In re Aura Systems, Inc.

347 B.R. 720 (2006)

Study Aids
Case Briefs Overview
Casebooks
Case Briefs
I
From our private database of 46,300+ case briefs, written and edited by humans—never with AI.

In re Aura Systems, Inc.

United States Bankruptcy Court for the Central District of California
347 B.R. 720 (2006)

DH

Facts

In 2005, Aura Systems, Inc. (Aura) (debtor), a Delaware corporation, filed for Chapter 11 bankruptcy. During bankruptcy proceedings, certain claimants (the claimants) (creditors) claimed secured-creditor status related to a prior lawsuit. More specifically, the claimants’ proof of claim claimed a security interest in Aura’s accounts receivable, equipment, and inventory pursuant to a judgment lien. The claimants had sued Aura approximately 10 years earlier for alleged violations of federal securities laws related to their purchase of Aura common stock. The parties reached a settlement, and Aura agreed to pay the claimants $4 million in monthly installments. However, in 2002, Aura defaulted on the monthly installments. Accordingly, the claimants obtained a $923,250 judgment against Aura for the unpaid installments. Before Aura filed for bankruptcy, the claimants filed a notice of judgment lien with the California secretary of state. Aura objected to the claimants’ claim and moved for summary judgment on the ground that the filing of a notice of judgment lien with the California secretary of state against a non-California corporation with property in California did not create a judgment lien.

Rule of Law

Issue

Holding and Reasoning (Bufford, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 820,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 820,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 820,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,300 briefs - keyed to 988 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership

Casebooks

Commercial Law

Key Terms

Related Videos