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Judge A. Benjamin Goldgar

In re Lorenzo J. Brent
September 29, 2011

06 B 06197

Judge Pamela S. Hollis

Lakewood entered into an agreement to outsource its box fan manufacturing to Chicago American Manufacturing (CAM). The agreement included remedies for CAM if Lakewood failed to purchase the forecasted amounts of box fans within a certain time period. After an involuntary petition was filed against Lakewood, the Trustee rejected the agreement and brought suit against CAM to enjoin further manufacturing as well as selling any of the unpurchased box fans. The court first determined that the agreement was ambiguous, then interpreted the ambiguous provisions using parol evidence, and concluded (among other findings) that CAM's remedies included a license to manufacture and sell box fans using Lakewood's patents and trademarks. Rejection of the agreement did not terminate that license, and all box fans that CAM manufactured and sold were covered by the license granted in the agreement. Judgment for the defendant on all counts.

Defendant brought a motion for summary judgment on Plaintiffs' adversary complaint which sought to except certain debts from discharge under 11 U.S.C. §§ 523(a)(2)(A), (a)(2)(B), & (a)(6). Defendant sought a determination that Plaintiffs' complaint was barred by res judicata because of a prior action brought in state court. The court ruled that Plaintiffs were judicially estopped from denying a final judgment had been entered in the state court as Plaintiffs had engaged in supplementary proceedings, treating the judgment as final. Summary judgment was granted in favor of Defendant on Counts I and II. Defendant did not succeed on Count III because Plaintiffs did receive a judgment which could support a willful and malicious injury.

Judge Jack B. Schmetterer

In re Sarah DiGregorio
September 28, 2011

Judge Jacqueline P. Cox

09 B 05868,10 A 02239

The Court granted Trustee’s Motion to Dismiss Plaintiff’s adversary complaint pursuant to Federal Rule of Civil Procedure 12(b)(6), and separately on res judicata and collateral estoppel grounds. The Court found that the Plaintiff failed to sufficiently plead her claims for conversion and declaratory judgment, and that some of the claims raised in the complaint are barred by the doctrines collateral estoppel and res judicata.

09 B 22180,10 A 01051

 Plaintiff filed an adversary proceeding seeking to deny Debtor Steven Artstein (“Debtor”) a discharge under 11 U.S.C. §§ 727(a)(2) and 727(a)(4). The Court entered judgment in favor of Debtor on both counts. On Count I, the Court found that Debtor’s failure to disclose his home in his SOFA did not amount to fraud when the home was listed in Debtor’s Schedules A and D. As to Count II, the Court gave credence to Debtor’s testimony regarding certain undisclosed claims and after viewing the errors and omissions in their entirety, the Court held that Debtor did not knowingly and fraudulently make false oaths.

10 B 26209,1 0 A 02055

In this adversary proceeding, plaintiff sought a determination that a certain debt was nondischargeable pursuant to 11 § U.S.C. 523(a)(6), which provides an exception to discharge for a debt “for willful and malicious injury by the debtor to another entity or to the property of another entity.” The debt consisted primarily of an attorney’s fee award in connection with an order of protection case in state court. Because this debt arose out of the willful and malicious injury caused by the debtor, the court ruled in favor of the plaintiff and held that the attorney’s fees are nondischargeable.

Judge Eugene R. Wedoff