Justia U.S. 11th Circuit Court of Appeals Opinion Summaries

The trustee objected to the modification of debtor's Chapter 13 modification plan, arguing that the doctrine of res judicata barred debtor's modification. The bankruptcy court confirmed the modified plan, finding that 11 U.S.C. 1329 creates an exception to the finality of confirmed Chapter 13 plans, and that debtor's modified plan satisfied the express requirements of section 1329.The Eleventh Circuit affirmed and held that section 1329 does not impose a change-of-circumstances requirement on debtors. Therefore, debtor need not make any threshold showing of a change in circumstances before proposing a modification to a confirmed plan under section 1329. View "Whaley v. Guillen" on Justia Law

The Eleventh Circuit affirmed the bankruptcy court's finding that UpRight, a debt relief agency that represented assisted persons, violated several applicable provisions and rules, and upheld the bankruptcy court's imposition of sanctions against it.The court held that the bankruptcy court had subject matter jurisdiction to impose sanctions; because adequate notice came from both the bankruptcy administrator and the bankruptcy court, and UpRight had a reasonable opportunity to respond both orally and in writing, the fundamental fairness of due process was met; UpRight's contention that the bankruptcy court applied the wrong legal standard in imposing the suspensions pursuant to 11 U.S.C. 105 is moot; the totality of the circumstances support a finding of a "clear and consistent pattern or practice" under 11 U.S.C. 526(c)(5); and the monetary sanctions that were imposed were not grossly excessive and did not fall outside the reasonable "range of choice" that was available to the bankruptcy court. View "Law Solutions of Chicago, LLC v. Corbett" on Justia Law

The language of 11 U.S.C. 365(p)(1) is crystal clear: "If a lease of personal property is rejected or not timely assumed by the trustee . . . the leased property is no longer property of the estate."The Eleventh Circuit affirmed the district court's decision upholding the bankruptcy court's denial of Microf's claim for administrative-expense priority. Where, as here, it is undisputed that the trustee did not assume the Microf lease, section 365(p)(1) means that the Microf lease dropped out of the bankruptcy estate upon confirmation of debtor's Chapter 13 plan. Because Microf has not otherwise shown that the lease confers a benefit on the estate, the court held that its claim of administrative-expense priority was properly denied. View "Microf LLC v. Cumbess" on Justia Law

The court-appointed receiver filed suit against JPMC, seeking to recover funds that were fraudulently diverted from the Receivership Entities' bank accounts in connection with a Ponzi scheme. The complaint sought to avoid the fraudulent transfers and recover the diverted funds on behalf of the Receivership Entities under the Florida Uniform Fraudulent Transfer Act (FUFTA), and to collect damages from JPMC for JPMC's alleged aiding and abetting of three torts: breach of fiduciary duty, conversion, and fraud.The Eleventh Circuit affirmed the district court's dismissal of the complaint, holding that the receiver failed to state a claim under FUFTA because he failed to allege an applicable conveyance or fraudulent transfer. The court also held that the receiver lacked standing to assert, on behalf of the Receivership Entities, claims against JPMC for allegedly aiding and abetting the Ponzi schemers' breach of fiduciary duties, conversion, and fraud. Finally, the court noted that the district court did not abuse its discretion in staying discovery pending resolution of JPMC's motion to dismiss. View "Isaiah v. JPMorgan Chase Bank, N.A." on Justia Law

Plaintiff filed suit alleging that DISH violated the Florida Consumer Collection Practices Act (FCCPA) in its attempts to collect debt it knew had been discharged in bankruptcy and in its direct contacts with plaintiff knowing she was represented by counsel. Plaintiff also alleged that DISH violated the Telephone Consumer Practices Act (TCPA) by contacting plaintiff about the debt with an automated dialing system after she revoked her consent to receive such calls.The Eleventh Circuit first determined that DISH's claim for the Pause debt was discharged. The court reversed the district court's grant of summary judgment as to the FCCPA claims. In this case, DISH attempted to collect debt it had no legal right to collect because the debt had been discharged in bankruptcy, and DISH directly contacted plaintiff after having received notice that she was represented by counsel. Accordingly, the court remanded on the FCCPA claims for the district court to consider whether DISH actually knew that the Pause charges were invalid and that plaintiff was represented by counsel with regard to the debt it was attempting to collect, and if so, whether such errors were unintentional and the result of bona fide error.The court affirmed the district court's grant of summary judgment as to the TCPA claim, holding that the TCPA does not allow unilateral revocation of consent given in a bargained-for contract. The court reasoned that, by permitting plaintiff to unilaterally revoke a mutually-agreed-upon term in a contract would run counter to black-letter contract law in effect at the time Congress enacted the TCPA. View "Medley v. Dish Network, LLC" on Justia Law

Plaintiff filed suit against Bay Point in state court and added DCT as a plaintiff in an amended complaint, alleging that Bay Point's foreclosure of two properties caused him to lose the collateral's value exceeding the debt balance, and to suffer mental anguish. After Bay Point removed to bankruptcy court, the district court affirmed the bankruptcy court's order in favor of Bay Point. Plaintiff and DCT appealed, but then the district court granted DCT's motion to dismiss.The Eleventh Circuit held that plaintiff lacked Article III standing, because he failed to allege a particularized, actual injury. Furthermore, plaintiff was not a person aggrieved. Therefore, plaintiff may not appeal the district court's decision affirming the bankruptcy court's order. View "Thakkar v. Bay Point Capital Partners, LP" on Justia Law

The Eleventh Circuit affirmed the denial of the Chapter 7 Trustee's request to use his powers under the bankruptcy code to avoid Wells Fargo's security interest in debtor's real property. The court rejected the Trustee's argument that, under Georgia law, security deeds in land were required to be attested at least by two witnesses. Rather, the court stated that the deed (1) must be attested by or acknowledged before an officer and (2) must also be attested or acknowledged by one additional witness. The court explained that the use of the word "or" in "attested or acknowledged" plainly contemplates these two acts as alternative methods of authenticating a security deed.In this case, where the language of the statute is plain and unambiguous, the court stated that judicial construction was not only unnecessary but forbidden. Furthermore, this common-sense reading of the statute was reflected in Supreme Court of Georgia precedent. View "Gordon v. Wells Fargo Bank, NA" on Justia Law

The Eleventh Circuit affirmed the district court's determination that debtor's Massachusetts income tax return debt is dischargeable in bankruptcy. The court held that 11 U.S.C. 523 does not incorporate a mandatory precondition that a tax return must be timely filed to be dischargeable; under Massachusetts tax law, a late-filed tax return does not automatically cease having the status of a "return" merely because it was filed late; and, whether or not section 523 incorporates the Beard test or Massachusetts state law, the bankruptcy court's discharge order included debtor's tax debt. View "Massachusetts Department of Revenue v. Shek" on Justia Law

Plaintiffs filed suit against Rushmore, seeking class certifications on claims arising under the Fair Debt Collection Practices Act (FDCPA) and the Florida Consumer Protection Practices Act (FDCCPA). Plaintiffs alleged that Rushmore made false, deceptive, and misleading representations when it sent mortgage statements and attempted to collect on their mortgage debt after they received a Chapter 7 discharge. The district court denied class certification.The Eleventh Circuit held that the district court abused its discretion because at the first step of the predominance analysis it erroneously classified the question of whether the Bankruptcy Code precluded or preempted the FDCPA and FCCPA claims as raising an individual, rather than common, issue. Therefore, the court vacated the district court's judgment and remanded for the district court to reconsider plaintiffs' class certification motion in light of the court's conclusion that this question was common to all class members. View "Sellers v. Rushmore Loan Management Services, LLC" on Justia Law

The Eleventh Circuit affirmed the bankruptcy court's order revoking the discharge of debtors' debt. Debtors claimed that the trustee had pre-discharge knowledge of the alleged conduct that resulted in the revocation.The court held that the "lack-of-knowledge" requirement that is explicitly contained in one subsection of the bankruptcy statute, 11 U.S.C. 727(d)(1), cannot be read into the adjacent subsection of the same statute, 11 U.S.C. 727(d)(2), thereby barring revocation. The court need not reach the factual determination of whether the trustee had prior knowledge of the fraud issue, because it would be inappropriate to rewrite section 727(d)(2) to include that requirement. Therefore, the court held that the bankruptcy court and district court correctly interpreted section 727(d)(2). View "Thompson v. Gargula" on Justia Law