The Western District of Wisconsin offers a database of opinions for the years 1986 to present, listed by year and judge. For a more detailed search, enter a keyword, statute, rule or case number in the search box above.
Opinions are also available on the Government Printing Office website for Appellate, District and Bankruptcy cases. The content of this collection dates back to April 2004, though searchable electronic holdings for some courts may be incomplete for this earlier time period.
For a direct link to the Western Wisconsin Bankruptcy Court on-line opinions, visit this link.
Case Summary:
U.S. Trustee's objection to flat fee charged by chapter 7 debtor's attorney is dismissed. Court applies factors identified in In re Reliable Investors Corp., 60 B.R. 98 (Bankr. W.D. Wis. 1986) and determines that flat fee of $3,000 was reasonable, even though that amount exceeded by $487 what fee would have been under a hypothetical hourly rate.
Key Terms:
Attorney Fees
Case Summary:
Court interprets ambiguous trustee appointment order of October 28, 1986, as placing sole responsibility for the collection, recording and paying of payroll taxes on the debtor corporations' "agent" Paul Hemker. The trustee, Melvin Hoffman, was therefore not responsible for collecting, recording and paying those taxes.
Assuming the trustee to be a "responsible person" pursuant to 26 U.S.C. § 6672, he is not entitled to indemnification from the bankruptcy estate for any payments made for a 100% penalty assessed pursuant to that provision. Citing Levit v. Ingersoll Rand Financial Corp., 874 F.2d 1186 (7th Cir. 1989).
Payments made by trustee as a "responsible person" pursuant to 26 U.S.C. § 6672 to satisfy 100% penalty do not constitute administrative expense under 11 U.S.C. § 503(b)(1)(a). 11 U.S.C. § 346(f) obligates trustee to withhold from wage claims any amount required under applicable federal tax law. Result is not changed by fact that trustee was able to collect substantial amount ($160,000) for payment to holders of unsecured and administrative claims.
Post conversion payments made for 100% tax penalty pursuant to 11 U.S.C. § 6672 are not entitled to administrative super priority status under 11 U.S.C. § 726(b). Court's finding that payments were not entitled to administrative expense status under 11 U.S.C. § 503(b) mandates this result.
Statue/Rule References:
11 U.S.C. § 346(f) -- Trustee Tax Withholding Obligations
11 U.S.C. § 503 -- Administrative Expenses
26 U.S.C. § 6672 -- "Responsible Person" - Tax Withholding
Key Terms:
Administrative Expenses
Taxes
Taxes - Penalties
Case Summary:
Plaintiff Joan Stolp's motion for declaratory judgment excluding her interest in debtor's (plaintiff's former husband) military pension from the bankruptcy estate is granted. Any existing interest which the debtor had in that portion of his pension was dissolved by the state court divorce decree which granted portion of pension to debtor's wife. Decree entitled debtor's former wife to receive her portion of pension benefits directly from the government. Former wife's share was thus not property of the bankruptcy estate.
Key Terms:
Divorce Decrees - Property of Estate
Property of the Estate
Case Summary:
Trustee's failure to timely object to debtor's claimed exemption cannot create an exemption which would otherwise have no legal basis. [NOTE: see Taylor v. Freeland & Kronz, 118 L. Ed. 2d 280 (1992) -- trustee's failure to timely object to debtor's claimed exemption prevented him from challenging the validity of the exemption regardless of whether the debtor had a colorable statutory basis for claiming the exemption.]
Self-employed dentist's independent retirement accounts were exempt from creditors' claims pursuant to Wis. Stat. § 815.18(31) -- the exemption provision for "interest of any person in any employees' benefit plan."
Statue/Rule References:
Wis. Stat. § 815.18 -- Exemptions
Key Terms:
Exemptions
Case Summary:
Debtor motorcycle-dealer's conversion of proceeds from sale of motorcycle inventory in which creditor had a security interest did not constitute "willful and malicious" injury pursuant to 11 U.S.C. § 523(a)(6). Creditor's objection to debtors' claim of exemption in individual retirement accounts is denied. IRAs qualify as "similar plan[s]" pursuant to 11 U.S.C. § 522(d)(10)(E) -- addressing debtor's interest in a "stock bonus, pension, profit sharing, annuity, or similar plan." Third party defendant insurance agency's claim against debtors is equitably subordinated to claim of creditor which provided inventory financing, due to agency's misrepresentations and coercive dealings in connection with the sale of debtor's business.
Statute/Rule References:
11 U.S.C. § 510(c) -- Equitable Subordination
11 U.S.C. § 522(d) -- Exemptions - Federal
11 U.S.C. § 523(a)(6) -- Nondischargeability - Willful and Malicious Injury
Key Words:
Equitable Subordination
Exemptions
Retirement/Pension Plans
Willful Malicious
Case Summary:
Trustee's motion for turnover of property of the estate pursuant to 11 U.S.C. § 542(b) against bank which had issued letter of credit in favor of debtor is denied. Agreement between debtor and bank called for bank to fund the unfunded portion of a promissory note upon fulfillment of certain conditions precedent by the debtor. Although agreement is found to constitute an executory contract pursuant to 11 U.S.C. § 365, it is not assumable by the trustee due to the exception contained in 11 U.S.C. § 365(c)(2) -- the agreement constitutes "[a] contract to make a loan, or extend other debt financing or financial accommodations, to or for the benefit of the debtor, or to issue a security of the debtor."
Statue/Rule References:
11 U.S.C. § 365 -- Executory Contracts
11 U.S.C. § 542 -- Turnover of Property
Key Terms:
Executory Contracts
Turn Over of Property
Case Summary:
Parties sought court determination regarding validity and extent of judgment lien on nonexempt real estate of debtors who had received chapter 7 discharge. Court holds that bankruptcy court discharge voided judgment against debtors. Further, state court's subsequent order of satisfaction -- granted pursuant to Wis. Stat. § 806.19(4) providing for satisfaction of judgments upon showing of bankruptcy discharge -- voided judgment lien on nonexempt real estate. Judgment lien is voided pursuant to Wis. Stat. § 806.21, which provides for voiding of lien upon satisfaction of judgment.
Statue/Rule References:
Wis. Stat. § 806.19(4) -- Satisfaction of Judgment Upon Showing of Discharge
WIs. Stat. § 806.21 -- Voiding of Lien Upon Satisfaction of Judgment
Key Terms:
Judicial Liens
Lien Avoidance
Satisfaction of Judgment
Case Summary:
Creditor store's adversary proceeding seeking determination that debt from debtor's purchases totaling $1,047.42 is nondischargeable pursuant to 11 U.S.C. § 523 (a)(2)(C) -- the luxury goods exception -- is dismissed. To establish a presumption of nondischargeability under § 523(a)(2)(C), a plaintiff must show: 1) a consumer debt; 2) owed to a single creditor; 3) aggregating more than $500.00; 4) for luxury goods or services; 5) incurred by an individual debtor; 6) on or within forty days before the order for relief. Citing In re Blackburn, 68 B.R. 870, 873 (Bankr. N.D. Ind. 1987). Debtors successfully rebutted the presumption by testifying that the purchases were made impulsively and that bankruptcy was not contemplated until after they received a notice of deficiency from the Veterans Administration.
Statue/Rule References:
11 U.S.C. § 523(a)(2)(C) -- Nondischargeability - Luxury Goods
Key Terms:
Luxury Goods
Case Summary:
Trustee's motion for partial summary judgment in action to recover $125,000 setoff by bank against debtor's indebtedness to it is denied. Bank did not waive its right to setoff by issuing a cashier's check; nor did purchase of a cashier's check create special account so as to destroy mutuality of obligations required for bank to exercise its right of setoff under Bankruptcy Act. Substantial issues of material fact exist as to whether payee's interest in cashier's check arose before debtor-remitter filed bankruptcy, thus precluding summary judgment.
Statue/Rule References:
11 U.S.C. § 553 -- Setoff
Key Terms:
Setoff
Summary Judgment
Case Summary:
Debtors sought court determination of status of real estate tax penalties in their respective chapter 11 bankruptcy cases. Generally, penalties are not in harmony with overall philosophy of bankruptcy code -- to effectuate fair and equitable distribution of estate assets to creditors. Postpetition penalty on debtors' postpetition Wisconsin real estate taxes is allowable as an administrative expense. Postpetition penalties on debtors' prepetition real estate taxes, which become a lien on real estate under Wisconsin law, are punitive in nature and are thus disallowed.
Key Terms:
Penalties
Tax -- Penalties