Johnson Family Trust filed separate motions seeking to hold the purported trustee for the debtor-trust in contempt of court for failure to comply with a subpoena and seeking sanctions against the trustee and the debtor-trust for filing a frivolous bankruptcy petition. The Court found that contempt was not warranted because the case was dismissed before compliance was required, rendering compliance with the subpoena moot . The Court also found that imposing sanctions on the debtor and the trustee was not warranted, as the evidence presented by Johnson Family Trust—specifically, conduct that did not occur before the court—was not sufficient to prove that either party had knowledge that the filing was frivolous.
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Opinions
Effective January 1, 2017, Orders in the United States Bankruptcy Court for the Northern District of Georgia designated by the Court as "opinions" will be transmitted to the Government Publishing Office (GPO) and made available to the public at no cost. To view these opinions, click HERE to be transferred to GPO site.
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Court denied debtor's motion to expunge debtor's bankruptcy case, but having found the case initiated without authorization, the Court dismissed the case as void ab initio.
Court granted in part and denied in part the Chapter 7 trustee's motion to amend complaint, finding that two amendments to add prepetition fraudulent transfers and one amendment to add an alternative theory of relief related back to the filing of the complaint, but finding that one amendment to add a prepetition fraudulent transfer neither related back to the filing of the complaint nor was equitably tolled.
Order Granting Objection to Claim; creditor’s claim for pre-petition attorneys’ fees denied for failure to comply with O.C.G.A. § 13-1-11); entered September 30, 2014
INTENDED FOR PUBLICATION
Order granting in part Defendants’ motion for judgment on the pleadings; discussing Chapter 7 Trustee’s standing to raise claims on behalf of third-party creditors; FRCP 12(c) standards); entered September 25, 2014
INTENDED FOR PUBLICATION
Order denying trustee's motion for summary judgment in a preference suit due to lack of evidence or admitted facts to support the conclusion that the defendant received more from the allegedly preferential prepetition payment than it would have received without having received the payment
Court granted debtor's motion to supplement the record and denied, in relevant part, creditor's motion to strike, finding that the proposed evidence was material to the Court's inquiry, that the creditor would be given an opportunity to cross examine any witness and present rebuttal evidence, and that, accordingly, the creditor was not unduly prejudiced
Honorable Wendy L. Hagenau
Order on Defendant’s motion to reconsider the Court’s Order that Debtor was entitled to a claim of damages under the Georgia Commercial Code. Debtor filed an adversary proceeding seeking turnover of a vehicle and damages for violation of the automatic stay. The vehicle was sold prepetition. The Court found the transaction between the Debtor and the Defendant was neither a sale nor a pawn, but a secured transaction governed by the UCC. The Court found the Debtor’s interest terminated with the sale of the vehicle; thus, the vehicle was not subject to turnover and no stay violation occurred. However, Defendant did not follow the UCC provisions related to disposal of collateral. Consequently, the Court ruled the Debtor had a potential claim for damages under the UCC.
Honorable Barbara Ellis-Monro, Chief Judge
The Chapter 7 Trustee objected to Lessor’s proof of claim, which asserted a secured claim in excess of $3 million for unpaid rent that had accrued and been reduced to judgment prepetition. The Trustee argued the claim should be disallowed under § 502(d) because the judgment lien was avoidable. The Court rejected this argument because the Lessor voluntarily abandoned any lien rights it held. The Trustee also contended that the claim should be limited by the cap in § 502(b)(6), which applies when a claim results from termination of a lease. The Lessor contended that the cap does not apply because its lease was never terminated under state law. The Court concluded that a lease is “terminated” for purposes of § 502(b)(6) when it terminates under applicable law or when the debtor breaches the lease and abandons the property to the landlord. Under this definition, termination of the lease at issue occurred when the Lessor obtained a writ of possession; therefore the rent cap applied to the claim.
Honorable Paul W. Bonapfel
Order denying Defendant's motion for summary judgment that student loan debt is excepted from discharge under 523(a)(8). Disputes of material fact with respect to prongs 2 and 3 of the Brunner test preclude entry of summary judgment. The Debtor's failure to participate in an income contingent repayment program, standing alone, does not demonstrate a lack of good faith.