Opinions

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.

Judge Thomas S. Utschig

In re Crossroads Hills, Case No. 91-53705-11 (08/05/1992) -- Judge Thomas S. Utschig 08/05/1992

Case Summary:
Secured claim of Resolution Trust Corporation was properly transferred to P.J. Investments. Variances in exhibits attached to the proofs of claim filed by each entity did not affect a bifurcation of the claim.

Even a substantial variance between the price paid for a claim and the value of that claim against the estate does not, without more, warrant application of the court's equitable powers to reduce or limit the amount of the claim. The Seventh Circuit has consistently required a showing of fraud, breach of fiduciary duty or improper insider dealings as justification for a judicial reduction of a claim.

Wisconsin law does not contain an election-of-remedies requirement and the fact that the creditor chose to proceed against the debtor on the basis of the promissory note does not preclude it from foreclosing on the mortgage.

Imposition of sanctions against the debtor is not warranted. There is some limited support in the case law that courts in similar situations have used their equitable powers to reduce the amount of a claim filed against the bankruptcy estate.

Statue/Rule References:
Fed. R. Civ. P. 11 -- Sanctions
Fed. R. Bankr. P. 3002(c) -- Time for Filing Proof of Claim
Fed. R. Bankr. P. 3001(e) -- Transferred Claims

Key Terms:
Claims
Claims -- Equitable Reduction By Court
Election of Remedies
Remedies – Election Of
Sanctions

Bruce A. Schultz, et al. v. Raymond E. Schrank II, et al. (In re Schrank), Adv. No. 90-3199, Case No. 91-001036-7 (07/09/1992) -- Judge Thomas S. Utschig 07/09/1992

Case Summary:
Abstention is appropriate in what is essentially an action grounded on various state law fraud claims. Factors supporting abstention in this matter are: 1) the effect or lack thereof on the efficient administration of the estate; 2) the extent to which state law issues predominate over bankruptcy issues; 3) the difficulty or unsettled nature of the applicable law; 4) the degree of relatedness or remoteness of the proceeding to the main bankruptcy case; 5) the substance rather than the form of an asserted "core" proceeding; 6) the feasibility of severing state law claims from core bankruptcy matters to allow judgments to be entered in state court with enforcement left to the bankruptcy court; 7) the existence of a right to a jury trial; 8) the presence in the proceeding of a nondebtor party. Citing Republic Reader's Service, Inc. v. Magazine Service Bureau, Inc. (In re Republic Reader's Service, Inc.), 81 B.R. 422, 429 (Bankr. S.D. Tex. 1987).

Statue/Rule References:
28 U.S.C. § 1334 -- Abstention

Key Terms:
Abstention

Dale L. Lenser v. Monica B. Zelenka (In re Lenser), Adv. No. 92-5001, Case No. 91-51990-7 (05/15/1992) -- Judge Thomas S. Utschig 05/15/1992

Case Summary:
Although state courts have concurrent jurisdiction to determine dischargeability issues, this court will retain jurisdiction to determine whether the debts arising from the state court divorce decree are dischargeable in the debtor-husband's bankruptcy. Such issues are frequently determined by this court and the debtor's bankruptcy case had not yet been closed at the time he filed this adversary proceeding. Considerations of judicial economy, efficiency and expediency warrant the court's retention of jurisdiction in this matter.

Statue/Rule References:
11 U.S.C. § 523(a)(5) -- Nondischargeability - Divorce Decrees

Key Terms:
Jurisdiction

In re Bringe, Case No. 90-02186-12 (05/15/1992) -- Judge Thomas S. Utschig 05/15/1992

Case Summary:
IRS was provided with adequate notice of debtors' bankruptcy even though the notice contained a one-digit error in Mr. Bringe's social security number and did not contain his employee identification number. The notice contained the correct names and address of the debtors as well as Mrs. Bringe's correct social security number. Citing Fed. R. Bankr. P. 1005 & 2002.

IRS claim was filed almost one year after the deadline and the debtors have already made payments pursuant to their chapter 12 plan. Allowing the late-filed claim would harm the debtors and the unsecured creditors holding allowed claims. Trustee's objection to IRS's claim is therefore granted and the claim is disallowed. Citing Fed. R. Bankr. P. 9006.

Statute/Rule References:
Fed. R. Bankr. P. 2002 -- Notice of Bankruptcy
Fed. R. Bankr. P. 3002(c) -- Time for Filing Proof of Claim
Fed. R. Bankr. P. 3003(c) -- Filing Proof of Claim
Fed. R. Bankr. P. 9006 -- Time

Key Words:
Claims -- Late Filed
Notice -- Adequacy/Lack Of

In re Rynearson, Case No. 91-21850-7 (04/06/1992) -- Judge Thomas S. Utschig 04/06/1992

Case Summary:
Debtor's motion for valuation of the lien of the USA-FmHA at $21,000 is denied. Supreme Court's decision in Dewsnup v. Timm, 116 L. Ed. 2d 903 (1992), prevents chapter 7 debtors from "stripping down" the lien of a creditor to the judicially determined value of the collateral. Debtors' attempts to distinguish Dewsnup on its facts are without merit.

Statue/Rule References:
11 U.S.C. § 506(d) -- "Strip Down"

Key Terms:
“Strip Down”