Opinions

The District of Northern Illinois offers a database of opinions for the years 1999 to 2013, listed by year and judge. For a more detailed search, enter the keyword or case number in the search box above.

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Judge Jacqueline P. Cox

11 B 40944 (jointly administered)

In this memorandum opinion, the Court denied confirmation of the Debtor’s Amended Plan of Reorganization. The Court noted that to satisfy the Bankruptcy Code’s requirement that the Debtor’s Plan be fair and equitable, a plan must propose an interest rate adequate to assure the realization of the Bank’s claim. In this case, the Court determined that the interest rate advanced by the Debtor did not sufficiently capture the risk that the Debtor would not satisfy the Bank’s claim. The Court also determined that the Plan was not feasible because the Debtor failed to prove that the property would increase in value enough to give the Debtor sufficient equity to facilitate refinancing at the end of 7 years to fund a balloon payment to the Bank. The Court also granted the Bank’s request for relief from the automatic stay because the Debtor failed to show that there is a reasonable possibility of a successful reorganization.

Judge Jack B. Schmetterer

11 B 43629, 12 A 00165

11 B 33575

Judge A. Benjamin Goldgar

12 B 26800, 12 A 01464

Judge Donald R. Cassling

12 B 11838

Judge Timothy A. Barnes

09 B 17582, 12 A 00799
Upon the Defendants’ motion to dismiss the Chapter 7 trustee’s adversary complaints for failure to state a claim upon which relief may be granted and the statute of limitations contained in 11 U.S.C. § 546(a)(1), held: (i) the commencement of the adversary proceedings on May 11, 2012 was timely as Congress clearly intended to afford a bankruptcy trustee no less than a year to bring avoidance actions, while at the same time limiting the time period to no more than three years; and (ii) an additional year afforded to the trustee runs from the date an interim trustee begins service under section 701, if that appointment occurs within two years of the order for relief and if that interim trustee becomes the permanent trustee by operation of section 702(d).  Motion to dismiss denied.

08 B 10095, 10 A 00998
Upon the Defendant’s motion for summary judgment in the adversary proceeding brought by the Chapter 11 Liquidation Trustee to avoid and recover fraudulent and preferential transfers and disallow claims, held: (i) without evidence supporting an implied contract theory, the Liquidation Trustee could not establish that the transfer was on account of an antecedent debt, an element of the preference avoidance claim; but (ii) for many of the same reasons that the preference avoidance claim fails, genuine factual disputes exists as to whether an indirect benefit defense exists as to the fraudulent transfer avoidance claim.  Motion for summary judgment granted in part and denied in part.

Judge Janet S. Baer

12 B 12318

The debtors filed a motion to avoid a judicial lien pursuant to section 522(f)(1)(A). The parties did not dispute that the debtors could avoid the lien. The sole issue–one on which there is no binding case law in the Seventh Circuit–was whether the debtors must complete their chapter 13 plan and receive a discharge before the lien is avoided and the creditor is required to release the lien. Agreeing with the majority view, the Court found that in light of the creditor’s objection, the lien avoidance will not be effective until the debtors make all plan payments and obtain a discharge. Accordingly, the Court conditionally granted the debtors’ motion to avoid the judicial lien, provided that they completed their chapter 13 plan and received a discharge in the bankruptcy case.

Judge Eugene R. Wedoff

In re: Brenda J. Payton
November 5, 2012

12 B 29448

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