2012 Judge Winfield - Opinions
Judge Novalyn L. Winfield -- Opinions signed in 2012
This matter initially came before the court on the Trustee’s Motion to Compel the Debtors to provide Access to the Debtors’ Residence. The Debtors responded to the Trustee’s Motion with a Cross-motion to Compel Abandonment of the Debtors’ Residence. The court grants the Trustee’s motion and denies the Debtors’ motion without prejudice, finding that valuation of the Debtor's residence is not limited to a "snapshot" of the time of the filing of Debtor's petition.
Due to absolute assignment of rents no property interest exists that permits Trustee to collect rents, and Trustee lacks standing to collect rents on behalf of lender, absent lender's authorization.
Chapter 11 cases dismissed under Section 1112 as bad faith filings.
Procedurally, the opinion addresses Plaintiff's motion to dismiss a counterclaim and Defendants' motion to dismiss a third party complaint. Both motions were granted. Applying the Van Dusen Rule, which requires that when venue is changed, the transferee court must apply the state law that the transferor court would have applied, the court determined that it had to apply Delaware law to the claims asserted in the counterclaim and the third party complaint. Application of Delaware required dismissal of the claims for minority shareholder oppression and breach of fiduciary duty.