Michael Dombrowski v. Legacy Mountain Homeowners Association Inc
- Summarized by Taylor King , U.S. Bankruptcy Court, Middle District of Florida
- 11 months 3 weeks ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- 24-12541 (11th Circuit, Mar 10,2025) Not Published
- Tag(s):
-
- Ruling:
- Legacy HOA was not a creditor of individual debtor Dombrowski, therefore Legacy did not violate the automatic stay and was not bound by the debtor's confirmed chapter 11 plan. The Eleventh Circuit looked to the law of the states of incorporation to determine the impact of administrative dissolution. The court found that the real property remained property of the administratively dissolved entities and Dombrowski owned the shares/member interests as his personal property. Legacy HOA held a secured claim against the real property and was a creditor of the holding companies, not Dombrowski.
- Procedural context:
- Dombrowski filed an adversary proceeding against Legacy HOA for violation of the automatic stay and to compel compliance with his confirmed Chapter 11 plan. The bankruptcy court granted Legacy's motion to dismiss. Dombroski appealed. The district court affirmed. The Eleventh Circuit affirmed.
- Facts:
- Dombroski owned two business entities, one incorporated in Tennessee and another incorporated in Georgia. Each entity owned real property located in a community overseen by Legacy HOA. In his Chapter 11 filings, Dombrowski noted that the relevant real estate was owned by these entities and not him individually. Dombrowski listed Legacy HOA as a creditor and Legacy HOA received notice of the bankruptcy case but took no action in the Chapter 11 case. In his confirmed Chapter 11 plan, Dombrowski included a mechanism that he could elect to transfer the real estate from his business entities/holding companies to him individually. However, Dombrowski never elected to proceed with this transfer. The entities were administratively dissolved pre-petition.
- Judge(s):
- Pryor, Brasher, Anderson
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