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2010 NORTON BANKRUPTCY LAW SEMINAR MATERIALS

CHAPTER 11 RECENT DEVELOPMENTS (PART I)

By Hon. Leif M. Clark

TABLE OF CONTENTS

I. ESTATE ADMINISTRATION 1
A. Automatic Stay 1
Brown, et. al. v. Jevic, et. al., 2009 WL 2342731 (3rd Cir. Jul. 31, 2009) 1
St. Paul Fire & Marine Ins. Co. v. Labuzan, et. al., 2009 WL 2501122 (5th Cir. Aug. 18, 2009) 1
Sternberger, et. al. v. Johnston, III, 582 F.3d 1114 (9th Cir. 2009) 3
In re Gold & Honey, Ltd., 410 B.R. 357 (Bankr. E.D.N.Y. 2009) 4
In re Petters Co., Inc., 2009 WL 3316881 (Bankr. D. Minn. Aug. 31, 2009) 6
B. Sales 7
In re Chrysler LLC, 576 F.3d 108 (2nd Cir. 2009) 7
In re Chrysler LLC, et. al., 405 B.R. 79 (Bankr. S.D.N.Y. 2009) 9
In re Dewey Ranch Hockey, LLC, 406 B.R. 30 (Bankr. D. Ariz. 2009) 10
In re Gen. Motors Corp., et. al., 407 B.R. 463 (Bankr. S.D.N.Y. 2009) 12
In re Metaldyne Corp., et. al., 409 B.R. 661 (Bankr. S.D.N.Y. 2009) 14
In re Dewey Ranch Hockey, LLC, 406 B.R. 30 (Bankr. D. Ariz. 2009) 15
C. Executory Contracts and Unexpired Leases 17
Valley Educ. Found., Inc. v. Eldercare Properties Ltd. (In re Eldercare Properties Ltd.), 568 F.3d 506 (5th Cir. 2009) 17
In re Empire Equities Capital Corp., 405 B.R. 687 (Bankr. S.D.N.Y. 2009) 18
In re Old Carco, LLC (f/k/a Chrysler LLC), et. al., 406 B.R. 180 (Bankr. S.D.N.Y. 2009) 19
In re Foothills Texas, Inc., et. al., 408 B.R. 573 (Bankr. D.Del. 2009) 21
In re AbitibiBowater, Inc., et. al., 2009 WL 3459399 (Bankr. D. Del., Oct. 27, 2009) 23
D. Employment of Professionals, Fees, and Sanctions 24
In re Energy Partners, Ltd., et. al., 409 B.R. 211 (Bankr. S.D. Tex. 2009) 24
Ginsberg v. Evergreen Sec., Ltd. (In re Evergreen Sec., Ltd.), 570 F.3d 1257 (11th Cir. 2009) 26
Ogle v. Fid. & Deposit Co. of Maryland (In re Agway, Inc.), 2009 WL 3645651 (2d. Cir., Nov. 5, 2009) 28
In re The Aspen St. Corp., 405 B.R. 767 (Bankr. E.D. Pa. 2009) 28
In re Kentucky Processing Co., 409 B.R. 451 (Bankr. E.D. Ky. 2009) 29
E. Trustees and Examiners 31
Swzak v. Earwood, Winchell (In re Bodenheimer, Jones, Szwak, & Winchell LLP), 2009 WL 5103546 (5th Cir., Dec. 29, 2009) 31
F. Collective Bargaining: Benefits and Pensions 32
In re Consol. Freightways Corp. of Delaware, 564 F.3d 1161 (9th Cir. 2009) 32
G. Dismissal or Conversion of the Bankruptcy Case 33
In re 15373 Mem'l Corp., et. al., 2009 WL 4912136 (3rd Cir., Dec. 22, 2009) 33
In re Clemente, 409 B.R. 288 (Bankr. D.N.J. 2009) 33
In re Gen. Growth Properties, Inc., 409 B.R. 43 (Bankr. S.D.N.Y. 2009)35
Other Issues 38
Biltmore Assocs., LLC v. Twin City Fire Ins. Co., et. al. (In re Biltmore Assocs., LLC), 572 F.3d 663 (9th Cir. 2009) 38
In re W.B. Care Ctr., LLC, 2009 WL 3451066 (Bankr. S.D. Fla., Oct. 26, 2009)40
II. PROPERTY OF THE ESTATE 42
A. Use of Estate Property 42
Vess Oil Corp. v. SemCrude, L.P., and Eaglwing, L.P. (In re SemCrude, L.P., et. al.), 418 B.R. 98 (Bankr. D. Del. 2009) 43
B. Avoidance / Preference Actions 44
Globe Mfg. Corp. d.b.a. Globe Elastics Co, Inc. v. Buckley (In re Globe Mfg. Corp. d.b.a. Globe Elastics Co, Inc.), 567 F.3d 1291 (11th Cir. 2009) 44
QSI Holdings, Inc., et. al. v. Alford (In re QSI Holdings, Inc.), 571 F.3d 545 (6th Cir. 2009) 45
Brandt v. B.A. Capital Co., L.P., et. al. (In re Plassein Intern. Corp. f/k/a PL Liquidating Corp.), 2009 WL 4912137 (3rd Cir. 2009) 46
Official Comm. of Unsecured Creditors of TOUSA, Inc., et. al. v. Citicorp North America, Inc., et. al. (In re TOUSA, Inc.), 406 B.R. 421 (Bankr. S.D. Fla. 2009) 46
Hutson v. M.J. Soffee Co. (In re Nat'l Gas Distribs., LLC.), 412 B.R. 758 (Bankr. E.D.N.C. 2009) 48
Hutson v. United States of America, Dept. of the Army (In re Nat'l Gas Distribs., LLC), 415 B.R. 209 (Bankr. E.D.N.C. 2009) 49
Wahoski v. Am. & Efrid, Inc. and Xymid, LLC (In re Pillowtex Corp.), 416 B.R. 123 (Bankr. D. Del. 2009) 50
C. Appeals: Equitable Mootness and Other 51
Tech. Lending Partners, LLC, et. al. v. San Patricio County Cmty. Action Agency (In re San Patricio County Cmty. Action Agency), 2009 WL 2025467 (5th Cir. Jul. 14, 2009) 51
Mitan v. Duval, et. al. (In re Mitan), 573 F.3d 237 (6th Cir. 2009) 51
D. Other Issues 53
Harvard Secured Creditors Liquidation Trust v. IRS (In re Harvard Indus., Inc.), 568 F.3d 444 (3rd Cir. 2009) 53
LH 1440 LLC v. Lehman Commercial Paper, Inc., Lehman Bros. Holdings, Inc., & State Street Bank and Trust Co. (In re Lehman Commercial Paper, Inc.), 416 B.R. 392 (Bankr. S.D.N.Y. 2009) 55
III. CLAIMS 56
A. Administrative Expenses and Priority Claims 56
California Self-Insurers' Sec. Fund v. Lorber Indus. of California, et. al. (In re Lorber Indus. of California), 564 F.3d 1098 (9th Cir. 2009) 56
B. Secured Claims and Liens 58
Hoffman, et. al. v. Lloyd (In re Lloyd), 572 F.3d 999 (9th Cir. 2009) 58
C. Proof of Claim: Allowance, Disallowance and Amendments 59
Granite Reinsurance Co. v. Acceptance Ins. Co., et. al. v. Granite Reinsurance Co., Ltd. (In re Acceptance Ins. Cos., Inc.), 567 F.3d 369 (8th Cir. 2009) 60
In re Marchfirst, Inc., 573 F.3d 414 (7th Cir. 2009) 61
IASM Capital, LP v. Ames Dep't Stores, Inc. (In re Ames Dep't Stores, Inc.), 2009 WL 2972510 (2d Cir., Sept. 18, 2009) 62
D. Priority, Subordination, and Setoff 63
Seaquest Gen. Holdings, LLC, et. al. v. S&J Diving, Inc., et. al. (In re Seaquest Diving, LP), 2009 WL 2450680 (5th Cir. Aug. 12, 2009) 63
Wawel Savings Bank v. Jersey Tractor Trailer, Inc. & Yale Factors NJ, LLC (In re Jersey Tractor Trailer Training, Inc.), 2009 WL 2750458 (3rd Cir. Sept. 1, 2009) 64
In re Lehman Bros. Holdings Inc., 404 B.R. 752 (Bankr. S.D.N.Y. 2009) 65
Arrow Oil & Gas, Inc., et. al. v. SemCrude, L.P., et. al. (In re SemCrude, L.P., et. al.), 407 B.R. 112, (Bankr. D. Del. 2009) & Mull Drilling Co. Inc., et. al. v. SemCrude, L.P., et. al. (In re SemCrude, L.P., et. al.), 407 B.R. 82 (Bankr. D. Del. 2009) 66
E. Derivative and/or Direct Claims 68
Boucher, et. al. v. Shaw, et. al., 572 F.3d 1087 (9th Cir. 2009) 68
F. Unsecured Claims 69
In re Touch Am. Holdings, Inc., et. al., 409 B.R. 712 (Bankr. D. Del. 2009) 69
G. Valuation, Estimation, Releases, Choice of Law and Other Issues 70
In re STNL Corp., et. al. v. Centre Ins. Co. (In re STNL Corp.), 2009 WL 1758759 (9th Cir. 2009) 70
Jafari, et. al. v. Wynn Las Vegas, LLC & Desert Palace Inc. d/b/a Caesar's Palace (In re Jafari), 569 F.3d 644 (7th Cir. 2009) 72
Am. Home Mortgage Holdings, Inc., 411 B.R. 181 (Bankr. D. Del. 2009) 73
IV. PLAN CONFIRMATION 74
A. Classification and Voting Issues 74
Schaefer, et. al. v. Superior Offshore Int'l, Inc. (In re Superior Offshore Int'l, Inc.), 2009 WL 4798851 (5th Cir., Dec. 14, 2009) 74
In re DBSD North America, Inc., 2009 WL 3491060 (Bankr. S.D.N.Y., Oct. 26, 2009) 75
B. Other Issues 75
JP Morgan Chase Bank, N.A. v. Charter Commc'ns Operating, LLC & CCO Holdings, LLC (In re Charter Commc'ns, et. al.), 409 B.R. 649 (Bankr. S.D.N.Y. 2009) 76
V. POST-CONFIRMATION 76
A. Jurisdiction and Standing 76
GAF Holdings, LLC v. Rinaldi, et. al. (In re Farmland Indus., Inc.), 567 F.3d 1010 (8th Cir. 2009) 76
Hamlin Props., Ltd. v. Pami September, LLC (In re Hamlin Props. Ltd.), 413 B.R. 540 (Bankr. N.D. Tex. 2009) 77
B. Mootness, Appeals, and Due Process 78
In re The Pacific Lumber Co., Scotia Pacific Co., LLC, 2009 WL 3082066 (5th Cir. Sept. 29, 2009) 78
Search Mkt. Direct, Inc., & Magnet Media, Inc. v. Jubber & ConsumerInfo.com (In re Paige), 2009 WL 3584940 (10th Cir. Nov. 3, 2009) 81
C. Discharged Claims 84
United States of America v. Apex Oil Co., Inc., 2009 WL 2591545 (7th Cir. Aug. 25, 2009) 84
Rederford v. US Airways, Inc., 2009 WL 4756417 (1st Cir., Dec. 14, 2009) 85
D. Other Issues 86
United Air Lines, Inc. v. Regional Airports Improvement Corp. & UMB Bank, N.A. (In re United Air Lines, Inc.), 564 F.3d 873 (7th Cir. 2009) 86
VI. PROCEDURAL AND MISCELLANEOUS ISSUES 87
A. Evidence and Discovery 87
Jasco Tools, Inc. v. Dana Corp. (In re Dana Corp.), 574 F.3d 129 (2nd Cir. 2009) 87
In re New Century TRS Holdings, Inc., 407 B.R. 558 (Bankr. D. Del. 2009) 88
B. Reconsideration, Relief from Judgment 90
Smith v. Duffey, 576 F.3d 336 (7th Cir. 2009) 90
C. Other Issues 90
Mercantile Nat'l Bank of Indiana, et. al. v. James Rose (In re Rose), 2009 WL 3189198 (7th Cir., Oct. 7, 2009) 90
Heyman v. Reliance Reinsurance Co., et. al. (In re G-I Holdings, Inc.), 2009 WL 3416166 (3rd Cir. Oct. 26, 2009) 91

 

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