Burgess v. Coffey (In re Wasson Properties, Inc.)

Case Type:
Business
Case Status:
Affirmed
Citation:
BAP No. WO-17-020 (10th Circuit, Dec 15,2017) Not Published
Tag(s):
Ruling:
BAP for 10th Circuit affirmed ruling of bankruptcy court (W.D. Okla.) denying creditors' claim for breach of contract. Bankruptcy court properly considered parole evidence under Oklahoma contract principles to resolve disputed fact issues and interpret contract, including condition subsequent. Debtor properly exercised buy back right and as a result, creditors did not have enforceable contract, or damages for breach.
Procedural context:
Bankruptcy court granted Chapter 7 trustee's objection to creditors' proof of claim, denying claim. Creditors appealed to BAP for 10th Circuit.
Facts:
Appellants were high bidders at a prepetition auction sale of real property owned by debtor. After the auction, within a 48 hour "buy back period," debtor exercised option, returned Appellants' earnest money, and completed a sale to a separate party. Appellants sued debtor in state court, seeking specific performance. Debtor filed for bankruptcy under chapter 7. Appellants filed proof of claim for damages. Chapter 7 trustee objected to claim.
Judge(s):
Karlin, Somers, Jacobvitz

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