The Attorney for Defendants in the District Court filed a lien on proceeds in a related State case and attempted to jump the line in terms of priority. When the District Court stopped him he sought relief in the 7th Circuit. The Appellate Court not only disagreed with his actions but actually sanctioned him for...Read More
Debtor Hospital filed an adversary complaint claiming that a prepetition government claim should be subject to the Automatic Stay. The Bankruptcy Court agreed citing 11 U.S.C. 362(a)(6). District Court reversed in part. The 7th Circuit Reversed again.Read More
The 7th Circuit found that the phrase “for cause” as used in the Bankruptcy Code embraces conduct that, even if not a violation of required procedures, avoids repayment of a debt without an adequate reason. In other words, the case was dismissed because the Schwartzes failed to pay as much of their indebtedness as they...Read More
The 7th Circuit points out that under Indiana law a buyer who has received non-conforming goods cannot sue the seller for negligent misrepresentation to avoid the Economic Loss Doctrine, which limits it to contract remedies for purely economic losses. There is no basis for transforming a breach of contract claim into a tort claim to...Read More
Despite the fact that "disadvantaged business" and a "disadvantaged individual" refers to women and minorities, an owner of any race or gender may seek a "waiver." Dunnet sought but was denied a waiver. As a result, Dunnet brought a discrimination suit claiming that the denial was a violation of its equal protection rights under the...Read More
As stated by the Supreme Court: requiring Bankruptcy Attorneys to bear the costs of their fee-defense litigation under 330(a)(1) "creates no disincentive to bankruptcy practice." Hear that Bankruptcy lawyers? You're on your own.Read More
The Court stated conclusively that a Debtor in a Chapter 7 Bankruptcy may not void a junior mortgage lien under §506(d) even when the value of the senior mortgage lien exceeds the value of the Debtor's home if the junior claim is secured by a lien and allowed under §502 of the Code.Read More
On February 9, 2015 the Bankruptcy Court for the Northern District of Illinois, Eastern Division ruled in the case of Brandt vs. Rohr-Alpha, a case involving fraudulent transfers and whether certain debts can be avoided in Bankruptcy.Read More
Foreclosure defense practice has become a veritable cottage industry over the past decade and it is common for Clients to expect their lawyer to do more than fight. They want to delay "by any means necessary." But the Courts still regard the law as a genteel profession. What Clients see as run of the mill...Read More
In Kmart v. Footstar and Liberty Mutual the 7th Circuit Court of Appeals was presented with 2 primary issues: Is an indemnification clause triggered when an employee acts outside the scope of his duties? Does an insurance company have a duty to defend the lawsuit arising from such an incident?Read More
