. 341 (S.D.Tex. 2009) ..... 98
XXII. SALE/USE PROPERTY ................................................................................................. 99
In re Belk Properties, L.L.C., 421 B.R. 221 (Bankr. N.D. Miss. 2009) ................ 99
Sims v. Sunnyside Land, LLC, 425 B.R. 284 (W.D.La. 2010) .............................. 99
In re Camp Arrowhead, Slip Copy, 2010 WL 363773 (W.D. Tex. 2010) .......... 100
XXIII. MISCELLANEOUS ...................................................................................................... 101
Am. Bridge Products, Inc., 599 F.3d 1 (1st Cir. 2010) ........................................ 101
In re Crescent City Estates, L.L.C., 588 F.3d 822 (4th Cir. 2009) ....................... 102
In re Bodenheimer, Jones, Szwak, & Winchell L.L.P., 592 F.3d 664 (5th Cir. 2009) ................................................................................................................. 102
Harris v. Wittman (In re Harris), 590 F.3d 730 (9th Cir. 2009) .......................... 105
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In re Heritage Southwest Medical Group, P.A., 423 B.R. 809 (Bankr.N.D.Tex., 2010) ........................................................................................................ 107
In re Banner, 422 B.R. 608 (Bankr.N.D.Tex., 2009) .......................................... 108
Conway v. United States, 2010 WL 1056468 (E.D.Tex. 2010) .......................... 108
Vick v. NCO Financial Systems, Inc., 2010 WL 1330637 (E.D.Tex. 2010) ....... 109
Burns v. George Basilikas Trust, 599 F.3d 673 (D.C. Cir. 2010) ....................... 109
In re Village at Oakwell Farms, Ltd., -- B.R. --- , 2010 WL 1544295 (Bankr.W.D.Tex. 2010) ........................................................................... 110
In re Coyote Ranch Contractors, LLC, 400 B.R. 84 (Bankr. N.D. Tex. 2009) .. 110
In re Endeavour Highrise, L.P., 425 B.R. 402 (Bankr. S.D. Tex. 2010) ............ 111
In re Wiese, 552 F. 3d 584 (7th Cir. 2009) ........................................................... 111