Ulrich v. Walker (In re Boates)
- Summarized by David Hercher , U.S. Bankruptcy Court, District of Oregon
- 9 years 7 months ago
- Citation:
- In re Boates, No. AZ-15-1279-KuJaJu (9th Cir. B.A.P. July 8, 2016). Published.
- Tag(s):
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- Ruling:
- A chapter 7 debtor’s rights arising from a prepetition payment to a lawyer are estate property, even if the engagement agreement isn't executory.
- Procedural context:
- The chapter 7 trustee sued the debtor’s lawyer to recover a flat fee paid by the debtor to the lawyer before the petition date for defense of an anticipated nondischargeability action. The bankruptcy court dismissed the trustee’s action against the lawyer. In the BAP’s 6/9/16 opinion (previously summarized at http://volo.abi.org/ulrich-v-schian-walker-plc-in-re-boates), it reversed and remanded. In an order entered on 7/8/16, the BAP denied the lawyer’s motion for rehearing.
- Facts:
- Even if the agreement is not executory, the debtor’s rights under the agreement included the right to terminate the lawyer and receive a refund of the prepaid fee based on the value of the services provided before termination, and those rights became estate property upon the filing of the petition, exercisable by the trustee.
- Judge(s):
- Christopher D. Jaime, Bankruptcy Judge for the Eastern District of California, sitting by designation, and Meredith A. Jury and Frank L. Kurtz, Bankruptcy Appellate Panel Judges.
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