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.

Subscribe to All Opinions

Judge A. Benjamin Goldgar

In re Daniel Bauman
March 4, 2014

11 B 32418

Judge Jack B. Schmetterer

14 B 01509

13 B 18729

12 B 48247

Bankruptcy No. 13 B 28022

Judge Jacqueline P. Cox

12 B 05364
In this Chapter 11 proceeding, the Court denied Movants’ Motion for Leave to File a Claim Against Trustee’s Counsel For Fraudulent Inducement.  Movants sought leave to sue the trustee’s counsel for statements allegedly made regarding a Skilled Living Facility Certificate owned by Movant, Morris Healthcare.  In denying the request, the Court held that the Movants offered insufficient legal grounds and no evidence to carry their burden to demonstrate that their claim is not without foundation, i.e., that their claim is well-founded.

09 B 49094, 11 A 2395
This matter involves the former principals of Brown’s Chicken & Pasta (“Debtor”), the franchisor of Brown’s Chicken restaurants in the Chicago area. Following the dissolution of the principals’ business relationship, litigation ensued and a judgment was entered against the Debtor in the amount of $882,000,which led to the Debtor’s bankruptcy filing in 2009.
At issue in this adversary proceeding is what property was sold in a section 363 sale of Debtor’s assets. In Count I, the Plaintiff accuses the Defendants of conversion of equipment purchased in the sale, valued at $25,582.25.  The Defendants claims that although the equipment was mistakenly included in Debtor’s schedules, it had previously been sold, and therefore, was not property of the bankruptcy estate. In Count II, Plaintiff requests declaratory relief, arguing that it properly assumed and accepted a 15-year franchise agreement between the Debtor and franchisee, Joli Inc. The Defendants counter that a subsequent 15-month franchise agreement is the operative document which was been terminated in accordance with its terms.
As to Count I, the Court ruled that Plaintiff justifiably relied on the representation in Schedule B that the equipment listed therein belonged to the Debtor. The Court noted that Schedule B was never amended to reflect the purported change in ownership, and concluded that the equipment was sold to Plaintiff in the section 363 sale.
As to Count II, the Court expressed doubts as to the authenticity of the shorter, 15-month franchise agreement, and concluded that the 15-year term franchise agreement had been properly assumed and assigned by the Plaintiff in accordance with the requirements of the Bankruptcy Code.

Pages