Ulrich v. Schian Walker, P.L.C. (In re Boates)

Summarized by James Webster , Law Office of James Portman Webster, PLLC
9 years 8 months ago

Citation:

-- F.3d -- (6/26/16)

Tag(s):

Ruling:

The Ninth Circuit BAP characterized the pre-petition legal agreement as an executory agreement, and as such, the case had to be remanded to determine the date the executory agreement was terminated. REVERSED and REMANDED.

Procedural context:

Chapter 7 Trustee sought the turnover of a $60,000 pre-petition payment to Debtor's attorney for the purpose of defending Debtor in an Adversary Proceeding that was believed to be filed in the bankruptcy. Chapter 7 Trustee filed an Adversary Proceeding seeking the return of the funds as the agreement was an executory contract. Chapter 7 Trustee filed a Motion for Summary Judgment and the Debtor filed a Cross-Motion for Summary Judgment. The Bankruptcy Court found for the Debtor. Chapter 7 Trustee Appealed.

Facts:

Prior to filing, Debtor became convinced there was going to be an Adversary Proceeding against Debtor. In anticipation, Debtor paid his attorney $60,000 flat fee to defend Debtor in the bankruptcy case. Four days after the bankruptcy was filed, an Adversary Proceeding was opened against Debtor. Chapter 7 Trustee sought to have the $60,000 retainer returned to the estate.

Judge(s):

KURTZ, JAIME and JURY, Bankruptcy Judges

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