McGann v. Jagow
- Summarized by Jonathan Batiste , Rensselaer Polytechnic Institute
- 2 months 1 day ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- No. 25-1066 (10th Circuit, Dec 03,2025) Published
- Tag(s):
-
- Ruling:
- Debtor’s receipt of a turnover order and her failure to comply with its express terms serve as grounds for the bankruptcy court to hold her in contempt and sanction her. Appellants must directly address a bankruptcy court’s reasons for denying motions to dismiss. Conclusory assertions are insufficient for showing that courts have abused their discretion. Allegations and arguments about aspects of bankruptcy cases using facts outside of the scope of appeal are ineffective.
- Procedural context:
- Debtor filed for chapter 7 bankruptcy in December 2020. The bankruptcy court granted her a discharge in March 2021. Debtor then tried to convert her chapter 7 case into a chapter 12 or 13 case, but the court denied her motion to convert. Trustee filed a turnover motion to access Debtor's property on August 25, 2023. The bankruptcy court held a hearing on the matter after Debtor responded, and it entered an order in Trustee’s favor on October 24, 2023. The order required Debtor to provide Trustee a key to her property by November 13, 2023. Debtor then filed motions asking the court to reconsider the turnover order and to dismiss her case. Debtor did not provide Trustee with the key by the deadline. She only mailed it to the Office of the United States Trustee on January 31, 2024, after Trustee filed a January 3, 2024, motion for an order to show cause why Debtor should not be held in contempt. The court denied Debtor’s motions for reconsideration and dismissal. The court also found that Debtor had engaged in civil contempt, entitling Trustee to an award of attorney’s fees as a sanction. Debtor then appealed the contempt order and the order denying her motion to dismiss to the bankruptcy appellate panel, which affirmed both orders. She then appealed to the circuit court.
- Facts:
- Sherry Ann McGann (“Debtor”), who owned real property, filed for chapter 7 bankruptcy. She listed four liens on the property. Jeanne Y. Jagow (“Trustee”) sought to employ a realtor to market the property for sale. Trustee settled an adversary proceeding with two of the lienholders. Trustee also sought access to the property via a turnover order requiring Debtor to give Trustee a key to the property. Debtor attempted to circumvent the process by seeking dismissal of her case, asserting that she would pay the two remaining liens and other legitimate creditors. She also asserted that she would not pay certain other claims, nor would she pay Trustee’s administrative expenses. She refused to give the key to Trustee until approximately eleven weeks after the deadline. When she did mail the key, she sent it to the United States Trustee, not the chapter 7 Trustee. The court imposed a sanction on Debtor because of her failure to send Trustee the key. Trustee moved for $7,012.50 in fees after the court decided to award Trustee her attorney’s fees because of Debtor’s non-compliance. On appeal, Debtor did not address or rebut Trustee’s arguments about why the bankruptcy court should have denied Debtor’s motion to dismiss. Debtor also failed to comply with the turnover order’s express terms; thus, she failed to show that the bankruptcy court abused its discretion by finding her in contempt.
- Judge(s):
- McHugh, Moritz, and Rossman
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