Recently in Bankruptcy Law Category

In Chapter 7 bankruptcy proceedings, the Bankruptcy Appellate Panel's (BAP) denial of plaintiff-creditor's motion to allow an informal proof of claim based on its prior filings as a putative secured creditor is affirmed as the BAP did not abuse its discretion in finding that: 1) plaintiff had ample notice of the likelihood that it would lose its status as a secured creditor, necessitating the filing of a proof of claim; 2) plaintiff's unexplained delay weighed against allowing plaintiff's informal proof of claim; and 3) the large dilution in the distribution to other creditors in this case was an appropriate consideration weighing against allowing plaintiff's claim. 

Read In re: Nowak, No. 08-3690

Appellate Information

Argued: October 13, 2009

Decided and Filed: November 13, 2009

Judges

Opinion by Circuit Judge Gilman

Counsel

For Appellant:  David A. Freeburg, McFadden & Freeburg Co., LPA., Cleveland, Ohio

For Appellee: Lydia Evelyn Spragin, Akron, Ohio

In an appeal from the Bankruptcy Court's order converting Debtor's bankruptcy case from Chapter 11 to Chapter 7 nunc pro tunc, the order is affirmed, where the equitable powers granted to the Bankruptcy Court under 11 U.S.C. section 105(a) include the power to enter such a conversion order.

Read Mitan v. Duval, No. 07-2111

Appellate Information

Submitted: December 4, 2008

Decided and Filed: July 17, 2009

Judges

Opinion by Judge Gibbons

Dissent by Judge Clay

Counsel

For Appellant:

Keith J. Mitan, Mitan & Associates, West Bloomfield, MI

For Appellees:

Mark R. Fox, Fraser Trebilcock Davis & Dunlap, P.C., Lansing, MI

In an appeal from an order distributing the proceeds of life insurance policies owned by a receivership estate on a pro rata basis, the order is affirmed where plaintiff's alleged diligence in securing a beneficial interest was not cause for him to take priority when the interest he actually acquired was no better than the interests acquired by supposedly less-diligent claimants.

Read Quilling v. Trade Ptnrs., Inc., No. 08-2328

Appellate Information

Argued: June 17, 2009

Decided and Filed: July 15, 2009

Judges

Opinion by Judge Graham

Counsel

For Appellant:

Lincoln J. Knauer, Husch Blackwell Sanders LLP, Springfield, MO

For Appellee:

Bruce S. Kramer, Borod & Kramer, P.L.C., Memphis, TN

In a fraudulent conveyance action in Bankruptcy Court, summary judgment for Defendants is affirmed where 11 U.S.C. section 546(e) is not limited to publicly traded securities but also extends to transactions, such as the leveraged buyout at issue, involving privately held securities.

Read QSI Holdings, Inc. v. Alford, No. 08-1176

Appellate Information

Argued: March 4, 2009

Decided and Filed: July 6, 2009

Judges

Opinion by Judge Norris

Counsel

For Appellants:

John K. Cunningham, White & Case LLP, Miami, FL

For Appellees:

Boyd A. Henderson, Miller Johnson, Grand Rapids, MI