BANKRUPTCY LAW CASES

• In Re: Barroso-Herrans
• In re: Slatkin
• In re: Straightline Invs., Inc.
• Reusser v. Wachovia Bank, N.A.

U.S. 1st Circuit Court of Appeals, May 07, 2008
In Re: Barroso-Herrans, No. 07-1757
A bankruptcy court's approval of a settlement presented by the bankruptcy trustee is affirmed where the trustee's reading of certain of debtors' claimed exemptions, as limited to a $4,000 share of proceeds from each of two underlying lawsuits, was objectively reasonable. Read more...

U.S. 9th Circuit Court of Appeals, May 06, 2008
In re: Slatkin, No. 06-56334
Summary judgment in favor of bankruptcy trustee, avoiding under 11 U.S.C. section 548(a) and California Civil Code section 3439.04(a) certain transfers made by the debtor during his operation of a Ponzi scheme, is affirmed where: 1) the bankruptcy court did not abuse its discretion in denying appellants-investors' motion for a continuance to conduct further discovery; 2) investors' right to a jury trial was not violated by the grant of summary judgment; 3) the bankruptcy court properly determined that debtor acted with the actual intent to "hinder, delay, or defraud" his creditors; 4) a determination that debtor was not a "stockbroker" under the Bankruptcy Code was proper; and 5) prejudgment interest was properly awarded. Read more...

U.S. 9th Circuit Court of Appeals, May 08, 2008
In re: Straightline Invs., Inc., No. 05-15979
A judgment under 11 U.S.C. section 549(a) avoiding the transfer to appellant of corporate bankruptcy debtor's accounts receivable which had a face value of approximately $200,600 is affirmed over appellant's claims that: 1) the transfer of accounts receivable was not an avoidable transfer because there was no depletion or diminution of debtor's estate; 2) the transfer was an outright sale of receivables in the ordinary course of business, and the defenses of recoupment and earmarking should apply to bar recovery by the trustee; and 3) even if it was avoidable, the wrong measure of recovery was awarded. Read more...

U.S. 9th Circuit Court of Appeals, May 08, 2008
Reusser v. Wachovia Bank, N.A., No. 06-35850
In an action against a bank involving allegations that plaintiffs' were wrongfully evicted and their property improperly foreclosed upon, dismissal of plaintiffs' claims is affirmed where: 1) plaintiffs' section 1983 claims constituted a de facto appeal of a state court decision and were therefore barred by the Rooker-Feldman doctrine; and 2) plaintiffs' collateral attack on a bankruptcy court's jurisdiction was unavailing, and thus, defendant-bank did not violate 11 U.S.C. section 362 in foreclosing on plaintiffs' property. Read more...