Schier v. Nathan (In re Capital Contracting Co.)

Case Type:
Business
Case Status:
Affirmed
Citation:
No. 18-2219, 2019 WL 2183203 (6th Circuit, May 21,2019) Published
Tag(s):
Ruling:
Lawyer failed to establish Article III standing to appeal bankruptcy court's order approving trustee's final report because lawyer failed to show that it suffered an injury in fact.
Procedural context:
Lawyer filed a claim for unpaid legal fees owed by the debtor company. Trustee representing the estate countered with a malpractice suit. Trustee and lawyer eventually settled. Lawyer agreed to pay the estate $600K and to withdraw its attorney's fees claim. Trustee released lawyer of further malpractice liability. Bankruptcy court approved the settlement. When trustee filed report detailing the distribution of debtor's assets, lawyer objected. Lawyer alleged that the debtor company's right to appeal the state-court judgment qualified as an "asset" of the estate that the trustee should have administered or abandoned. Bankruptcy court overruled the objection. District court dismissed lawyer's appeal on a related but distinct "standing" ground.
Facts:
Lawyer represented company in litigation. The company was hit with a large judgment and filed for bankruptcy a month later.
Judge(s):
Moore, Sutton, Murphy

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