On June 9, 2014, while the Bankruptcy Bar waited with bated breath, Justice Thomas delivered the long-anticipated opinion of the unanimous Court in Executive Benefits Insurance Agency v. Arkinson. While the Supreme Court answered the question of how to proceed when confronted with a Stern claim, it left the question of consent “for another day.” […]
Closing the Gap: The Supreme Court Holds that Bankruptcy Courts Should Enter Proposed Findings of Fact and Conclusions of Law for Stern Claims
Fully Secured Creditor May Still Face Preference Exposure
A recent, troubling decision by the United States Bankruptcy Court for the Southern District of California in Gladstone v. Bank of America (In re Vassau) concluded that alleged preferential payments made to a fully secured creditor might be recovered by a Chapter 7 Trustee from a junior, undersecured lienholder, even though the junior lienholder never […]
5th Circuit Bankruptcy Summary: In re Harry P. Goaz, No. 13-10282 (5th Cir. March 19, 2014) (per curiam)
Rolex sued Harry P. Goaz in federal court for various causes of action related to Rolex’s allegation that Goaz sold and distributed fake Rolexes. Before the District Court was able to rule on a Rolex summary judgment motion, Goaz filed bankruptcy. The District Court abated the case, pending the outcome of the bankruptcy case. Rolex […]
5th Circuit Bankruptcy Summary: In re Mark Alan Frost, No. 12-50811 (5th Cir. March 5, 2014)
Debtor Mark Alan Frost filed bankruptcy, claimed his homestead as exempt and then sold it. Texas law provides that, to maintain homestead protection, a homeowner must reinvest sale proceeds in another homestead within six months. Frost failed to do that. The Bankruptcy Court held that the funds therefore were non-exempt and should be returned to […]
Dissent Written About In re BP RE, L.P., No. 12-51270 (5th Cir. Fed. 28, 2014)
This is not a decision by the Fifth Circuit, but rather a dissent written by Judge Higginson and joined by Judges Stewart, Jolly, Davis, Dennis and Graves. They are dissenting from the Court’s decision not to take a previous matter back up en banc. The prior decision was decided on November 1, 2013. (Click here […]
5th Circuit Bankruptcy Summary: In re Michael Vernon Shankle, No. 13-60252 (5th Cir. Feb. 7, 2014)
A divorce court entered a decree dividing up the assets of Michael Vernon Shankle and Dianne Shankle. Michael Vernon Shankle, contrary to the terms of the divorce decree, withdrew all funds from an investment account and spend them for his own benefit. An Arkansas state court later found Michael in contempt for failing to divide the […]
Farmer Favoritism: Statutory Protections for Creditors in Agricultural Bankruptcy Cases
Jason Binford and I recently published an article in the Texas Tech Law Review entitled, Farmer Favoritism: Statutory Protections for Creditors in Agricultural Bankruptcy Cases. The article discusses several different types of special interest statutes that could allow particular creditors to recover on their claim ahead of other creditors. Parties in bankruptcy cases without an understanding […]
5th Circuit Bankruptcy Summary: In re Fish & Fisher, Inc., No. 13-60368 (5th Cir. Feb. 7, 2014)
This case deals with the 12(b)(6) dismissal standard under the Twombly and Iqbal Supreme Court decisions. M&F alleged that it obtained a perfected security interest in accounts receivable of Fish & Fisher. Fish & Fisher later obtained a significant arbitration award against one of its clients and hired Coxwell to hold the award in trust and to distribute it […]
5th Circuit Bankruptcy Summary: In re Green Hills Development Co., L.L.C., No. 12-60784 (5th Cir. Feb. 3, 2014)
Green Hills Development executed a promissory note to Credit Union Liquidity Services (CULS) for $14.5 million, secured by certain real estate. Green Hills Development later fell behind on the note and failed to pay the balance at maturity. Green Hills Development sued CULS in Texas state court for various causes of action, generally seeking to […]
5th Circuit Bankruptcy Summary: In re R.E. Loans, L.L.C., No. 13-10468 (5th Cir. February 5, 2013) (per curiam)
R.E. Loans (“REL”) raised funds to make real estate secured loans to real estate developers. In July 2007, REL entered into a senior secured credit facility with Wells Fargo. In November 2007, REL and its member-investors entered into an “Exchange Offering” wherein member-investors exchanged their equity interest in REL for junior secured notes issued by […]