Most Important Opinions

1. Bankruptcy – Pre-petition Assignment – House Fire – Insurance Proceeds – Building Contractor 

   Belfor USA Group, Inc. v. Helms After fire destroyed the debtors’ home, the husband alone signed an agreement to assign the couple’s homeowners’ insurance proceeds to the plaintiff-contractor. However, both debtors signed the construction contract. The bankruptcy trustee cannot avoid the assignment of the debtor-wife’s half of the insurance proceeds.

2. Bankruptcy – Set-off – Social Security – Overpayment – Retroactive Benefits Interception – Improvement of Position 

   In re Goodman Less than 90 days before the debtor filed her bankruptcy petition, the Social Security Administration intercepted retroactive benefits which had been awarded to the debtor. Although the SSA did this to set off a pre-existing overpayment to the debtor, the set-off impermissibly improved the SSA’s position within 90 days before the filing of the bankruptcy petition. 11 U.S.C. § 553(b).

3. Bankruptcy – Unsecured Creditors – Separate Classes – Unfair Discrimination – Student Loans 

   In re Sutton The debtor failed to show that it was fair to discriminate among unsecured creditors by separating them into student loan creditors - who would be paid in full - and other unsecured creditors - who would be paid only 3.8 percent on their claims.

4. Civil Practice – Federal Jurisdiction – Removal — Class Action – Amount in Controversy – Fiber Cement Siding 

   Hardig v. Certainteed Corp. Even if the plaintiff class were limited to the 501 homes in the Fieldstone Farms subdivision in Indian Trail, the materials alone for replacing the allegedly defective siding would cost $4,000 per home, and plaintiffs seek treble damages under the N.C. Unfair and Deceptive Trade Practices Act; therefore, the amount in controversy for the materials alone exceeds $6 million.