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By Ed Boltz, 9 October, 2012

Bankr. E.D.N.C.: In re Gene Express- Standing as a Party in Interest

Summary: AccuGenomics, Inc.’s (“AccuGenomics”) sought a determination pursuant to 11 U.S.C. § 365(p)(1)of whether certain patent rights under the license agreement between the debtor and the University of Rochester (“Rochester”) were considered property of the estate.
By Ed Boltz, 9 October, 2012

Bankr. E.D.N.C.: In re Garner- Security Interest in Property taken by Attorney for Debtor

Summary: The Debtors paid their attorney $10,000 prior to filing Chapter 11 for pre-petition services, with nothing owed to the attorneys at the time of filing. In order to secure fees for services rendered during the pendency of the case, the Debtors granted their attorneys two future advance deeds of trust on tracts of land owned by the Debtors. The Bankruptcy Administrator objected to the application to employ the attorneys, asserting that the attorneys were not disinterested persons as defined in § 101(14) and as required by § 327(a).
By Ed Boltz, 9 October, 2012

Bankr. M.D.N.C.: In re DeCoro USA, Limited- Tax Liability Between Subsidiary and Foreign Corporate Parent

Summary: The Debtor was a North Carolina corporation, wholly owned by DeCoro Limited (“Ltd.”), a Hong Kong limited liability company, which shipped furniture manufactured in China to the United States. The the furniture sales in the United States were procured by the Debtor. In 2008 or 2009, the IRS began an examination to determine whether the Debtor or Ltd. were liable for taxes in the United States. The determination hinged on whether the Debtor was a “dependent agent” of Ltd., in which case Ltd.
By Ed Boltz, 9 October, 2012

Bankr. M.D.N.C.: In re DeCoro USA, Limited- Res Judicata Effect of Confirmation Order only Extends to Actually Determined Matters

Summary: The Debtor was a North Carolina corporation, wholly owned by DeCoro Limited (“Ltd.”), a Hong Kong limited liability company, which shipped furniture manufactured in China to the United States. The the furniture sales in the United States were procured by the Debtor. In 2008 or 2009, the IRS began an examination to determine whether the Debtor or Ltd. were liable for taxes in the United States. The determination hinged on whether the Debtor was a “dependent agent” of Ltd., in which case Ltd.
By Ed Boltz, 9 October, 2012

Bankr. M.D.N.C.: DeCoro USA v. Ricci- Amendment of Complaint

Summary: Decor sought to rejoin Decofin, L.L.C. as a party, after it had been voluntarily dismissed by DeCoro earlier, and to add additional claims to its Complaint based upon alleged fraud and breach of a settlement agreement by the Defendant ("Ricci") and Decofin that occurred subsequent to the commencement of this adversary proceeding.
By Ed Boltz, 9 October, 2012

N.C. Court of Appeals: Cullen v. Emmanuel & Dunn- Collateral Attack & Iqbal/Twombley

Summary: In a prior related case, the Plaintiffs brought class action suit against Credit Collections Defense Network (“CCDN”) and several individuals, as attorneys associated with CCDN, alleging a scam that involved promises to assist debtors in legally avoiding credit card debts. See Lucas v. R.K. Lock & Assoc., 710 S.E. 2d 707 (N.C. Ct. App. March 2011).
By Ed Boltz, 9 October, 2012

Bankr. E.D.N.C.: In re Coopersmith- Violation of Automatic Stay for Collection Attempts Related to Corporate Guarantor

Summary: The Male Debtor, the owner of IPS Construction, personally guaranteed a loan to M.G. Brown, a division of Foreman’s Inc. After IPS failed to pay its debt, M.G. Brown commenced a small claims lawsuit in 2010. After the magistrate entered a judgment in favor of M.G. Brown on January 12, 2011, the Male Debtor appealed and the matter was referred to arbitration. Neither Debtor attended the arbitration and subsequently, on June 1, 2011, the Debtors filed Chapter 13 bankruptcy, listing as a creditor, among others, M.G. Brown. On June 30, 2011, M.G.
By Ed Boltz, 9 October, 2012

Bankr. E.D.N.C.: In re Construction Supervision Services - Statutory Claim of Lien on Funds Are Excepted from the Automatic Stay under 11 U.S.C. § 362 (b)(3)

Summary: In In re Mammoth Grading, Inc., No. 09-01286-8-ATS (Bankr. E.D.N.C.
By Ed Boltz, 9 October, 2012

Bankr. M.D.N.C.: In re Chesson- Summary Judgment on 11 U.S.C. § 523(a)(2)(B)

Summary: This Adversary Proceeding was brought to determine whether a debt was nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(B).
By Ed Boltz, 9 October, 2012

Bankr. E.D.N.C.: In re Boone - Reasonable Notice under the UCC of Disposition of Repossessed Vehicle

Summary: World Omni repossessed the Debtors’ vehicle and on August 30, 2010, received notice of its intent to sell the vehicle at private sale on or after September 9, 2010. The letter also informed the Debtors of their right to regain the vehicle by payment of the outstanding loan balance before September 9, 2010. The vehicle was sold on September 16, 2010, and, after the Debtors filed bankruptcy nearly a year later, World Omni filed a Proof of Claim for the deficiency.

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