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 Thomas M. Lynch

In re Plichta
September 5, 2018

17-82147
Creditor’s motion to dismiss case under 11 U.S.C. § 707(b)(1), (2) and (3) denied.

Judge Timothy A. Barnes

In re Larry Shelton
September 14, 2018

17bk35941
Upon an objection to a chapter 13 plan brought by the standing chapter 13 trustee assigned to the matter, wherein the trustee asserted that the plan’s reduction of payments to secured creditors in order to allow debtor’s counsel fees to be paid earlier in the case both violated the express requirements of the Bankruptcy Code and was not proposed in good faith, held: The plan’s treatment of secured creditors violates the express prohibition in the Bankruptcy Code against such treatment. As a result, the plan is not confirmable. Further, such improper treatment benefits counsel alone and does not treat the debtor or the debtor’s other creditors fairly. As a result, the plan has not been proposed in good faith and is not confirmable. The trustee’s objection is sustained and confirmation of the plan is denied.

15bk33812, 16ap00511
Upon a complaint under 11 U.S.C. § 727, wherein denial of the debtor’s discharge is sought for the debtor making false oaths, namely denial of prior ownership of real property, tools and employment at the meeting under 11 U.S.C. § 341, held: While the plaintiff fails to establish the required elements of 11 U.S.C. § 727 in relation to the tools and employment, the plaintiff has carried his burden regarding the prior ownership of the real property. As a result, the debtor’s discharge is denied.

Judge Janet S. Baer

15 B 28696, 16 A 00026
Plaintiff Tillman Enterprises, LLC (“Tillman”) filed a three-count adversary complaint against Todd S. Horlbeck (“Horlbeck”), seeking a determination that a debt owed to it by Horlbeck for alleged securities violations and fraud was not dischargeable pursuant to 11 U.S.C. §§ 523(a)(19), (a)(2)(A), and (a)(2)(B).  After Tillman amended the complaint and Horlbeck’s motion to dismiss was denied, the parties’ filed cross-motions for summary judgment.  No material facts were in dispute.  Tillman argued that Horlbeck had violated securities laws by reporting inflated account values while managing a hedge fund in which Tillman had invested.  In addition, Tillman alleged that Horlbeck misrepresented and omitted material information while the parties negotiated the settlement of those securities claims.  Horlbeck admitted to reporting inaccurate values but contested whether Tillman could prove the requisite elements of its claims.  After establishing that it had jurisdiction to determine liability for the violation of securities laws under § 523(a)(19), the Court found that Tillman had failed to prove that Horlbeck violated any securities laws.  As such, the Court granted Horlbeck’s motion for summary judgment under § 523(a)(19) and denied Tillman’s cross-motion.  Turning to §§ 523(a)(2)(A) and (a)(2)(B), the Court first found that Tillman could maintain claims under both subsections because they were based on separate alleged misrepresentations.  On the merits, the Court found that Horlbeck had failed to disclose liabilities on a financial statement, and that he had misrepresented information about a regulatory investigation and his management of the hedge fund.  Tillman, in turn, had relied on those misrepresentations and omissions while deciding to enter into a settlement agreement and extend credit under a promissory note.  Thus, the Court found that the debt Horlbeck owes under the settlement agreement and promissory note is not dischargeable under §§ 523(a)(2)(A) and (a)(2)(B), granted Tillman’s motion for summary judgment, and entered judgment in its favor.

Judge Carol A. Doyle

In re Timothy Shannon
September 7, 2018

18 B 04116

Judge Jack B. Schmetterer

 17 B 19689

Judge Deborah L. Thorne

In re George Peake
August 15, 2018

18 B 16544

Judge Jacqueline P. Cox

16  B 17113, 17 A 00072
The court ruled in favor of the defendant on allegations that transfers made in satisfaction of merchant cash advance obligations were preferences or constructively fraudulent transfers.

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