Justia Bankruptcy Opinion Summaries

Articles Posted in Connecticut Supreme Court

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The Supreme Court affirmed the judgment of the trial court granting motions to dismiss Plaintiff's state law claims for vexatious litigation and unfair and deceptive business acts or practices during Plaintiff's underlying bankruptcy proceeding, holding that the trial court properly dismissed the claims for lack of subject matter jurisdiction because the claims were preempted by federal bankruptcy law. Plaintiff, who had previously filed a bankruptcy petition in the United States Bankruptcy Court, brought this action asserting claims of vexatious litigation and violation of the Connecticut Unfair Trade Practices Act, Conn. Gen. Stat. 42-110a et seq. The trial court dismissed the claims. The Supreme Court affirmed, holding that Congress implicitly preempted state law actions by occupying the field of bankruptcy law and that, in the field of law, the federal interest is so dominant that federal law is assumed to preclude enforcement of state laws on the subject. View "Metcalf v. Fitzgerald" on Justia Law

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The Supreme Court reversed the judgment of the trial court in favor of Defendant on Plaintiff’s complaint and Defendant’s counterclaim for damages and declaratory judgment. This case stemmed from a purchase agreement entered into by the parties in which Plaintiff was to provide various equipment and services to Defendant for a telecommunications switch room. The Supreme Court held (1) the trial court incorrectly concluded that Plaintiff breached the purchase agreement by filing a petition for bankruptcy protection under chapter 11 of the United States Bankruptcy Code; and (2) the trial court erred in determining that Defendant was within its rights to terminate the purchase agreement upon Plaintiff’s initiation of bankruptcy proceedings. View "CCT Communications, Inc. v. Zone Telecom, Inc." on Justia Law

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After the bankruptcy court granted Plaintiff a discharge of her debts, Plaintiff filed this action against the named defendants, alleging misuse of funds of a trust established by her mother. Plaintiff subsequently filed a motion to substitute the bankruptcy trustee as the proper plaintiff. The trial court denied the motion, concluding that Plaintiff failed to show that she had brought the action in her own name due to a mistake. The court then dismissed the action for lack of subject matter jurisdiction. While Plaintiff’s appeal was pending, the bankruptcy court granted the bankruptcy trustee’s motion to abandon the underlying cause of action. The Appellate Court affirmed. The Supreme Court dismissed Plaintiff’s appeal as moot, holding that because the bankruptcy trustee abandoned the underlying action and Plaintiff no longer was seeking to substitute the trustee as party plaintiff, resolution of this claim would afford Plaintiff no practical relief. View "Gladstein v. Goldfield" on Justia Law