Plaintiff subcontractors filed motions for summary judgment on the grounds that the chapter 7 debtor general contractor breached his fiduciary duties under Wisconsin's theft by contractor statute and the resulting debt was nondischargeable under section 523(a)(4). Plaintiffs also argued a previous state court default judgment should be given preclusive effect. The motions were denied because the matter had not been actually litigated in state court and the bankruptcy court was required to assess the debtor's state of mind while acting in a fiduciary capacity.
In re Rove, 505 B.R. 502(October 2013) -- Judge Kelley
Debtor was allowed to exempt interest in Dairy Cooperative equity account under § 522(d)(10)(E) because account was payable on account of age and was similar to a profit-sharing plan.
Order overruling debtors' post-confirmation claim objections.
Order denying debtor's post-confirmation claim objection.
In re Gerard, 495 B.R. 850(August 2013) -- Judge Kelley
Although the absolute priority rule continues to apply to individual chapter 11 debtors, debtor does not violate the rule by retaining exempt property.
Order denying motion to shorten notice period for failure to demonstrate cause that also discusses claimed "ministerial act" exception to automatic stay.
The US Department of Agriculture, Rural Housing Service's motion for relief from the automatic stay to effectuate a setoff of the chapter 7 debtors' tax refund against a dischargeable loan guarantee loss claim obligation was granted.
Order denying mortgagee's request for abandonment and fees.
In re McMahon Family L.P., 495 B.R. 411(July 2013) -- Judge Kelley
Debtor's tree farm operation probably did not qualify for Chapter 12, and Debtor's plan was not feasible.
Chapter 11 individual debtor filed counterclaims against the plaintiff bank for damages to the debtor's apartment complex while under the management and control of the bank. Bank's motion to dismiss counterclaims was granted because debtor, as guarantor, did not have standing under the guaranty; the claims against the bank belonged to the borrower, the debtor's LLC.