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Trust failure debt not dischargeable in Chapter 7 case
A bankruptcy judge rules a grandfather’s failure to create a trust for his granddaughter constitutes defalcation, making the debt nondischargeable.
Bankruptcy – Defalcation – Fiduciary duty
Where a debtor’s granddaughter has brought an adversary complaint against him, the debt owed to her is excepted from discharge on account of the debtor’s defalcation while acting in a fiduciary capacity.
Bankruptcy – Sanctions – Vexatious litigation
Where a debtor and her brother have engaged in a pattern of vexatious litigation, sanctions are appropriate and necessary against them.
Bankruptcy – PROMESA
Where a U.S. District Court judge permanently stayed claims brought against the Puerto Rico Police Department, that decision should be upheld because the claims constitute “administrative expense” claims that were discharged under Puerto Rico's financial reorganization plan, which was confirmed pursuant to the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA).
Bankruptcy – Post-discharge jurisdiction
Where an adversary proceeding was dismissed for lack of jurisdiction, the bankruptcy court should have conducted a case-specific inquiry as to whether it had any basis for retaining jurisdiction over the adversary proceeding post-discharge.
Bankruptcy – Mortgage foreclosure
Where a debtor has filed an adversary complaint challenging the validity of a foreclosure sale, the defendant bank’s motion for judgment on the pleadings should be denied in part, as […]
Worcester pastor accused of fraud ordered into involuntary bankruptcy
A federal judge has forced a longtime Worcester pastor the state is pursuing for alleged fraud into involuntary bankruptcy.
Bankruptcy – Loss of assets – Discharge denial
Where a U.S. Bankruptcy Court judge found that appellant debtors did not satisfactorily explain the disposition of their assets and consequentially denied them a discharge, that decision should be affirmed despite the debtors’ argument that 11 U.S.C. §727(a)(5) only permits denial of a discharge when the lost assets at issue are substantial.
Bankruptcy – Asset recovery specialists
Where claims have been filed by two asset recovery specialists, their claims should be disallowed because they have not shown that they were properly installed as “managers” of the debtor entitled to compensation.
Bankruptcy – Trust – Sham
Where a Chapter 7 trustee alleged that a Marshfield home, purportedly held in a trust for the benefit of the defendant debtor’s daughter, was legally part of the bankruptcy estate, a U.S. Bankruptcy Court judge’s decision to deny the debtor’s motion to dismiss should be upheld because the overwhelming weight of the undisputed and plausibly alleged facts supports the trustee’s contention th[...]
Bankruptcy – Student loans – Hardship
Where a plaintiff debtor has commenced an adversary proceeding to determine that her student loan obligations to the defendants were dischargeable under Section 523(a)(8) of the Bankruptcy Code, summary judgment should be denied because there are genuinely disputed issues of material fact regarding whether the loans fall within the Section 523(a)(8) exception to discharge and whether they impose a[...]
Attorneys – Malpractice – Bankruptcy
Where summary judgment was awarded to the defendants in a legal malpractice action, that decision must be reversed because (1) the plaintiffs’ claim is not barred by claim preclusion and (2) material facts remain.
Verdicts & Settlements
- Injury during baby’s adenoidectomy leads to stroke
- Construction worker’s hand caught in cement mixer
- Worker trapped in freezer, dies during steam cleaning
- Pedestrian, 69, hit by motor vehicle while in crosswalk
- Four-vehicle pileup leaves driver with spinal cord injury
- Nursing home staff blamed for kidney-failure death
- Pharmacy’s late delivery blamed for patient’s death
- Man, 25, drowns after swimming lesson at fitness club
Opinion Digests
- Jurisdiction – Forum selection clause – Non-signatory
- Criminal – Responsibility
- Attorneys – Lien
- Landlord and tenant – Default judgment
- Zoning – Constructive grant – Comprehensive permit
- Fraud – False Claims Act – Settlement share
- Civil practice – Discovery – Cybersecurity
