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§ 554

In re Holliday

Ruling
Unscheduled judgment claim against third party was not abandoned upon closing of no asset case.
Procedural posture

After debtor's chapter 7 bankruptcy proceeding was closed on a "no asset" determination, the trustee filed a motion for a redetermination of the estate's assets based on debtor's ownership of judgments against a third party (maker) that arose from a prepetition cause of action. At issue was whether the claim against the maker had been abandoned by operation of law under 11 U.S.C. § 554(c).

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opinion summary, case decided on August 31, 2006 , LexisNexis #1206-031

Graupner v. Town of Brookfield

Ruling
Opening and closing of bankruptcy case did not effect abandonment of debtor's undisclosed labor law cause of action
Procedural posture

Defendants, a town and associated officials, filed a motion for summary judgment in connection with a civil action for money damages brought by plaintiff police officer pursuant to 42 U.S.C. § 1983 for alleged violation of his constitutional rights and various state law claims.

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opinion summary, case decided on August 09, 2006 , LexisNexis #0906-093

In re Jupiter

Ruling
Creditor's application to compel trustee to abandon estate's interest in debtor's residence was granted.
Procedural posture

A creditor filed an application for an order compelling the chapter 13 trustee to abandon the bankruptcy estate's interest in a debtor's residence, pursuant to 11 U.S.C. § 554(b). The debtor objected to the application.

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opinion summary, case decided on July 07, 2006 , LexisNexis #0806-111

In re Derivium Capital LLC

Ruling
Trustee was granted application to abandon estate's interest in certain causes of action since they were burdensome and of inconsequential value.
Procedural posture

A chapter 7 trustee filed an application, pursuant to 11 U.S.C. § 554(a), to abandon the bankruptcy estate's interest in any causes of action against the IRS and any state taxing authority, pursuant to 11 U.S.C. § 505. The debtor's managing member and the parties to the stock transactions objected on the ground that the trustee had a fiduciary obligation to protect their interests.

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opinion summary, case decided on July 07, 2006 , LexisNexis #0806-133

In re Locklair

Ruling
Trustee was denied motion to reopen case since trustee technically had abandoned surplus from property sale.
Procedural posture

A trustee filed a motion to reopen the debtors'chapter 7 case to allow for the administration of surplus funds resulting from the sale of their real property by a creditor at public auction.

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opinion summary, case decided on May 18, 2006 , LexisNexis #0706-063

Russell v. Tadlock (In re Tadlock)

Ruling
Debtors were entitled to a surplus that exceeded liens on their foreclosed home, and the trustee was not entitled to reopen the case since the trustee had not moved to except the property from abandonment prior to the close of the case.
Procedural posture

After appellant debtors listed their home with liens exceeding its value, a creditor's motion to proceed with foreclosure was granted, appellee trustee filed a report of no distribution, and the case was closed. When the home sold for more than the remaining liens, the Bankruptcy Court for the District of Wyoming revoked the order of abandonment and declared that the surplus was the property of the estate. The debtors appealed.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on March 10, 2006 , LexisNexis #0306-135

Biesek v. Soo Line R.R. Co.

Ruling
Court rejected motion to reopen a judgment against a debtor since the debtor had not disclosed the potential litigation in the bankruptcy case and the trustee had not properly abandoned the creditors'claims.
Procedural posture

Appellant debtor sought review of judgments from the District Court for the Western District of Wisconsin, which dismissed the debtor's suit to enforce a settlement offer from appellee employer and which denied the debtor's motion under Fed. R. Civ. P. 60(b)(2) to reopen the judgment.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on March 06, 2006 , LexisNexis #0306-096

In re Res. Tech. Corp.

Ruling
Lenders'effort to assume debtor's rights in an executory contract by proposing the trustee abandon the contract were rejected since rights in an executory contract could be performed or breached not abandoned and then transferred.
Procedural posture

Appellant lenders challenged an order of the U.S. District Court, affirming a settlement between appellee debtor, a corporation that collected methane from landfills, and its promisee, a landfill. The debtor gave the landfill a promissory note as part of a settlement after the debtor failed to build a gas-collection system for the landfill.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on December 09, 2005 , LexisNexis #0106-024