In a dispute over the rights to money recovered in a South Dakota bankruptcy case, the court ruled that, although the funds were not property of the Nebraska debtor's bankruptcy estate, the Nebraska bankruptcy trustee was entitled to be compensated for his efforts to recover the money from the South Dakota debtor and litigate its ownership because his actions were reasonable. As between the trustee and the creditors to whom the recovered funds were ultimately awarded, the equities favor the trustee and the recovered funds may be surcharged for his fees and expenses.
Date:
Tuesday, May 21, 2013
Judge:
Judge Timothy J. Mahoney (Retired)