Bank of Commerce & Trust Co. v. Schupbach

Summarized by Steven Mulligan , Coan, Payton & Payne, LLC
10 years 9 months ago

Citation:

Bank of Commerce & Trust Co. v. Schupbach, et al. (In re Schupbach), Case No. 13-068 (10th Cir. May 19, 2015). Unpublished.

Tag(s):

Ruling:

Creditor’s appeal of dismissal of non-dischargeability claims are rendered constitutionally moot when reorganization plan treats creditor’s claim as satisfied in full and creditor does not object.

Procedural context:

Appeal from the 10th Circuit BAP’s decision affirming the Bankruptcy Court’s dismissal of creditor’s non-dischargeabilty claims under section 523(a)(2) as being untimely. While the appeal was pending, debtors’ plan was confirmed stating the creditor’s claim was satisfied in full. Debtors sought dismissal of the appeal on the basis that it was rendered constitutionally moot. Reviewed de novo.

Facts:

Debtors owned a company that was engaged in the business of buying, renovating, and renting or reselling homes in Wichita, Kansas. The company filed chapter 11 and three months later, the debtors filed chapter 13 subsequently converting their case to chapter 11. Creditor filed identical claims in both cases and filed a non-dischargeability action against the debtors. Through the entity’s plan, the creditor received all of debtors’ interest in real property in which the creditor had a first mortgage and which were the subject of the non-dischargeability action. Debtors’ plan treated the creditor’s claim as being satisfied in full in the entity’s plan since the collateral value exceeded the creditor’s claim. The creditor did not object to the plan and it was confirmed.

Judge(s):

Briscoe, McKay, Phillips (McKay)

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