The debtor owned a small store that sold lottery tickets. The debtor failed to deposit certain proceeds from the sale of lottery tickets into a special bank account. The Court held that this failure was a "defalcation while acting in a fiduciary capacity" under 11 U.S.C.A. § 523(a)(4).
Opinions
The Middle District of Georgia offers opinions in PDF format, listed by year and judge. For a more detailed search, enter the keyword or case number in the search box above.
Please note: These opinions are not a complete inventory of all judges' decisions and are not documents of record. Official court records are available at the clerk's office.
Robert F. Hershner, Jr. (Retired)
The creditor held a second mortgage on the debtor's primary residence. The confirmed Chapter 13 plan provided that the second mortgage was disputed and would be satisfied of record upon completion of the plan and the debtors' discharge in bankruptcy. The Court held that the creditor was bound by the confirmed plan but that the creditor's secured claim and rights under his second mortgage survive the confirmation of the debtors' Chapter 13 plan and discharge in bankruptcy.
Pursuant to 11 U.S.C.A. § 366, the Chapter 11 debtor proposed its current liquidity as adequate assurance of payment for utility services. The debtor also proposed to require its utility companies to obtain court approval before terminating its services. No utility company appeared at the hearing or objected to debtor's motion. The Assistant United States Trustee did object. The Court held that the debtor's current liquidity was adequate assurance of payment, but declined to require utility companies to obtain court approval before terminating services.
The debtor allowed her husband to use the debtor's good credit to obtain a loan to continue farming. The debtor's husband signed the debtor's name to a false financial statement concerning the debtor's financial affairs. The Court held that the husband's intent to deceive could not be imputed through agency law to the debtor.
The bank financed the debtor's purchase of two vehicles. The bank filed a financing statement, but did not perfect its security interest on the certificates of title. The Court held that the trustee could avoid the bank's security interest in the vehicles under 11 U.S.C.A. section 544(a)(1). The Court held that the financing statement was not effective to perfect the bank's security interest.
Judge James D. Walker Jr. (Retired)
Debtor’s student loans were discharged in full because they created an undue hardship. Debtor’s refusal to participate in William D. Ford Federal Direct Loan Program’s income contingent repayment plan did not preclude a finding that Debtor had made a good faith effort to repay his loans.
A debtor who seeks to enjoin a criminal prosecution for bad checks can survive a Rule 12(b)(6) motion by showing (1) a threat of great and immediate injury by alleging some bad faith in the criminal case; and (2) the necessity of an injunction to protect a federal right by showing that he is unable to raise a defense in the state court based on his allegation of bad faith.
Judge John T. Laney, III
The Court held a hearing on the Motion of Arthur Geeslin, Jr. ("Debtor") for Contempt against Meriwether County District Attorney Peter Skandalakis ("Respondent") for violations of the automatic stay and the discharge injunction. The Court held that it had the inherent power to determine violations of the automatic stay and the discharge injunction, despite Respondent’s sovereign immunity argument. Further, the Court ruled: 1) the exception to the automatic stay under 11 U.S.C. § 362(b)(4) did not apply to the actions taken by Respondent; 2) the debt was discharged, despite the language of 11 U.S.C. § 523(a)(7); and 3) because damages were not proven, the issue of sovereign immunity would not be reached. The Court reserved judgment on issuing an injunction because an adversary proceeding had not been filed.
In the adversary proceeding regarding the complaint filed by Douglas McArthur Byrd ("Debtor") to recover property of the estate, Atlanta Casualty Company ("Defendant") made a Motion for Summary Judgment. After ruling on several evidentiary issues, the Court held in favor of Defendant stating that Debtor’s material misrepresentation that he did not know whether his vehicle had been found, when he had been told by the police six days earlier that the vehicle had been recovered, violated the Cooperation and Fraud & Misrepresentation clauses of Defendant’s automobile insurance policy. Therefore, as a matter of law, Defendant was not required to pay Debtor for his alleged loss.
The Court held a trial to determine the dischargeability of debt created by losses that International Fidelity Insurance Company ("Plaintiff") suffered after Raymond Jerry Baxter’s ("Debtor") company went out business and Debtor filed for bankruptcy. After stating that Plaintiff did not meet its burden required by 11 U.S.C. § 523(a)(2)(B), the Court held in favor of Debtor, stating that Plaintiff only proved its own company policy, not the industry norm. However, the Court held in favor of Plaintiff on the 11 U.S.C. § 523(a)(4) allegation, as to jobs performed in New York state, if Plaintiff can prove during the damages stage that Debtor or his company misappropriated funds from the project owner(s). The issue of damages was reserved for a later trial after all job(s) are completed and an accurate accounting of losses can be done.