News

Case Summaries

Bankruptcy Law

[03/12] In Re: Kirkland
District court's determination that the bankruptcy court had jurisdiction to determine the post-petition interest and collection costs to which the creditor was entitled as the result of a default on a student loan that occurred after the Chapter 13 estate was closed and the debtor discharged is reversed as the district court erred in concluding that the bankruptcy court had subject matter jurisdiction over the issues.

[03/10] In Re: Am. Bridge Prods., Inc.
In a bankruptcy trustee's action against an appointed receiver for misfeasance, judgment of the district court finding that plaintiff's claim is barred by the statute of limitations is vacated and remanded as the receiver had not rendered a final accounting or been discharged in either state or federal court.

[03/08] In Re: Ray
District court's judgment affirming the bankruptcy court's dismissal of two Chapter 11 proceedings was correct, but the decision is vacated, as the law firm lacked standing where there is no evidence that one of the law firm's former attorneys ever informed the bankruptcy court that it was appearing on behalf of the firm and the record is devoid of any mention of the firm by the attorney or any other party.

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Probate Trusts

[02/25] Conservatorship of John L.
In a petition to establish a conservatorship of a person pursuant to the Lanterman-Petris-Short Act, the judgment of the court of appeal is affirmed where: 1) the superior court did not violate the LPS Act when it excused the individual's production and proceeded without him in attendance at a hearing to establish a conservatorship of his person; and 2) the superior court did not violate his due process rights.

[02/25] Donahue v. Donahue
Trial court's order, charging a trust with some $5 million in past and ongoing attorney fees incurred on behalf of a former trustee in defending against the beneficiary's allegations of self-dealing and conflict of interest is reversed as it cannot be determined from the trial court's order whether the fee awards are consistent with applicable legal principles. Long-established principles of trust law impose a double-barreled reasonableness requirement where: 1) the fee award must be reasonable in amount and reasonably necessary to the conduct of litigation; and 2) it also must be reasonable and appropriate for the benefit of the trust.

[02/11] Estate of Tolman
Denial of a granddaughter's petition to determine persons entitled to distribution from her grandmother's estate is affirmed as the exclusion of unmentioned heirs or relatives from the will's dispositions, or an intent to disinherit those who contest those dispositions, does not sufficiently express or manifest an intent to arrest the operation of the anti-lapse law following a legatee's death.

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Property Law & Real Estate

[03/11] Key Props. Grp., LLC v. Milford
In a property owner's appeal from the superior court's orders resolving a condemnation action, filed by a city, to obtain temporary construction and permanent utility easements through a development, the order is affirmed where: 1) although the City Charter did not specifically identify motions as a method by which the Council may vote to file a condemnation action, it also did not prohibit motions or require that an ordinance be adopted for that purpose; 2) any alleged private benefit to a developer arising from the condemnation was incidental to the primary and legitimate purpose of the condemnation; and 3) defendant's equitable estoppel claim failed for lack of any factual basis.

[03/10] Milwaukee Metro. Sewerage Dist. v. American Int'l Specilaty Lines Ins. Co.
In a sewerage district's suit for damages against an environmental liability insurer for denying coverage for costs incurred by the district in removing significant pollution on land it recently purchased, district court's judgment is reversed and remanded as the district court's finding that there was clear and convincing proof that a prior agreement existed between the insurance company and the sewerage district that the parcel would be covered property was clearly erroneous. Therefore, defendant is entitled to judgment on the sewerage district's reformation claim and, as a consequence, judgment in favor of defendant on its indemnity claim is vacated.

[03/10] TJS of N.Y., Inc. v. Smithtown
In an action seeking an injunction and declaratory judgment to the effect that defendant-town's zoning ordinance did not give plaintiff adequate alternative sites on which to locate its adult entertainment business, a denial of an injunction is vacated where the First Amendment required courts to consider the adequacy of alternative sites available when the ordinance is challenged, not at the time the ordinance is passed.

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