First Case Roundup of Fall

7th Cir

Freeland Enodis Corp., 06-4178 [Sep. 2, 2008]
In ruling on multiple appeals arising out of bankruptcy Court holds that plaintiff trustee may avoid certain transfers by the debtor as fraudulent, but further findings are required with respect to the solvency of the debtor afterward (i.e. did the transfers render the debtor insolvent). Accordingly, summary judgment for trustee on the 547 and 548 claims is reversed and the matter is remanded for further findings on the trustee’s claims that the transferee entity was merely an ‘alter ego’ of the debtor.

8th Cir

Milavetz, Gallop & Milavetz v. US, 07-2405 [Sep. 4, 2008]
In a case challenging application of the BAPCPA, summary judgment for the plaintiff is affirmed in part and reversed in part where the Court found that while attorneys providing bankruptcy assistance are “debt relief agencies” under the BAPCPA,  526(a)(4) is unconstitutional as applied to them; nonetheless 528(a)(4) and (b)(2) are constitutional so the result is to restore the effect of the amended law (at least in part).

9th Cir

Burkhart v. Coleman, 06-15411 [Sep. 4, 2008]
In an action to quiet title, rulings that federal bankruptcy law does not preempt California protection of bona fide purchasers and that unauthorized post-bankruptcy sale of real property causes title to rest with the purchaser, not the bankruptcy estate, are affirmed where: 1) the bankruptcy estate failed to record title in the property; and 2) a bona fide purchaser bought and recorded title in the property.

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