- 11 U.S.C.
Lange v. Schropp (In re Brook Valley IV J.V.)
Aug
15
2006
Ruling
Principals of debtor who formed new entities which purchased debtor's properties at foreclosure sale without disclosure to court ordered to turn over excess proceeds and profits.
Procedural posture
Appellee bankruptcy trustee brought an adversary proceeding against appellants, the principals of bankruptcy debtor partnerships, alleging that the principals breached fiduciary duties by secretly purchasing real properties of the debtor for their own benefit. The principals appealed the judgment in favor of the trustee entered in the Bankruptcy Court for the District of Nebraska.
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