US Bankruptcy Court EDWI Docket Feed

Long Lee v Mailee Hang - Summary Judgment Denied, Chapter 7

The bankruptcy court denied cross-motions for summary judgment in Long Lee et al. v. Mailee Hang and Vang Tou Hang (Adversary No. 24-2130-rmb), finding that neither party sustained their burden and that material factual disputes remain regarding whether the debtors' $261,871.17 mortgage debt is nondischargeable under 11 U.S.C. § 523(a)(2)(A). The Lee Parties, victims of a fraudulent investment scheme by Kay Yang who wired $1,770,000 to AK Equity Group LLC in 2019, seek to recover funds that Yang allegedly used to make below-market loans to the debtors. The court also denied the Lee Parties' motion to amend their complaint, finding the amendment would prejudice the debtors and is futile.

Chapter 11 Court Denies Motion to Suspend Proceedings

The US Bankruptcy Court for the Eastern District of Wisconsin denied a motion by creditors Computershare Trust Company, N.A. and Wisconsin & Milwaukee Hotel Funding LLC (Lenders) to suspend all proceedings in the Chapter 11 case of Wisconsin & Milwaukee Hotel LLC under Rule 8007 pending resolution of their appeal of a December 5, 2025 order. The court held that the appeal does not divest it of jurisdiction over confirmation of the debtor's fourth amended plan of reorganization and related matters. The Lenders failed to show their appeal is likely to succeed on the merits, that continuation would cause irreparable harm, or that suspension would serve efficient judicial administration. Proceedings will continue through plan confirmation.