Foellmi v. Ries (In re Foellmi)

Summarized by ,
13 years 7 months ago

Citation:

Foellmi v Ries (In re Foellmi), Case No. 12-6003, ---B.R. ---- (8th Cir. B.A.P. July 31, 2012)(slip opinion) (Venters, J.)

Tag(s):

Ruling:

REVERSING the Bankruptcy Court, the BAP analyzed Minn. Stat § 550.37, Subd. 24 using the Supreme Court’s instructions on how to interpret 11 U.S.C. § 522(d)(10)(E), which deals with nearly identical subject matter and has very similar language. The BAP held that an employee benefit plan that distributes limited partnership units is “similar” to a stock bonus plan and that a provision awarding limited partnership units to all employees who had been with the company for a minimum number of years satisfies the statute’s requirement that the payment be on account of “length of service.” The BAP remanded for a factual determination of the final statutory requirement, whether any value in excess of $66,000.00 was “reasonably necessary for the support of the debtor and any spouse or dependent of the debtor.”

Procedural context:

Appeal from the Bankruptcy Court for the District of Minnesota (O’Brien, J.), which had sustained the Trustee’s objection to the Debtor’s claimed exemption.

Facts:

Debtor listed on Schedule B twenty units in a limited partnership called “Convenience Store Investments,” an affiliate of Kwik Trip, Inc. Units in the limited partnership were distributed once a year to Kwik Trip employees with five or more years of continuous service (two or more years for management employees). Units were not otherwise available and could be liquidated only if the General Partner agreed to redeem the units. Based on the twenty units, Debtor received an allocation of partnership profits of $2,160.00 in 2009 and $4,580.00 in 2010. Debtor also received an allocation of net rental real estate losses of $6,640.00 in 2009.

Judge(s):

Federman, Venters, and Saladino, Bankruptcy Appellate Panel Judges

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