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Judge Timothy A. Barnes - Opinions

Description Date Issued
In re Elton Tabor

15 B 26544
Upon the United States Trustee’s motion for sanctions brought pursuant to 11 U.S.C. § 105, held:  The United States Trustee has shown by a preponderance of the evidence the need to address the circumstances discussed herein in a proceeding under 11 U.S.C. § 105.  The motion is granted and counsel is sanctioned in the matter set forth herein.

04/11/2018
In re Stainless Sales Corporation

17 B 03148
Upon the application for administrative expense brought by prepetition assignee for the benefit of creditors on behalf of its counsel, held: The assignee is entitled to compensation for its counsel under 11 U.S.C. § 503(b)(4), the provision affording administrative expenses for professional services rendered for a superseded custodian. Upon application of the standards relating thereto, the application is, therefore, GRANTED in the manner set forth herein.

03/30/2018
In re Direct Media Power, Inc.

16 B 36934
Upon the motion for civil contempt brought by a creditor, alleging that the debtor and debtor’s manager violated bankruptcy court orders by transferring property of the bankruptcy estate without court authority, held: The movant has established under section 105 of the Bankruptcy Code clear and convincing evidence of civil contempt by the debtor and the debtor’s manager by proving that the nonmoving parties knowingly violated court orders. The motion is, therefore, GRANTED.

03/29/2018
In re Talecia Gilliam

17 B 18368
Upon the application of the debtor’s counsel under the court’s flat fee agreement, wherein the debtor’s counsel filed a form chapter 13 plan with a modification to the priority distributions of creditors to elevate the priority of counsel’s payments, held:  The debtor’s counsel has violated the rules applicable to disclosure regarding agreements pertaining to its own compensation and, therefore, no longer qualifies to seek the flat fee.  The application is DENIED in part; specifically, counsel’s compensation is reduced as a sanction for failure to disclose the agreement.  The application is also continued with respect to a further determination regarding reasonableness.

03/28/2018
In re Kimberly Yvonne Williams-Hayes

17 B 27961
Upon the application of the debtor’s counsel under the court’s flat fee agreement, wherein the debtor’s counsel filed a form chapter 13 plan with a modification to the priority distributions of creditors to elevate the priority of counsel’s payments, held:  The debtor’s counsel has violated the rules applicable to disclosure regarding agreements pertaining to its own compensation and, therefore, no longer qualifies to seek the flat fee.  The application is DENIED in part; specifically, counsel’s compensation is reduced as a sanction for failure to disclose the agreement.  The application is also continued with respect to a further determination regarding reasonableness.

03/28/2018
In re Anthony M. and Virginia J. Montemurro

17 B 10230
Upon the application of a state court-appointed receiver for allowance and payment of administrative expenses, held:  The receiver has established that, on the petition date, it was a custodian for the purposes of payment under 11 U.S.C. § 543(c)(2) and priority of payment under 11 U.S.C. § 503(b)(3)(E), and thus is entitled to assert a claim under both provisions.  As the receiver seeks payment from estate assets, the court applies the standard set forth in 11 U.S.C. § 503(b)(3)(E).  However, the receiver has not yet established that its claim meets that statute’s standards.  As a result, the receiver’s application is set for further hearing.

02/13/2018
In re Stainless Sales Corporation

17 B 03148
Upon the application for administrative expense brought by a party to whom a prepetition assignee of the debtor’s assets for the benefit of creditors became obligated, held: while the movant is not entitled to seek reimbursement under the provision affording custodians administrative expenses, the movant is entitled to protection as a party to whom a custodian became obligated.  The court sets such protection as a right to expense reimbursement from the estate with administrative priority under 11 U.S.C. § 503(b).  The application is, therefore, GRANTED.

12/22/2017
Walden Investments Group, LLC v. First Nations Bank, et al. (In re Anthony M. and Virginia J. Montemurro)

17 B 10230, 17 A 00401
Upon the motions of two adversary defendants to dismiss the complaint for failure to state a claim, held:  The complaint states a plausible claim for declaratory judgment of the plaintiff’s interest, as prepetition receiver of property of the estate, in such property.  As a result, each motion is DENIED.Upon the motions of two adversary defendants to dismiss the complaint for failure to state a claim, held:  The complaint states a plausible claim for declaratory judgment of the plaintiff’s interest, as prepetition receiver of property of the estate, in such property.  As a result, each motion is DENIED.

12/21/2017
In re Jennifer Robinson

17 B 12405
Upon a tax purchaser’s motion for relief from stay in a chapter 13 case, arguing that the expiration of the state-law period for redeeming taxes prior to the debtor filing for bankruptcy case gives cause to modify the stay, held: The tax purchaser has not established the necessary elements of section 362(d)(1) or (d)(2) to be granted relief from stay. Because the tax purchaser has not obtained a tax deed, under Illinois law, the debtor remains the owner of the underlying real property even though the redemption period has expired prior to the commencement of the debtor’s case. The debtor therefore has the right to attempt to treat the tax purchaser’s claim and the debtor’s property in a chapter 13 plan. The existence of that right, under the facts at bar, trumps the tax purchaser’s desire to bolster its claim postpetition by acts proscribed by the automatic stay. The motion for relief from stay is, therefore, DENIED.

12/04/2017
Barry A. Chatz, not individually but as the Chapter 7 Trustee of the Estate of Gurrie C. Rhoads, v. Alice Rhoads Living Trust Dated June 1, 2012 and Alice Rhoads (In re Gurrie Rhoads)

15 A 00819, 14 B 17886
Upon the chapter 7 trustee’s complaint under 11 U.S.C. § 363(h) seeking to sell all interests in real property held in a living trust in which the estate also has an interest, held: The trustee has established each element of section 363(h) to sell the real property free of the other interests therein. Therefore, judgment will be rendered in favor of the trustee and the trustee is authorized to sell the property.

09/08/2017
In re Trina D. Whitlock-Young

17 B 05030
Upon the motion of a debtor statutorily without automatic stay protection to enforce the co-debtor stay, held: The debtor has standing to enforce the co-debtor stay regardless of whether or not she is protected by the automatic stay. As the postpetition judicial sale violated the co-debtor stay, the sale is void. The debtor has, however, failed to demonstrate an entitlement to damages. As a result, the debtor’s motion is GRANTED insofar as it seeks to have the sale and subsequent acts related thereto determined to be void but, in all other respects, is DENIED.

08/10/2017
Norman B. Newman, solely as Liquidating Trustee of the World Marketing Liquidating Trust, successor in interest to the Official Committee of Unsecured Creditors of World Marketing Chicago, LLC, et al. , v. Associated Bank, National Association

15 B 32968,16 A 00019

Upon the “no evidence” motion for summary judgment brought by Associated Bank, National Association, held: The movant has not established grounds for summary judgment under Federal Rule of Civil Procedure 56 as it has not established the absence of genuine issue of material fact in dispute.  There is a genuine issue of material fact concerning the debtors’ solvency on the date they closed a loan with the movant, and movant is therefore not entitled to judgment as a matter of law.  The motion is, therefore, DENIED.

07/31/2017
Patrick S. Layng, United States Trustee v. Marisa Garcia (In re Marisa Garcia)

14 B 14023, 16 A 00387
The matter before the court is whether, at the request of the debtor, the court should stay an adversary proceeding, brought by the United States Trustee, seeking a denial of discharge under 11 U.S.C. § 727. The debtor argues that the existence of parallel criminal investigations means that continuing the adversary is imprudent, as that might subject her to conflicting choices—namely to invoke a Fifth Amendment privilege against self-incrimination and face possible negative inferences arising therefrom, or to defend the adversary complaint and risk information therein being used in a criminal indictment. Held: In light of there being no actual pending criminal proceeding, the relevant standards as applied to the facts herein as they presently exist weigh in favor of continuing with the adversary. The motion to stay is, therefore, DENIED without prejudice.

07/19/2017
In re Kimball Hill, Inc., et al.

08 B 10095
Upon the Motion for Entry of an Order (I) Enforcing Confirmation Order; (II) Directing Dismissal of State Court Claims; (III) Awarding Damages; and (IV) Granting Related Relief, brought by successor to the purchaser of assets in the above-captioned bankruptcy cases, held:  The movant has established that the claims brought in the state court actions are precluded by the confirmation order entered in this case.  The motion is, therefore, GRANTED as set forth in the attached Memorandum Decision.  A separate hearing on damages will follow.

03/20/2017
In re World Marketing Chicago, LLC

15 B 32968
Upon the application from a class of former employees seeking allowance of an administrative expense claim for being terminated by the debtors in the above-captioned chapter 11 cases without notice as required by federal law and the liquidating trustee’s objection thereto, held: Despite the liquidating trustee’s claim that the debtors were liquidating and thus were excepted from the federal notice requirement, notice was required. As a result, the federal termination period applies and the damages relating thereto are postpetition damages. As a result, the application is GRANTED. The terminated employees’ administrative claim is allowed in an amount to be determined at a later hearing.

02/24/2017
Susan K. Cervac v. Kimberly A. Littman (In re Kimberly A. Littman)

11 B 38875, 12 A 00155
Upon remand from the District Court for the Northern District of Illinois reinstating the plaintiff’s motion for summary judgment, held:  The plaintiff has established grounds for summary judgment under Federal Rule of Civil Procedure 56.  The debtor’s admissions establish that the debt she owed to the plaintiff arose when she, as trustee for an express trust, misappropriated funds from the trust to the detriment of the plaintiff, a beneficiary of the trust.  Such debt is nondischargeable under 11 U.S.C. § 523(a)(4).  The plaintiff’s motion for summary judgment is, therefore, GRANTED as to the statutory elements of 11 U.S.C. § 523(a)(4) and all alternative counts are mooted thereby.  The court abstains from hearing the only remaining aspect of the complaint—the value of the plaintiff’s claim.

12/21/2016
In re Elk Grove Village Petroleum, LLC, et al.

12 B 49658
Upon the partial remand from the District Court for the Northern District of Illinois of the motion of the state taxing authority seeking monetary adequate protection following a sale of the debtors’ assets under 363(f), held:  The District Court directs this court to determine the issues of quantification and recovery of the state taxing authority’s adequate protection claim.  Because the state taxing authority has failed to demonstrate either a realizable claim or a source of recovery, the remaining aspects of the state taxing authority’s motion are DENIED.  In accord, all the remaining aspects of the secured lender’s competing motion are, therefore, GRANTED and the chapter 7 trustee is authorized to pay the remaining proceeds to the secured lender.

12/15/2016
Monty Titling Trust I v. Torrance R. Granrath (In re Torrance R. Granrath)

15 B 18583, 15 A 00826
Upon a creditor’s amended complaint seeking to deny discharge for the debtor on two counts under 11 U.S.C. § 727(a)(2)(A) and (a)(4)(A), wherein the creditor alleged that the debtor made prohibited prepetition transfers and failed to disclose certain assets on his bankruptcy petition, held: In regard to the 11 U.S.C. § 727(a)(2)(A) count, the creditor has not proven by a preponderance of the evidence that the debtor acted with actual intent to hinder, delay, or defraud creditors with respect to the alleged prepetition transfers. In regard to the 11 U.S.C § 727(a)(4)(A) count, the creditor has not proven by a preponderance of the evidence that the debtor acted with fraudulent intent when failing to disclose certain assets on his bankruptcy petition. As a result, the debtor will not be denied a discharge on the grounds alleged. Judgment is entered in favor of the debtor on all counts.

12/05/2016
In re Ace Track Co., Ltd.

15 B 13819
Upon the Amended Motion for Order Granting Protection under 11 U.S.C. § 1522, brought by a creditor in the above-captioned chapter 15 case, held:  The motion raises serious concerns regarding the propriety of actions purportedly taken by the debtor in the chapter 15 case with respect to assets in the United States.  However, the motion is predicated on section 1522 of the Bankruptcy Code, which is inapplicable, and appears to seek no relief other than by declaration of the extent of the law.  As a result, insofar as the Memorandum Decision clarifies the extent of the law, the motion is GRANTED.  Otherwise, the motion is DENIED without prejudice.

09/13/2016
In re Bluberi Gaming Technologies Inc., et al.

16 B 05364
On the motion of creditor and contract counterparty seeking an order of this court compelling the contractual performance of debtor in foreign proceeding under 11 U.S.C. § 365(n)(4), held:  While, pursuant to the terms of the recognition order, 11 U.S.C. § 365 applies in the foreign proceeding, the application of 11 U.S.C. § 365(n)(4) is no different in such circumstances than it would be in a case under another chapter of the Bankruptcy Code.  Such application requires only such performance as provided in the contract, and the relief requested by movant is not provided for in the contract.  The motion is, therefore, DENIED.

08/04/2016

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