California Lawyers Association

Case Updates

All case updates written and distributed by the CLA sections

An inherited 401(k) account is not property of the estate and not subject to turnover by the debtor to a chapter 7 trustee. Read more
Letter from a debt collector extending an offer to settle a credit card debt in full that failed to inform the consumer about potential accruing interest and fees was not a violation of the FDCPA. Read more
Automatic stay in a bankruptcy proceeding did not prevent a judgment creditor from renewing a judgment while the case was pending, but Bankruptcy Rule 108(c) extended the time to renew until 30 days after the stay was terminated. Read more
In appropriate circumstances, reverse veil piercing is an available remedy for a judgment creditor who could not collect directly from the judgment debtor. Read more
Court dismissed chapter 7 trustee's constructive fraudulent conveyance claim against defendant electrical company and rejected trustee's theory that defendant failed to provide services to a property owned by a third party with whom debtor had contracted to manage a portfolio of properties that included the subject property. Read more
Under Massachusetts law, a pharmacist correctly filling a prescription could not be held liable for damages suffered by a patient under a claim for breach of implied warranty under the UCC. Read more
In Kasolas v. Nicholson (In re Fox Ortega Enterprises, Inc.), -- B.R. --, 2021 WL 1605169 (Bankr. N.D. Cal. 2021), the bankruptcy court ruled on summary judgment that delivery of product by the debtor to its customer, who had previously ordered and paid for the product, constituted an avoidable fraudulent conveyance because (1) the delivery came after threats by the customer relating to the non-delivery of the product, and (2) the debtor’s principal, later, in a criminal proceeding, conceded that the operation of the business was, at least in part, a Ponzi scheme. Read more
The United States Bankruptcy Court for the Central District of California denied the motion of Chapter 11 debtor and debtor-in-possession Innerline Engineering, Inc. to extend the time to file its case initiation documents, notwithstanding that the motion was filed timely and submitted on the court’s approved local bankruptcy form. Read more
In In re Arno Arutyunyan, 2021 WL 755770 (B.A.P. 9th Cir. 2021), the United States Bankruptcy Appellate Panel of the Ninth Circuit (BAP) affirmed the bankruptcy court’s dismissal of the creditor’s adversary complaint on grounds that it was filed late. Read more
In In re Cambridge Land Co. II, LLC, 626 B.R. 319 (B.A.P. 9th Cir. 2021), defendants in a state court legal malpractice action filed by bankrupt limited liability companies (LLCs) appealed bankruptcy court orders reopening the LLCs’ previously dismissed Chapter 11 cases for administrative purposes only. Read more

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