Stay Relief: What Happens to “Unreasonable” Fees?

Posted on October 17, 2014 by BankruptcyRealEstateInsights

Wells Fargo Bank, N.A. v. 804 Congress, L.L.C. (In re 804 Congress, L.L.C.), 756 F.3d 358 (5th Cir. 2014) –

After an oversecured creditor obtained relief from the automatic stay and foreclosed on some property, the bankruptcy court asserted jurisdiction over disposition of the sale proceeds and denied in part the creditor’s claim for fees. The district court reversed and the case was appealed to the 5th Circuit. Continue reading →

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LLP: When Is A Partnership Not a Partnership (And Who Cares)?

Posted on October 14, 2014 by BankruptcyRealEstateInsights

In re Beltway Law Group, LLP, 514 B.R. 341 (Bankr. D. D.C. 2014) –

A managing partner filed an involuntary chapter 7 petition against a professional limited liability partnership. The bankruptcy court denied the petition and dismissed the case based on its interpretation that the entity was a corporation and not a partnership for purposes of the Bankruptcy Code. Continue reading →

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Environmental Claims: The Gift That Keeps On Giving

Posted on October 10, 2014 by BankruptcyRealEstateInsights

Asarco LLC v. Goodwin, 756 F.3d 191 (2nd Cir. 2014) –

A reorganized company (Asarco) sought contribution for payment of environmental claims from beneficiaries of trusts created under John D. Rockefeller’s will. The district court dismissed the claims, and Asarco appealed to the 2d Circuit. Continue reading →

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Sales Free and Clear: What About Restrictive Covenants?

Posted on October 7, 2014 by BankruptcyRealEstateInsights

Heatherwood Holdings, LLC v. HGC, Inc. (In re Heatherwood Holdings, LLC), 746 F.3d 1206 (11th Cir. 2014) –

A chapter 11 debtor owned property that had always been used as a golf course and club. When it requested that it be allowed to sell the property free and clear of encumbrances, an objection was filed on the basis that the property was subject to covenants that restricted the property to use as a golf course. The bankruptcy court found that the property was subject to the restrictive covenants; the district court affirmed; and the issue was appealed to the 11th Circuit. Continue reading →

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Strong Arm Powers: What Can Be Done With An Avoided Lien?

Posted on October 3, 2014 by BankruptcyRealEstateInsights

DeGiacomo v. Traverse (In re Traverse), 753 F.3d 19 (1st Cir. 2014) –

A chapter 7 trustee sought to avoid an unrecorded first mortgage and to preserve the lien for the benefit of the bankruptcy estate. In response, the debtor sought confirmation that if the trustee was successful, he would not be able to sell the mortgaged property without first foreclosing in accordance with state law. The bankruptcy court and bankruptcy appellate panel ruled in favor of the trustee and against the debtor, and the debtor appealed to the 1st Circuit. Continue reading →

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Subcontractor Claims: What Can You Do Once Your General Contractor Files Bankruptcy?

Posted on September 30, 2014 by BankruptcyRealEstateInsights

Branch Banking & Trust Co. v Construction Supervision Services, Inc. (In re Construction Supervision Services, Inc.), 753 F.3d 124 (4th Cir. 2014) –

After a general contractor filed bankruptcy, several of its subcontractors requested clarification from the court about whether they could file notices post-petition to perfect liens for construction materials and equipment supplied pre-petition. The bankruptcy court agreed that they could; the district court affirmed; and a lender appealed to the 4th Circuit. Continue reading →

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