Bankr. W.D.N.C.: In re VR King Construction- Reasonable Attorney Fees under N.C.G.S. § 6-21.6 and 11 U.S.C. § 506(b) Ed Boltz Mon, 12/13/2021 - 02:20 Summary: The bankruptcy court allowed Y2 Yoga to file a claim for post-petition attorneys fees pursuant to N.C.G.S. § 6-21.6(f). When that amount exceed the judgment amount upon which the claim was based, VR King objected that such was prohibted as the award of reasonable attorney’s fees may not exceed the amount in controversy. The bankruptcy court rejected this interpretation, as § 6-21.6 indicates that the amount in controversy does not equate to the judgment obtained by referencing both the “amount in controversy” and the “results obtained” as factors courts should consider in determining reasonable attorney’s fees and expenses. Further, the legislative history indicated that prior to 2015, this provision was limited by the phrase "may not exceed the monetary damages awarded" but that was removed. The Trustee also objected that, among other reasons, the total fees were unreasonable under § 6-21.6 , but this was dismissed as the Trustee did not address the specific factors of that statute, which include: (1) The amount in controversy and the results obtained,(2) The reasonableness of the time and labor expended, and the billing rates charged, by the attorneys, (3) The novelty and difficulty of the questions raised in the action, (4) The skill required to perform properly the legal services rendered, (5) The relative economic circumstances of the parties, (6) Settlement offers made prior to the institution of the action, (7) Offers of judgment pursuant to Rule 68 of the North Carolina Rules of Civil Procedure and whether judgment finally obtained was more favorable than such offers, (8) Whether a party unjustly exercised superior economic bargaining power in the conduct of the action, (9) The timing of settlement offers, (10) The amounts of settlement offers as compared to the verdict, (11) The extent to which the party seeking attorneys’ fees prevailed in the action, (12) The amount of attorneys’ fees awarded in similar cases, and (13) The terms of the business contract. The bankruptcy court did, however, then evaluate reasonableness under § 506(b), looking to the twelve Johnson factors, which are as follows:(1) the time and labor required in the case, (2) the novelty and difficulty of the questions presented, (3) the skill required to perform the necessary legal services, (4) the preclusion of other employment by the lawyer due to acceptance of the case, (5) the customary fee for similar work, (6) the contingency of a fee, (7) the time pressures imposed in the case, (8) the award involved and the results obtained, (9) the experience, reputation, and ability of the lawyer, (10) the “undesirability” of the case, (11) the nature and length of the professional relationship between the lawyer and the client, and (12) the fee awards made in similar cases. The bankruptcy court then, in the following 14 pages, reviewed all of these criteria (many of which are virtually identical) finding the attorneys' fees were reasonable. For a copy of the opinion, please see: In-re-VR-KingDownload Blog comments Blog tags attorneys' fees Category North Carolina Bankruptcy Cases Western District

Summary: Prior to filing bankruptcy, Ms. Butler filed a charge with the EEOC alleging that she was subjected to sexual harassment and then wrongfully terminated by Home Depot. A settlement was reached with required Home Depot to pay the total … Bankr. M.D.N.C.: In re Butler- Lost Wages from Sexual Harassment Claim Not Exempt Read More » The post Bankr. M.D.N.C.: In re Butler- Lost Wages from Sexual Harassment Claim Not Exempt appeared first on .

E.D.N.C.: Rouse v. Nutrien AG Solutions, Inc.- Liquidation Test for Hardship Discharge Based on Values at Confirmation Ed Boltz Mon, 12/13/2021 - 01:56 Summary: Mr. Rouse filed a Chapter 12 bankruptcy in November 2017, with a plan negotiated with his creditors, including Nutrien, being confirmed on May 23, 2017, with general unsecured creditors to receive $50,687. Then on June 27, 2020, Mr. Rouse was shot multiple times by an assailant who murdered two other people before killing himself. Due to his devastating injuries, Mr. Rouse spent more than a month hospitalized, required multiple surgeries and on-going physical therapy, all of which will prevent him from farming for the foreseeable future. Mr. Rouse, who had paid $43,465.64 to general unsecured creditors, then sought a hardship discharge pursuant to 11 U.S.C. § 1228(b) and Nutrien objected, arguing that Mr. Rouse was $7,221.36 short of meeting the liquidation test. Mr. Rouse urge a reanalysis of the liquidation test, taking into account the $18,000 paid to his attorneys. The bankruptcy court rejected this argument, as $10,000 in attorney's fees had already been incorporated into the liquidation test at confirmation, and denied the hardship discharge finding that Mr. Rouse owed $11,339.62 to general unsecured creditors, which included accrued interest. The district court affirmed, finding that "the statutory language recognizes the timing of the confirmation of a plan of reorganization, i.e., before the plan's effective date, versus a motion for discharge from that plan, i.e., after the plan's effective date." Accordingly, the liquidation test for both confirmation and hardship discharge look at the assets at the time of confirmation. Commentary: It is unclear from the Claims Registry how much of the $11,339.62 that Mr. Rouse owed would have been paid to Nutrien, but it hopefully is enough to justify opposing this hardship discharge for a victim of traumatic violence. That aside, this decision should help both Chapter 12 and Chapter 13 debtors with hardship discharges, as an increase in the value of assets during the case should likewise not be considered. For a copy of the opinion, please see: Rouse-v.-Nutien-AG-SolutionsDownload Blog comments Category Eastern District Federal Cases

Summary: Hunter Mill West signed a one-year note in favor of BDC (Catjen’s predecessor-in-interest), which included a default interest rate of 24% in the event judgment was ever entered against HMW for default. When HMW did, of course, default it … 4th Cir.: Catjen v. Hunter Mill West, L.C.- Issue Preclusion from Bankruptcy Claim Orders Read More » The post 4th Cir.: Catjen v. Hunter Mill West, L.C.- Issue Preclusion from Bankruptcy Claim Orders appeared first on .

Summary: The Hedgepeths own a home in the Smokey Mountain Country Club, which is subject to the Declarations governing the Smokey Mountain Country Club Association requiring (certainly among innumerable other homeowner association expectations, demands and such) that member pay monthly … N.C. Ct. of Appeals: Hedgpeth v. SMCC Clubhouse, LLC- State Court Lacks Subject Matter Jurisdiction over matters pending in an Open Bankruptcy Case Read More » The post N.C. Ct. of Appeals: Hedgpeth v. SMCC Clubhouse, LLC- State Court Lacks Subject Matter Jurisdiction over matters pending in an Open Bankruptcy Case appeared first on .

Summary: There is often an assertion that there is no legislative history for North Carolina exemptions. And while there certainly could have been substantially more, both in terms of quantity and quality, after both Kelly Newcomb and I separately spent … North Carolina Exemptions Legislative History Read More » The post North Carolina Exemptions Legislative History appeared first on .

About: American Predatory Lending and the Global Financial Crisis is a multi-method interdisciplinary team working under the Bass Connections project within Duke University. Over the past two years, this student-faculty undertaking has explored the state-level dynamics leading up to the 2008 Crisis. … American Predatory Lending: Oral Histories of the 2008 Housing Crisis Read More » The post American Predatory Lending: Oral Histories of the 2008 Housing Crisis appeared first on .

Summary: The plaintiffs, all North Carolina residents, borrowed money at allegedly illegal interest rates from one of the out-of-state defendants and asked the Court to compel arbitration of their predatory lending claims pursuant to arbitration provisions in the loan agreements. … M.D.N.C.: Strange v. Select Mgmt. Res.- Consumers Demand for Arbitration Read More » The post M.D.N.C.: Strange v. Select Mgmt. Res.- Consumers Demand for Arbitration appeared first on .

Summary: Without notifying Mr. Harris, Piedmont Finance reported to a credit reporting agency that it repossessed his truck and, when it learned the report was incorrect, Piedmont Finance did not promptly notify the credit agency nor take steps to remove … E.D.N.C.: Harris v. Piedmont Finance CNAC- Statute of Limitation for FCRA and Arbitration Read More » The post E.D.N.C.: Harris v. Piedmont Finance CNAC- Statute of Limitation for FCRA and Arbitration appeared first on .

Summary: Ruby Taylor filed a Chapter 13 bankruptcy on May 24, 2019, with a plan confirmed that paid both the mortgage for her home and the payment on her car directly and estimated no dividend to general unsecured creditors, of … E.D.N.C.: Taylor v. Logan- Proceeds from Sale of Homestead Read More » The post E.D.N.C.: Taylor v. Logan- Proceeds from Sale of Homestead appeared first on .