Summary:
The Debtor sought to employ James McElroy & Diehl, P.A. ("JMD"), as counsel under 11 U.S.C. § 327(a) for representation in various other matters, including litigation and other "future, discrete matters" in the bankruptcy cases. Because JMD had received substantial compensation from two equity owners of the Debtor, who were also substantial creditors, the Court found that JMD could not be deemed to be disinterested as required under 11 U.S.C. § 327(a) and could not be approved. Nor could JMD be approved under 11 U.S.C.
Answer a Complaint filed by Wells Fargo in North Carolina Superior Court, Stonebridge asserted several counterclaims. When Stonebridge later filed Chapter 11, the state court action was removed to bankruptcy court. Following the heightened pleading standards of Iqbal/Twombley, Wells Fargo sought dismissal of the counterclaims under Rule 12(b)(6) for failing to state claims for relief that were facially plausible. Stonebridge argued that the more permissive North Carolina pleading standards sho
Summary:
In a dispute regarding a failed real estate development, Stonebridge asserted a breach of contract claim. In response, NVR argued that a liquidated damages provision limited its liability for damages. The Bankruptcy Court found that Stonebridge could not complain that a negotiated liquidated damages provision was insufficient or invalid. The Bankruptcy Court also rejected the assertion by Stonebridge that NVR was required to indemnify economic damages, finding that the contract between the parties required indemnification of "damage to property and
In determining if the 60-day wages of the debtor were exempt, the Court determined that the Debtor's fiance and her son were part of his "family". “North Carolina courts understand the word ‘family’ to imply that the debtor has other dependents who rely on the debtor for support.” The use of the word 'dependent' here implies an actual situation of dependency, rather than a potential legal dependency.
