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.
Canovali-Relief from Chapter 11 Confirmation Order under Rule 60(b)Summary:
The Debtors had a two mortgage against their home, initially valued in the amount of $1,068,000.00, with Bank of America, a first with a balance of $988,000.00 and second with a balance of $368,000.00.
The Debtors proposed a Chapter 11 plan that recognized that there were two notes and Deeds of Trust, but that both such claims would be paid as a s
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
