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 Pamela S. Hollis

05 B 12554

Receiver appointed in District Court litigation sought authority to sell Chapter 11 Debtor's interest in a limited liability company to one of the LLC members. Third party objected and submitted an offer. Receiver changed tactics and filed a motion seeking approval of bid procedures. The LLC objected and engaged in extensive briefing with the third party over whether the LLC's Operating Agreement was an executory contract. Parties also disputed whether the right of first refusal held by the other members of the LLC was enforceable in bankruptcy. HELD: The Operating Agreement of this particular LLC is not an executory contract. The right of first refusal is neither an ipso facto clause nor a restraint on assignment, and is enforceable. The Receiver's motion for approval of bid procedures is granted.

Judge A. Benjamin Goldgar

04 B 38235

In re: Guy E. Miotto
March 29, 2006

06 B 70052

Judge Jack B. Schmetterer

In re Neil Snowden
April 14, 2006

Judge Jacqueline P. Cox

02 B 08699, 04 A 01322

Creditor’s Trust created under a confirmed chapter 11 plan moved for partial summary judgment on its adversary proceeding seeking avoidance under 11 U.S.C. § 547(b) of three pre-petition transfers the debtor made to the defendant. The defendant argued that the transfers fell within the “ordinary course of business” and “new value” exceptions of 11 U.S.C. § 547(c) and were not subject to avoidance. Finding that the “ordinary course of business” exception applied even though the payments were technically late according to a new contract negotiated during the preference period, the court denied the motion for summary judgment and entered judgment for the defendant on its motion for summary judgment.

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