Now Updating
Thelma McCoy v. USA

Summarizing by Craig Geno

Han v. Official Committee of Unsecured Creditors (In re Kang)

Case Type:
Business
Case Status:
Affirmed
Citation:
15-2345 (4th Circuit, Nov 29,2016) Not Published
Tag(s):
Ruling:

Based on a signed operating agreement which prohbited transfers,of assets to protect a lender, and the principle that upon forfeiture of status by the Virginia State Corporation Commission all assets of a forfeited LLC pass to the interestholders as trustees in liquidation, the Court held that the Trustee had standing and could prevail on a declaratory judgment action that a transfer of the ownership interests in the LLC by the Debtors was void.  The asset involved was a shopping center in Northern Virginia apparently of some considerable value.

Procedural context:

The case was an appeal from the district court affirming the bankruptcy court's grant of a summary judgment motion that found in favor of the trsutee that the debtor's transfer of an interest was void.

Facts:

A shopping center was owned by an LLC which in turn was owned by another legal entity, which was owned by the Debtors.  The LLC and legal entity were dissolved by the Virginia State Corporation Commission.   That meant the assets devolved to the Debtors as interest holders as trustees in liquidation.  The Debtors sold the interest to a thrid party, the Appellant Yeon Han.  The trustee filed a declaratory judgment action that the transfer by the Debtors was void ab initio.

Judge(s):
Sheed, Duncan, Floyd

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

3089 in the system

2980 Summarized

2 Being Processed