Moses v. Cashcall, Inc. : The federal policy favoring arbitration is premised on the enforcement of contractual provisions between assenting parties; however, adversary proceedings such as this one were created by the Bankruptcy Code for the benefit ultimately of creditors of the estate; therefore, this adversary proceeding is not encompassed by the parties’ arbitration agreement.
Branch Banking & Trust Co. v. Hanson Aggregates Southeast, LLC : A subcontractor or supplier’s interest in the property being improved arises at the time the first materials are furnished, not at the time the notice of the lien is served. Therefore, the Bankruptcy Code’s automatic stay does not prevent subcontractors and suppliers from filing notice post-petition for material or labor that was supplied pre-petition.
Educational Credit Management Corp. v. Follett Even though the guarantor’s right of reimbursement is separate from the debt on the student-loan note itself, the record does not include an assignment of the guarantor’s right of reimbursement to respondents, who engaged in post-discharge collection efforts against the defendant-debtor.
In re: ESA Environmental Specialists Inc. A $1.375 million transfer by debtor, an environmental engineering firm, to a Miller Act surety within 90 days of debtor’s bankruptcy filing was not an avoidable preference under 11 U.S.C. § 547(b) because it was a transfer for new value, and the 4th Circuit affirms summary judgment for the insurance company in this suit filed by the bankruptcy trustee.
Ross v. R.A. North Development Inc. A district court did not err in dismissing a bankruptcy trustee’s adversary action against two real estate development companies and several of their sales and marketing affiliates on a claim that they jointly engaged in a scheme to sell properties at inflated prices in subdivisions in North and South Carolina and are liable for contribution for debtor realty company’s liabilities under the Interstate Land Sales Full Disclosure Act; the 4th Circuit says debtor is not entitled to contribution as a matter of law because it has yet to make any payment to aggrieved purchasers under the ILSA.
In re: Beach First National Bancshares Inc. A bankruptcy trustee for debtor corporation whose principal asset, a bank, went into receivership with the FDIC, may not assert derivative claims against the corporate directors for breach of fiduciary duties, as these claims properly belong to the FDIC; however, the 4th Circuit says the trustee may assert a claim for improper subordination of debtor’s interest in an LLC that owned real estate.
Hensley v. Pace Airlines, Inc. The plaintiff-class members worked for the debtor and were not given advance notice of the debtor’s closure, as required by the Worker Adjustment and Retraining Act (WARN Act). The plaintiff-class’ claims arose before the debtor was placed in involuntary bankruptcy; therefore, their attorneys’ fees do not qualify as administrative expenses in the debtor’s bankruptcy.
PTM Technologies, Inc. v. Carolina Bank Although the debtor did not receive any direct benefit when it guaranteed a promissory note for its sister company, the loan was used to buy an aircraft that was arguably used to promote the income stream that benefitted all related companies, including the debtor.
Tobacco Square LLC v. Putnam County Bank The parties’ first deed of trust does not specifically identify the underlying debt. Since the complaint does not refer to it, the parties’ construction loan agreement – attached to the motion to dismiss – is not integral to the complaint. Thus, while the construction loan agreement may be properly considered at a later stage of this proceeding, it is not proper for the court to consider it at this stage. Accordingly, the debtor’s complaint plausibly alleges that the first deed of trust is invalid because it fails to adequately identify the obligation that it secures.
In re Sea Trail Corp. Even though the claims in Classes 14 and 15 are both unsecured, they may be treated differently since Class 14 consists of the claims of trade creditors who are interested in an expeditious recovery while Class 15 is made up of claims arising from shareholder loans, and those creditors are willing to retain assets for a longer time in an effort to maximize their recovery.