Guthrie v. 11 East 36th, LLC (In re 11 East 36th, LLC)

Case Type:
Business
Case Status:
Affirmed
Citation:
16-1233, --- Fed.Appx. ----, 2016 WL 7323983 (2nd Circuit, Dec 16,2016) Not Published
Tag(s):
Ruling:

Affirmed District Court judgment affirming Bankruptcy Court expunging claim and District Court declining to consider constructive trust argument. Court determined that: a.) creditor lacked collateral and  no claim against the debtor, which did not undertake the third-party’s obligation to creditor. b.)  Court would not estimate claim against debtor as it was speculative that i.) the principal obligor would default; and ii.) collateral pledged by others would not remove need for recourse against the debtor

Procedural context:

Appeal from District Dstrict Court affirming Bankruptcy Court expunging proofs of claim

Facts:

Debtor and others provided collateral for loan to a third-party.  Debtor filed for chapter 11.  Creditor’s misleading financing statement failed to perfect interest security interest in collateral. Debtor which did not undertake the third-party’s obligation to creditor nor benefit by providing collateral.

Judge(s):
DENNIS JACOBS, JOSÉ A. CABRANES, BARRINGTON D. PARKER,

ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!

About us in numbers

3061 in the system

2954 Summarized

0 Being Processed