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Case Summaries

Bankruptcy Law

[09/03] Official Comm. of Unsecured Creditors v. Anderson Senior Living Prop., LLC.
In an appeal from the Bankruptcy Appellate Panel's (BAP) grant of debtors' motion to dismiss as moot pursuant to 11 U.S.C. section 363(m), plaintiffs' appeal of the bankruptcy court's authorization of the sale of debtors' interests in seven co-owned properties as well as the undivided interests of the tenants in common (TIC), is affirmed as the BAP properly determined that section 363(m) moots the appeal because, even though the bankruptcy court approved the sale of the TIC property interests pursuant to section 363(h), the debtors ultimately sold the properties pursuant to section 363(b) and that sale was never stayed.

[09/02] US v. Ritchie Special Cred. Invs., Ltd.
In intervenor's application to intervene in an adversary proceeding initiated by the government pursuant to 18 U.S.C. section 1345 against the alleged author of a Ponzi scheme, the denial of the application is affirmed where: 1) the litigation progressed substantially between the initiation of these proceedings and intervenor's second motion to intervene; and 2) intervenor had knowledge of all the facts surrounding the district court's injunction, and failed to take issue with it when first presented with an opportunity to do so.

[09/02] Ritchie Special Cred. Invs., Ltd. v. US Trustee
In a creditor's objection to the appointment of a bankruptcy trustee, arguing that the trustee did not qualify as a “disinterested person” as required by 11 U.S.C. section 1104(d), the denial of the objection is affirmed where: 1) the bankruptcy court did not abuse its discretion in concluding that the trustee's role and interests as a receiver did not predispose him towards forfeiture or amount to a disqualifying material adverse interest; and 2) there was no abuse of discretion in the bankruptcy court’s determination that creditor failed to show that it would be prejudiced by the trustee's appointment as trustee in the jointly administered estates.

[08/27] Paloian v. Lasalle Bank, N.A.
In a debtor-hospital's trustee's action to recover, as fraudulent conveyances, some loan payments made during the last years before hospital entered bankruptcy, judgment of the district court is vacated and remanded where: 1) LaSalle Bank is an "initial transferee" as an entity that receives funds for use in paying down a loan, or passing money to investors in a pool, is an "initial transferee" even though the recipient is obliged by contract to apply the funds according to a formula; 2) because the hospital was solvent in August 1997, the ensuing months' debt service cannot be recaptured as a fraudulent conveyance; and 3) on remand, the bankruptcy court is instructed to determine whether the transfer of the accounts receivable to MMA Funding was a true sale, such that MMA Funding served as the bankruptcy-proofing intermediary that the lenders desired.

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Family Law

[09/02] In re Jose C.
Juvenile court's order terminating mother's parental rights and freeing the child for adoption is affirmed where: 1) trial court did not err in finding that the child was likely to be adopted; and 2) juvenile court did not err in failing to consider "presumed father" status for the grandfather.

[09/02] In re H.S.
Juvenile court's orders adjudicating minors to be dependent children and removing them from parental custody are affirmed as the tern "new evidence" in section 388 means material evidence that, with due diligence, the party could not have presented at the dependency proceeding at which the order, sought to be modified or set aside, was entered, and here, the father's section 388 motion relied on a expert opinion that was based not on any new evidence, but on the same evidence available to the experts who testified at trial. Further, to allow the belated new opinion evidence to support a section 388 motion would be contrary to the public policy calling for promptness and finality of juvenile dependency proceedings in order to protect the best interests of the child.

[09/02] In re A.L.
In dependency proceedings, trial court's dispositional order that minor child be returned to the custody of her mother and an order of family enhancement services is affirmed where: 1) because parental custody of the child was not disrupted by the dispositional order, and the child was not placed in foster care, there is no current need to "reunify" this family; and 2) father has made no showing that the "family enhancement" services ordered for him were not reasonable or did not constitute child welfare services or services provided by an appropriate agency.

[08/31] In re A.M.
An order declaring a father's minor children dependents of the juvenile court under Welfare and Institutions Code section 300(f) is affirmed where: 1) substantial evidence supports the court's section 300(f) jurisdictional finding that the father caused the death of a minor child through neglect; and 2) after considering all of the evidence and having the opportunity to observe the demeanor of witnesses, the juvenile court was in the best position to make the credibility findings concerning the father's statements.

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Workers' Comp

[08/31] Hayes Lemmerz Int'l, Inc. v. ACE Am. Ins. Co.
In an employer's suit against its insurer for refusing to tender defense in an underlying suit under its workers' compensation and employer liability policy, judgment of the district court in favor of the insurer is affirmed as, because defendant was, by virtue of Indiana law, a joint employer, insurer was contractually obligated to reimburse the reasonable expense of defendant's getting itself dismissed from the tort suit. However, because the defendant is not claiming that insurer refused to pay that amount, but rather, it is complaining that the insurer breached its duty to defend by failing to advise defendant that it's law firm was not defending the suit properly, the insurer had no duty to provide its insured's lawyers with legal advice.

[08/27] Transcon. Ins. Co. v. Crump
In plaintiff's suit against her deceased husband's insurer for workers' compensation death benefits, the judgment of the court of appeals is reversed and remanded where: 1) the treating physician's opinion was based on a reliable foundation and, therefore, legally sufficient evidence supports the jury's verdict; 2) the trial court's omission of the but-for component in the jury charge constitutes reversible error; and 3) an insurance carrier is entitled to have a jury determine the disputed amount of reasonable and necessary attorney's fees for which it is liable.

[08/19] Milpitas Unified Sch. Dist. v. Workers' Comp. Appeals Bd.
In a School District employee's suit for workers' compensation claims, the decision of the Workers' Compensation Appeals Board is affirmed as, the language of section 4660 permits reliance on the entire American Medical Association's Guides to the Evaluation of Permanent Impairment, including the instructions on the use of clinical judgment, in deriving an impairment rating in a particular case.

[08/12] Alvarez v. Workers' Comp. Appeals Bd.
In a claimant's objection to a panel qualified medical evaluator's ex parte communication with defense counsel, and a request for a new panel qualified medical evaluator under section 4062.3(f), in a workers' compensation proceeding for death benefits, the Workers' Compensation Appeals Board's (WCAB) denial of the petition is annulled and remanded as section 4062.3 expressly prohibits ex parte communications with a panel qualified evaluator, with no exception based on the initiator of the communication or for "administrative" matters. However, because a certain degree of informality in workers' compensation procedures has been recognized, not every conceivable ex parte communication permits a party to obtain a new evaluation from another panel qualified medical evaluator.

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