Talal Qais Abdulmunem Al Zawawi v. Colin Diss, et al
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- 22-11024 (11th Circuit, Apr 03,2024) Published
- Tag(s):
-
- Ruling:
- While agreeing that a strict application of 11 U.S.C. § 109(a) would prohibit an individual who does live in the United States from being a debtor in a Chapter 15 proceeding, the Eleventh Circuit relied on prior precedent and held that § 109(a) does not determine whether a foreign insolvency proceeding may proceed in US bankruptcy courts under Chapter 15.
The Eleventh Circuit stated that 11 U.S.C. § 1502(1) [incorrectly cited as § 1502(a) at p. 37], which defines "debtor" for Chapter 15, reinforces the conclusion that § 109(a) did not preclude recognition of the foreign proceeding.
- Procedural context:
- The foreign representatives of a U.K. bankruptcy filed a Chapter 15 petition in the United States Bankruptcy Court for the Middle District of Florida. The debtor moved to dismiss the case, arguing that he was not eligible to be a debtor under 11 U.S.C. § 109(a). The bankruptcy court disagreed, and the debtor appealed to the district court.
The district court affirmed the bankruptcy court, and the debtor timely appealed.
- Facts:
- The Chapter 15 debtor, Talal Qais Abdulmunem Al Zawazi ("Al Zawazi"), is a citizen of Oman who, along with his then-spouse, Leila Hammoud ("Hammoud"), moved to the United Kingdom. While residing in the United Kingdom, Hammoud petitioned for dissolution of marriage in the U.K. Al Zawawi filed a statement of net worth indicating that he owned assets in the United States.
The UK court granted a divorce decree in 2019 and granted Hammoud a judgment for £24,075,000. The UK court then entered an order freezing Al Zawazi's assets, wherever located, until Al Zawazi satisfied the judgment.
Al Zawazi, in fact, indirectly owned assets in the United States. He owned shares in QAPA Investing Corporation NV ("QAPA"), which owns several Florida entities that own real estate in and around Winter Park, Florida, worth about $94 million.
In 2020, after Al Zawazi failed to make payments on the judgment, the UK court adjudged Al Zawazi to be bankrupt and appointed three persons to act as co-trustees of the bankruptcy.
In 2021, the co-trustees filed a Chapter 15 petition in the United States Bankruptcy Court for the Middle District of Florida.
Al Zawazi moved to dismiss the Chapter 15 case, arguing that he was not eligible to be a debtor under 11 U.S.C. § 109(a).
- Judge(s):
- LUCK, LAGOA, and TJOFLAT, Circuit Judges
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