Justia U.S. 8th Circuit Court of Appeals Opinion Summaries

Defendant was a former employee and sole stockholder of RSI Holdings. RSI Holdings was the sole stockholder of the debtor. This appeal involved a dispute over a life insurance policy where defendant's estate was listed as the beneficiary. The Bankruptcy Appellate Panel (BAP) affirmed the bankruptcy court's summary judgment determination that the bankruptcy estate was entitled to the cash value proceeds of the life insurance policy debtor had obtained for defendant during her employment. View "Kaler v. Bala" on Justia Law

Debtors appealed from the order of the bankruptcy court confirming their amended Chapter 13 plan. At issue was whether the bankruptcy court erred when it confirmed debtors' plan that did not provide for payment of unsecured non-priority tax claims and tax preparation fees ahead of other non-priority unsecured creditors. Because a plan proposed by debtors providing for special treatment of the tax claims would unfairly discriminate against other unsecured non-priority creditors, the Bankruptcy Appellate Panel held that the bankruptcy court's confirmation of the plan was proper. View "Copeland, et al v. Fink" on Justia Law

In consolidated appeals, defendants appealed the bankruptcy court's judgments against them under 11 U.S.C. 547(b) for payments they received from debtors in the 90 days prior to the bankruptcy petition date. The Bankruptcy Appellate Panel (BAP) affirmed the bankruptcy court's decision with regard to its determination that the payments defendants received from debtors were voidable under section 547(b), but the BAP reversed on the bankruptcy court's calculation of defendants new value credits. View "Stoebner v. San Diego Gas & Electric Co." on Justia Law

Debtors filed for bankruptcy and the Trust subsequently filed an Adversary Complaint against debtors, claiming that they owed nondischargeable debt to the Trust under 11 U.S.C. 523. The bankruptcy court granted summary judgment to the Trust and the Bankruptcy Appellate Panel (BAP) reversed, holding that the Trust was not entitled to judgment as a matter of law because the Trust could not meet the statutory requirements of section 523. The court held that debtors did not obtain money, property, or services from the Trust, and the Trust did not rely on debtors' misrepresentations when it guaranteed certain obligations. Accordingly, the court affirmed the BAP's ruling, vacated the award of summary judgment to the Trust, and directed judgment to debtors. View "Samuel J. Temperato Trust v. Unterreiner, et al" on Justia Law

Debtor appealed from a bankruptcy court order sustaining the trustee's Objection to Debtor's Claim of Exemptions and granting trustee's Motion to Compel Turnover. The Bankruptcy Appellate Panel affirmed the bankruptcy court's ruling that debtor's exemption for three unrelated children living in his house did not fall within the ambit of Missouri Revised Statute 513.440 and that an amount to be calculated and agreed upon by the parties based on the sustained objection was property of the estate and must be turned over to the trustee. View "Turpen v. Rouse" on Justia Law

Iowa Student Loan appealed the bankruptcy court's judgment determining that the educational loan debts that debtor owed were discharged. Having reviewed de novo the bankruptcy court's conclusion that excepting debtor's student loan debts from discharge would constitute an undue hardship and having reviewed for clear error the findings of fact on which the bankruptcy court based its conclusion, the bankruptcy appellate panel affirmed the judgment. View "Shaffer v. Iowa Student Loan Liquidity" on Justia Law

U.S. Bank appealed from an order granting the motion of debtor to value U.S. Bank's allowed secured claim pursuant to section 506(a) of the Bankruptcy Code, and valuing the claim at $3,500,000. The Bankruptcy Appellate Panel held that the order was not final but that U.S. Bank's alternative request to grant leave to appeal it as an interlocutory order should be granted. The Bankruptcy Appellate Panel also concluded that low income tax credits that the owner of the property was eligible to claim, as well as the obligations they imposed, did affect the value of the property and should have been considered as part of the property's value. Accordingly, the court reversed and remanded. View "U.S. Bank Nat'l Assoc. v. Lewis & Clark Apartments, et al" on Justia Law

Frank Williams and Stephen Sherman Wyse appealed from a bankruptcy court order granting in part and denying in part Wyse's Motion to Reconsider Order of the Court Granting in part the Motion for Sanctions. The bankruptcy court ruled that Williams had to dismiss count I of a state court complaint within 15 days of the order but could continue to pursue counts II and III. The order reaffirmed an award of attorney fees to be paid by Wyse to debtor. The court affirmed the judgment, holding that King's pre-conversion debt was discharged. View "Williams, et al v. King" on Justia Law

Debtors appealed from the ruling of the bankruptcy court granting summary judgment to SunTrust and denying summary judgment to debtors, on debtors' adversary complaint that challenged SunTrust's standing to enforce a promissory note and deed of trust on debtors' property, and sought to remove the deed of trust from the chain of title to such property. The court affirmed the bankruptcy court's judgment and held that the promissory note was a negotiable instrument and that SunTrust was entitled to enforce it and the deed of trust. The bankruptcy court properly used evidence from the affidavit of SunTrust's representative and properly applied judicial estoppel. View "Knigge, et al v. SunTrust Mortgage, Inc." on Justia Law

Debtors appealed the bankruptcy court's order granting CitiMortgage's motion to dismiss debtors' adversary proceeding seeking the avoidance of CitiMortgage's lien on debtors' residence. The court concluded that a secured creditor's lien could not be avoided under 11 U.S.C. 506(d) based solely on the fact that the creditor's claim had been disallowed for untimeliness. Accordingly, the court affirmed the judgment. View "Shelton, et al v. CitiMortgage, Inc." on Justia Law