Nifong Loses Again in Bankruptcy Decision

Federal Judge upholds Nifong bankruptcy ruling

WRAL TV is reporting that the disgraced, disbarred, disheveled, and former Durham DA Nifong has lost in his bid to hide behind bankruptcy to avoid civil lawsuits.

Greensboro, N.C. — A U.S. District Court judge has agreed with a bankruptcy judge's ruling that a civil rights lawsuit against Duke lacrosse prosecutor Mike Nifong can move forward.

The former Durham County district attorney filed for bankruptcy in January, which temporarily protected him from the civil litigation brought by the three Duke University lacrosse players prosecuted on charges of rape, sexual assault and kidnapping.

Following a bankruptcy hearing in February, U.S. Bankruptcy Judge William L. Stocks put the bankruptcy case on hold until the civil action was resolved.

In June, Nifong appealed Stocks' ruling.

But U.S. District Judge James Beaty, in his ruling Thursday, agreed with Stocks that if the claims against Nifong result in a judgment, the matter would then be referred to bankruptcy court for further proceedings.... WRAL TV

See Judge Beaty's Ruling

Ramifications

Blog Hooligan "sdsgo" had this observation

"This was an even better ruling than expected. By taking Judge Stocks’ traditional versus non-traditional physical injury issue off the table, Judge Beaty made today’s ruling virtually appellate-proof. The appellate court would look at the physical injury issue as a question of law to be reviewed de novo, whereas Judge Beaty’s decision based on judicial economy could only be challenged for abuse of discretion. "

Hat Tip" Clowns, sdsgo

Plaintiffs attorneys reply to Nifong's appeal

The attorneys for the three former Duke University Lacrosse players file a brief in response to Nifong's appeal to overturn the Bankruptcy Judge's decision which disallowed his attempt to escape the civil lawsuit against him by filing bankruptcy.

"Nifong admits that his bankruptcy filing was not an attempt to work out debts with creditors but a tactic to short-circuit the District Court action and obtain a discharge that would free him to avoid responsibility for his alleged wrongdoing," a motion filed on Monday in U.S. District Court states. WRAL

In contrast to Nifong's memo of 15 August where he quotes Shakespeare by invoking the memory of Shylock the Plaintiffs stuck with legal precedent and quoted the law.

Brief of Plaintiffs-Appealles

Supporting Exhibit

See LieStopper's Forum for Discussion

Guitar Troubles

The disgraced, disbarred, and former Durham DA Nifong had hoped to spend his summer playing with his collection of guitars safely removed from bankruptcy. However it appears his plan has broken a few strings. WTVD Reporter Tamara Gibbs had this for us.

DURHAM (WTVD) -- No sale is final. That's the lesson former prosecutor Mike Nifong learned in federal bankruptcy court in Durham Thursday.

His hopes were dashed when a judge decided to put the disbarred district attorney's prized guitar collection up for auction after he'd written a $3,389 check to keep it...

Court officials say Nifong inadvertently omitted a Paul Reid Smith guitar, a Fender Deluxe guitar, and a Martin guitar from his estate when he filed for bankruptcy. Records show he was given the option to add his collection to his estate to settle his debt or to purchase the guitars at their full value. WTVD

As soon as the details of auction are announced we will be posting them. It's your chance to get a piece of "Durham history!"

Nifong's Slump Continues

In another swing and a miss, the Disbarred, Disgraced, and Former Durham DA Mike Nifong lost today in his Bankruptcy Court bid.

Former Duke Players Can Sue Nifong Outside Bankruptcy (Update1)

By Dawn McCarty

May 27 (Bloomberg) -- Three former Duke University lacrosse players cleared of rape charges brought by former prosecutor Michael Nifong can proceed with their lawsuit against him outside bankruptcy court, a judge ruled.

The former North Carolina district attorney, who lost his law license for mishandling the criminal case against the players, sought bankruptcy protection Jan. 15 in federal court in Durham, North Carolina. Nifong filed for Chapter 11 protection in hopes of ending the players' legal claims against him.

``It is clear that all of the claims should be tried in the same case in the same court in the interest of judicial economy and to avoid unnecessary and undue burden on the parties,'' U.S. Bankruptcy Judge William Stocks said in papers filed today.

Under bankruptcy law, all litigation against a company or individual who seeks protection is put on hold while the case is pending. A judge can grant a request to allow the claims to proceed outside bankruptcy court in some instances.

The case is In re Michael B. Nifong, 08-80034, U.S. Bankruptcy Court, Middle District of North Carolina (Durham). Bloomberg News Service

One of the Blog Hooligans, who is an attorney with expertize in this matters, had this comment on the LieStoppers Meeting Place.

A short version of the law of bankruptcy. When a petition is filed, an automatic stay issues. The stay, stops all attempts at collection, including tort claims. By law, no further action may taken until the Bankruptcy Court decides if the particular claim is a proper subject for bankruptcy or not. I wrote on the old site that I thought it was not because of the willful and malicious element of the conduct. Nifong made his own case more difficult by claiming that he was simultaneously not malicious or wilful and not liable. While in theory those are not mutually exclusive claims, given the facts of this case it was very difficult to argue one that he was not malicious or wilful and at the same time he was not liable to the players. I think Judge Stocks (of the Bankruptcy Court) agreed with me. Thus he, in the language of bankruptcy, he abandoned the litigation. That is to say, he sent it back to the District Court because it did not belong in bankruptcy. Walt-in-Durham

Court's Memorandum Opinion

Hat Tip: Walt-in-Durham, sdsgo

Round 1: Bankruptcy Loss for Nifong

The disbarred, disgraced, and former DA Nifong continued his legal losing streak in his bid to weasel out of having to confront his misdeeds in the civil lawsuit filed against him and his multiple co-defendants. Michael D. West, a bankruptcy administrator, filed a statement that Nifong should be "presumed to be an abuse" because his annual income would be higher than federal limits.

The News-Observer reported.

Michael D. West, a bankruptcy administrator, filed a statement in the case late last week.

Nifong's case, West said in his statement, should be "presumed to be an abuse" because his annual income would be higher than federal limits.

The administrator's statement is not a ruling. But if West follows up with a motion to dismiss, and if a judge agrees, that could make it more difficult for Nifong to hide in bankruptcy court from the three exonerated lacrosse players who are suing him.

In his bankruptcy protection petition, Nifong listed the monthly income for him and his wife as $9,209.96 -- he makes $4,957.48 in pension and retirement income, and she makes $4,252.48.

Shortly after the bankruptcy administrator filed his statement, Jim Craven, Nifong's lawyer, amended court documents to reclassify his client's potential debt as non-consumer debt, which would raise the allowable income level and possibly keep the case in bankruptcy court.

After filing his statement on Feb. 14, West, the bankruptcy administrator, has up to 30 days to ask a judge to either dismiss the case or convert it to another form of bankruptcy.

Nifong filed for Chapter 7 bankruptcy protection in federal court on Jan. 15, the day by which he was supposed to respond to a civil lawsuit brought by Dave Evans, Collin Finnerty and Reade Seligmann, the three lacrosse players he pursued in criminal court for more than a year.

In their suit, the exonerated players allege a conspiracy by Nifong, the city of Durham, the DNA laboratory hired by Nifong and others to bring gang-rape allegations that were "a total fabrication." News-Observer


Heard around Town
It was reported on the LS Forum by a Durham citizen that construction workers were seen working inside Nifong's personal residence. Rumours of a Bat Cave construction were dismissed.