Carey Ebert v. Michael Gustin
- Summarized by Stephen Starks , Phelan Hallinan Diamond & Jones PLLC
- 6 years 10 months ago
- Case Type:
- Business
- Case Status:
- Affirmed in part and Reversed in part
- Citation:
- 18-10382 (5th Circuit, Apr 30,2019) Published
- Tag(s):
-
- Ruling:
- Chapter 11 Trustee lacked Article III standing to pursue a claim where the Debtor actually benefited from the alleged fraud/negligence and the Debtor did not suffer an injury.
- Procedural context:
- Appeal from a jury verdict in The united States District Court for The Northern District of Texas
- Facts:
- Prepetition, Debtor entered into a contract that the Chapter 11 Trustee asserted was a fraudulent act when the nondebtor contracting party was not paid. In fact, the Debtor suffered no damages as a result of the transaction and actually benefited from it because it received, and used, the equipment under the prepetition contract and later sold it in the Chapter 11 case. The nondebtor contracting party suffered damages, but not the Trustee/Debtor.
- Judge(s):
- Barksdale, Southwick and Haynes
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