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Fischer v. Bank of America, N.A. (December 2012) -- Judge Kelley

Based on Rooker-Feldman doctrine and doctrine of claim preclusion, Chapter 13 Debtors' attempt to strip mortgage lien denied when state court previously determined that mortgage was in first position.

 


12-20115-pp, Lockett (December 2012) -- Judge Pepper

Order denying payment of unclaimed funds


In re Washington (December 2012) -- Judge Kelley

Court allows late-filed Chapter 13 claim for creditor without notice under three limited conditions.

 


In re Archdiocese of Milwaukee (December 2012) -- Judge Kelley

Court denied creditors' committee's request for derivative standing to bring fraudulent transfer claim against Debtor's parishes. 


In re Archdiocese of Milwaukee (December 2012) -- Judge Kelley

Court denied creditors' committee's request to (1) assert alter ego claims against Debtor's parishes; and (2) substantively consolidate the parishes with the Debtor.


McDonald v. Little Limestone, Inc. (November 2012) -- Judge Kelley

Trustee could recover preferential payment made by Debtor contractor to subcontractor despite Wisconsin Statute creating trust fund in amounts paid by owners to contractors, because between date that Debtor received payment from owner and check to subcontractor cleared Debtor's bank, Debtor's bank account went into a negative balance.  Under the "lowest intermediate balance test," this destroyed the trust fund.  Subcontractor's giving of a lien release did not satisfy the contemporaneous exchange defense, but whether payment was in ordinary course of business could not be decided on summary judgment, based on the materials submitted.


Gerard v. Gerard (November 2012) -- Judge Kelley

State court jury's determination that debtor committed slander of title was given preclusive effect, and judgment debt was nondischargeable as a willful and malicious injury under § 523(a)(6).

 


In re Donald Kalmerton, Case No. 12-20544, Dempsey Law Firm, LLP v. Debtor, Adv. No. 12-2279 (November 2012) -- Judge McGarity

State court's $500 sanction award and findings regarding frivolous and abusive nature of chapter 7 debtor's state law counterclaim against plaintiff did not encompass the requisite specific intent to cause willful and malicious injury under section 523(a)(6), precluding summary judgment.


In re Thongta (October 2012) -- Judge Kelley

 

Chapter 13 Trustee is not required to provide Rule 3002.1 Notice of Final Cure Payment to Creditor that has received relief from stay and withdrawn its claim. If Trustee does provide such a Notice, the Creditor does not lose any rights by failing to respond.

 


In re Helminiak Confections of Wisconsin, Case No. 10-20464, Asset Renewal Services v. Bardes Plastics, Adv. No. 11-2846 (October 2012) -- Judge McGarity

Court recommended granting summary judgment dismissing adversary proceeding based upon ordinary course of business and new value defenses to the preference action.  The Court took into account the seasonal variations in the debtor's business cycle when considering the parties' ordinary course of business.


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