Case Type:
Case Status:
22-2500 (7th Circuit, Apr 27,2023) Published
Agreeing with the U.S. Bankruptcy and the U.S. District Courts for the Northern District of Illinois (BC and DC), the U.S. Court of Appeals for the Seventh Circuit (Circuit) found no error in the BC's use of a preponderance of the evidence standard of proof, rather than clear and convincing evidence, when it decided equitable ownership of the stake in a company formally held by her mother in fact belonged to Jelena Dordevic (DR) and was thus subject to turnover, but rejected the request for sanctions by the trustee for the DR's estate (TR).
Procedural context:
After a three-day trial, the BC decided that the Trustee had established by a preponderance of the evidence that the DR was the equitable owner of her mother's 50% interest in PHMX LLC (PHMX), a Florida company organized to produce injectable pharmaceuticals, Jorgovanka appealed to the district court, which affirmed the bankruptcy court
Prepetition, the DR's mother was 50% record interest in PHMX, with the other half of the company owned by a third party, Shogher Zargaryan.
Michael B. Brennan; Michael Y. Scudder; and Thomas Kirsch

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