LTF Real Estate Company, Inc. v. Expert South Tulsa, LLC v. First American Title Insurance Co. (In re Expert South Tulsa, LLC)
- Summarized by Steven Mulligan , Coan, Payton & Payne, LLC
- 9 years 2 months ago
- Citation:
- LTF Real Estate Co. Inc. v. Expert South Tulsa, LLC v. First American Title Insurance Co. (In re Expert South Tulsa, LLC), Case No. CO-15-3000 (10th Cir. October 19, 2015). Unpublished.
- Tag(s):
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- Ruling:
- Under Oklahoma law, all legal and equitable interests in escrowed funds do not unqualifiedly transfer to a bankruptcy estate.
- Procedural context:
- Debtor appealed BAP’s decision affirming the bankruptcy court’s holding that money placed in escrow by debtor prepetition did not become property of the bankruptcy estate. The 10th Circuit affirmed and, taking “care to emphasize what we haven’t said and don’t mean to say,” stressed that its decision was limited to the facts of and issue raised in the appeal. The 10th applied both federal and Oklahoma law.
- Facts:
- Prepetition, debtor agreed to make improvements to land plaintiff purchased from debtor and agreed to place the funds necessary to complete the improvements into escrow with a third party which funds debtor could recover as work was completed. Prior to doing any work, debtor filed bankruptcy and plaintiff filed an action seeking a declaration that the escrowed funds were not property of the estate.
- Judge(s):
- Lucero, Hartz, Gorsuch
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