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Judge Janet S. Baer

18 B 13481, 18 A 00212
Debtor George Burciaga filed an adversary complaint against chapter 7 trustee Alex D. Moglia, seeking a determination that certain severance pay is not property of the estate under 11 U.S.C. § 541(a)(1) but, rather, constitutes excluded post-petition earnings under 11 U.S.C. § 541(a)(6). The parties subsequently filed cross-motions for judgment on the pleadings. The Debtor argued that the severance pay is not property of the estate because his receipt of that pay was contingent on his execution of a separation agreement and his subsequent compliance with the post-petition conditions outlined therein. The Trustee argued that the severance pay is property of the estate because it is based on both the Debtor’s pre-petition employment and pre-petition termination from that employment. Applying the U.S. Supreme Court’s "sufficiently-rooted test" in Segal v. Rochelle, 382 U.S. 375 (1966), the Court found that the severance pay is both pre-petition property of the bankruptcy estate and post-petition earnings for services excluded therefrom and concluded that a fair allocation of the pay between the estate and the Debtor is 50/50. As such, the Court granted in part and denied in part both parties’ motions for judgment on the pleadings.

Judge Donald R. Cassling

18 B 05186

Judge Jack B. Schmetterer

Judge Jacqueline P. Cox

On remand from the district court, after a trial, findings were made regarding an Intervenor's assertion that she had been denied due process when she was not served in an adversary proceeding where trust assets were found to be part of a bankruptcy estate in 2010.  The court found that the Intervenor waived her objection because she waited too long to bring it up and by participating in the litigation through her agents, her brother, Richard Sharif, the Debtor, and her attorney, who she sued for legal malpractice for not asserting certain claims in the underlying matter.

Judge Deborah L. Thorne


Judge LaShonda A. Hunt

14bk008893, 16ap00195
At issue is whether the law in this Circuit holds that only unpaid new value can be used by a creditor to reduce preference liability under 11 U.S.C. § 547(c)(4)(B). The court concludes the answer to that question is yes.

Judge Timothy A. Barnes

Upon a motion seeking enforcement of this court’s confirmation order and damages arising from the alleged violation by the debtors’ prepetition surety, filed by successor to the purchaser of assets in the above-captioned bankruptcy cases, the court having previously determined that the surety violated the injunction and release set forth in the court’s confirmation order and the debtors’ plan, and after a trial to determine damages, held: The movant has established that it is entitled to damages stemming from the surety’s repeated pursuit of claims against the movant in the state court.  The court, therefore, awards actual damages for reduced property value, legal costs, consulting costs and project management costs.  The court declines to award punitive damages.  The motion remains GRANTED and this decision concludes the motion.

Judge A. Benjamin Goldgar

In re Bruno L. Garzon
December 3, 2018

18 B 26026