| |
| |
| vol 17, num 1 | February 2019 |
| |
|
|
| |
|
|
|
|
|
| |
| Brighton Beach Surcharges, Part 1 |
| What expenses can an oversecured creditor tack on to its claim, and what expenses related to the sale of a mortgaged property can be surcharged against the claims of such a creditor? Judge Nancy Hershey Lord recently considered these questions in a contentious case involving property at 3126 Coney Island Avenue in Brooklyn — a valuable apartment building only a couple of blocks from the fabled Brighton Beach Boardwalk.
Introduction
The creditor was Wells Fargo, as trustee for a series of mortgage-backed securities. Wells Fargo brought a state court foreclosure action in January 2013 and obtained a judgment, dated June 8, 2016, ordering the property’s receiver to conduct a foreclosure sale. At that time, Wells Fargo was owed $3.76 million on the judgment itself, along with about $100,000 in interest.
|
| |
|
|
|
|
| |
|
| |
| Employing Special Counsel: Are Chapter 13 Debtors Special? |
| Does section 327(e) apply to a chapter 13 debtor’s request to employ special counsel? In In re Blume, 591 B.R. 675 (Bankr. E.D. Mich. 2018), the Bankruptcy Court for the Eastern District of Michigan concluded it does not.
In Blume, the debtors sought to employ special counsel to represent them in a pending state court matter regarding an allegedly fraudulent transfer of real property. The debtors sought to incur post-petition debt to employ special counsel and sought to grant special counsel a mortgage lien on their real estate to secure payment. The creditor (against whom the state court action was filed) objected to the application to employ special counsel and to the debtors’ motion to incur debt.
|
| |
|
|
|
|
| |
|
| |
| Sixth Circuit Affirms Sanctions for “Indisputable” Creditor Misconduct |
| Concluding long and contentious litigation, the Sixth Circuit Court of Appeals recently affirmed a determination by the United States Bankruptcy Court for the Southern District of Ohio awarding sanctions against a creditor and its counsel who engaged in sanctionable, bad-faith misconduct during the prosecution of a chapter 11 bankruptcy case.
In In re Bavelis, the debtor issued a $14 million pre-petition promissory note to Quick Capital (“Lender”), an entity owned by the debtor’s friend and business associate (“Lender Principal”). After the debtor filed its chapter 11 bankruptcy, he and Lender Principal became embroiled in litigation concerning their various business dealings.
|
| |
|
|
|
|
| |
|
| |
| Ninth Circuit Makes it Easley-er for Debtors to Recover Attorneys’ Fees when Appealing Willful Stay Violation Awards |
| In Easley v. Collection Service of Nevada, the U.S. Court of Appeals for the Ninth Circuit permitted debtors to recover attorneys’ fees and costs incurred while appealing fees awarded for a willful violation of the automatic stay pursuant to 11 U.S.C. § 362(k)(1).
Charles and Patricia Easley (the “Debtors”) filed a chapter 13 petition and listed Bennett Medical Services (“Bennett”) as an unsecured creditor. However, pre-petition, Bennett assigned its debt to Collection Service of Nevada (“CSN”). CSN was unaware of the Easley’s bankruptcy and instituted a post-petition collection action against Patricia. The parties entered into a payment plan that Patricia did not fulfill, which resulted in CSN garnishing her wages for several months.
|
| |
|
|
|
|
| |
|
| |
| Annual Spring Meeting Registration Open Now! |
|
Join the Ethics and Professional Compensation Committee at ABI's Annual Spring Meeting, one of the biggest insolvency events of the year! Mix professional development and networking at a variety of timely educational sessions, networking events, and optional programs — all in the heart of Washington, D.C.
This year, the Committee will be pairing with the Asset Sales Committee to host a session titled, Asset Sales, Not So Free and Not So Clear. Speakers for this session include:
- Peter Barret - Kutak Rock LLP; Richmond, VA
- Scott Cohen - Engelman Berger, PC; Phoenix
- Peter Roberts - Fox Rothschild LLP, Chicago
- Cynthia Romano - CR3 Partners LLC, New York
|
| |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
