Chapter 13 trustee objected to confirmation of modified plan on grounds it did not provide for payment of all projected disposable income. The Court overruled the objection, finding the cash surrender value increase of the debtors' whole life insurance policy over the life of the plan was not disposable income to be paid as an additional dividend to unsecured creditors.
In re Lawrence and Lorine Hartung, Case No. 12-21920, Universal Restoration Services v. Debtors, Adv. No. 12-2359 (January 2014) -- Judge M.D. McGarity
Plaintiff home restoration contractor filed motion for summary judgment on grounds that prior state court judgment against chapter 13 debtors for failure to pay insurance proceeds after repairs were made to their residence should be given preclusive effect. The motion was granted because the previous trial and appellate court findings were sufficient to find the obligation nondischargeable under section 523(a)(4).
In re Ivano DiPietrantonio, Case No. 12-33921, A-1 Services, Inc. v. Debtor, Adv. No. 12-2949, Assured Power, Inc. v. Debtor, Adv. No. 12-2950 (November 2013) -- Judge M.D. McGarity
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 Brian & Kelly Vieaux, Case No. 12-36663, K&D Masonry LLC v. Debtors, Adv. No. 13-2196 (November 2013) -- Judge M.D. McGarity
Plaintiff subcontractor's motion for summary judgment on grounds that chapter 13 debtor prime contractor breached his duties under Wisconsin's theft by contractor statute and the resulting debt was nondischargeable under section 523(a)(4) was denied. Standards established by Supreme Court required the court to make a finding regarding the debtor's state of mind while acting in a fiduciary capacity, a determination ill-suited for summary judgment.
In re Jeremy & Hillary Hollis, Case No. 13-20484 (July 2013) -- Judge M.D. McGarity
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.
In re Joseph Miller, Case No. 12-32487, Layton State Bank v. Debtor, Adv. No. 13-2045 (July 2013) -- Judge M.D. McGarity
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.
In re Lowell E. Davis, Case No. 12-21160, Debtor v. City of Milwaukee, Adv. No. 12-2321 (April 2013) -- Judge M.D. McGarity
Material facts in dispute precluded summary judgment in debtor's adversary proceeding to recover transfer of non-homestead property in real estate tax foreclosure allegedly done in violation of the automatic stay and for less than reasonably equivalent value.
In re Amanda Jaeger-Jacobs, Case No. 12-20021, Ryan Jacobs v. Debtor, Adv. No. 12-2227 (April 2013) -- Judge M.D. McGarity
Although the chapter 7 debtor was assigned payment of joint credit card obligations under the parties' Marital Settlement Agreement, after the debtor stopped making payments and the default was reported negatively on her former spouse's credit report, the former spouse made the credit card payments. The court rejected the debtor's argument that, because the creditor had not sued or threated legal action against her former spouse, she was not liable to reimburse her former spouse for his "voluntary" payments. The debtor's responsibility to hold her former spouse harmless became a nondischargeable obligation under sec. 523(a)(15) when the judgment incorporating the MSA was granted.
In re 4848, LLC, Case No. 12-36114 (April 2013) -- Judge M.D. McGarity
Court granted relief from automatic stay under sec. 362(d)(3)(A) because single asset real estate debtor's proposed chapter 11 plan did not have reasonable possibility of being confirmed within reasonable time. Additional factor establishing "cause" for relief under sec. 362(d)(1) was prepetition stay waiver within forbearance agreement between debtor and secured lender.
In re Donald Kalmerton, Case No. 12-20544, Dempsey Law Firm, LLP v. Debtor, Adv. No. 12-2279 (November 2012) -- Judge M.D. 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.