News & Resources

Case Summaries

[11/17] Busseto Foods, Inc. v. Laizure
In a bankruptcy case in which debtor had embezzled and subsequently repaid funds from his employer, and employer had later been required to return those funds to the bankruptcy estate, dismissal of employer's complaint alleging that it had a nondischargeable claim against debtor is reversed where a creditor that is required to return to the trustee a payment from the debtor made within the ninety-day preference period still maintains a claim against the debtor for a nondischargeable claim.

[11/13] In re: Lanning
For purposes of calculating the "projected disposable income" of an above-median Chapter 13 debtor under amendments to the bankruptcy code effected by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the circuit court adopts the "forward-looking approach," wherein a Chapter 13 debtor's six-month, pre-petition "disposable income" (as defined by statute) is presumed to be the debtor's "projected disposable income" for purposes of establishing the monthly sum that the debtor must commit to repayment of unsecured creditors in order to advance a confirmable payment plan and overcome objections to it. Also, the amount of projected disposable income is rebuttable upon a showing of special circumstances at the time of plan confirmation.

[11/13] Mosier v. Callister, Nebeker & McCullough
In a suit brought by the trustee of the bankruptcy estate of a nonprofit organization against a law firm and two of its attorneys alleging professional negligence, breach of fiduciary duty, vicarious liability, breach of the covenant of good faith and fair dealing, fraud, and civil conspiracy, summary judgment for defendants is affirmed where: 1) the district court did not err by imputing the conduct of certain offers to the nonprofit; 2) it correctly applied the doctrine of in pari delicto in holding as a matter of law that the nonprofit's misconduct, as evidenced by the actions of its officers and directors, was greater than defendants' fault in failing to counsel the nonprofit; and 3) there was no error in applying the doctrine against a trustee in bankruptcy.

[11/06] In the Matter Of: Entringer Bakeries Inc.
In a bankruptcy trustee's action to avoid two pre-petition transfers made by debtor to creditor-bank, judgment for trustee is affirmed and award vacated where: 1) the "earmarking" doctrine did not apply and the payments were therefore impermissible preferential transfers; and 2) the entire transfer, not just a part of it, could be avoided under section 547(c)(2) of the bankruptcy code.

[11/06] Moglia v. Pac. Employers Ins. Co.
In a bankruptcy-related action in which debtor's trustee sought partial release of letters of credit issued by debtor to defendants-insurers, and defendants in turn sought to enforce an arbitration provision in the policies, trustee's appeal of a district court order compelling arbitration is dismissed for lack of jurisdiction where: 1) the trustee could be required to sign the arbitrator's hold-harmless agreement; 2) an appeal from the order to sign the agreement was interlocutory in nature, and appellate review was not available; and 3) the court could not review the order under the doctrine of pendent appellate jurisdiction.

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