In re: Hilburn's v.

Bankruptcy Appellate Panel of the Sixth Circuit·Decided October 2, 2000·No. 00-8018·Published

Opinion

(/(&7521,&&,7$7,21)('$SS3 WK&LU

)LOH1DPHES

%$1.5837&<$33(//$7(3$1(/2)7+(6,;7+&,5&8,7

,QUH (**/(6721:25.6/28'63($.(5&2

'HEWRU

BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 81,7('67$7(675867(( 

$SSHOODQW

Y

1R

(**/(6721:25.6/28'63($.(5&2 

$SSHOOHH

 BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB  ,QUH+,/%851j63$,17$1'%2'<6+23,1&

'HEWRU

BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 81,7('67$7(675867((

$SSHOODQW

Y 1R +,/%851j63$,17$1'%2'<6+23,1&

$SSHOOHH

BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB $SSHDOIURPWKH8QLWHG6WDWHV%DQNUXSWF\&RXUW IRUWKH:HVWHUQ'LVWULFWRI7HQQHVVHH:HVWHUQ'LYLVLRQDW0HPSKLV 1RV

$UJXHG 

DQG6XEPLWWHG  sXO\

'HFLGHGDQG)LOHG2FWREHU

%HIRUH$8*025*(167(51&/$55(1DQG5+2'(6 %DQNUXSWF\$SSHOODWH3DQHOsXGJHV

BBBBBBBBBBBBBBBBBBBB

&2816(/

$5*8('6HDQ0+D\QHV2)),&(2)7+(8675867((0HPSKLV7HQQHVVHHIRU $SSHOODQW1RUPDQ3+DJHPH\HU0HPSKLV7HQQHVVHHIRU6HOI21%5,()6HDQ0 +D\QHV2)),&(2)7+(8675867((0HPSKLV7HQQHVVHHIRU$SSHOODQW1RUPDQ 3+DJHPH\HU0HPSKLV7HQQHVVHHIRU6HOI $8*%sGHOLYHUHGWKHRSLQLRQRIWKHFRXUWLQZKLFK 5+2'(6%sMRLQHG 025*(167(51&/$55(1%s S GHOLYHUHGDVHSDUDWHGLVVHQWLQJRSLQLRQ

BBBBBBBBBBBBBBBBBBBB

23,1,21

BBBBBBBBBBBBBBBBBBBB

s 9,1&(17 $8* s5 %DQNUXSWF\ $SSHOODWH 3DQHO sXGJH  ,Q WKHVH WZR FRQVROLGDWHGDSSHDOVWKHEDQNUXSWF\FRXUWDOORZHGFRPSHQVDWLRQWRWKHFKDSWHUGHEWRUVj DWWRUQH\VIURPHDFKEDQNUXSWF\HVWDWH:H$)),50

, ,668( 21 $33($/

7KH LVVXH LQ WKLV FDVH LV SXUHO\ D PDWWHU RI VWDWXWRU\ LQWHUSUHWDWLRQ :KHWKHU D FKDSWHUGHEWRUjVDWWRUQH\FDQEHDZDUGHGIHHVIURPWKHHVWDWHXQGHU86&†

,,s85,6',&7,21$1'67$1'$5'2)5(9,(:

7KHEDQNUXSWF\FRXUW VRUGHULQWKH(JJOHVWRQFDVHLVDQDZDUGRILQWHULPDWWRUQH\ IHHV$VVXFKLWLVDQLQWHUORFXWRU\RUGHU6HH5RGHULFNY/HY\ ,QUH5RGHULFN7LPEHU &R %5 %$3WK&LU 6HHDOVR7KH*HRUJH:RUWKLQJWRQ&R )G WK&LU  ,QWHUORFXWRU\DSSHDOVFDQRQO\EHKHDUGZLWKOHDYHRIWKH3DQHO86&† E  ,QUH5RGHULFN7LPEHU&R%5DW,IDQRUGHULVLQWHUORFXWRU\DQGQRPRWLRQIRU OHDYHWRDSSHDOKDVEHHQILOHGWKHSDQHOPD\FRQVLGHUDWLPHO\QRWLFHRIDSSHDOWREHD

 ,W LV QRW FOHDU ZKHWKHU WKH IHH DSSOLFDWLRQ LQ WKH +LOEXUQ FDVH LV DQ LQWHULP RU ILQDO IHH DSSOLFDWLRQ



PRWLRQIRUOHDYH)HG5%DQNU3 F ,QUH5RGHULFN7LPEHU&R%5DW *UDQWLQJOHDYHWRDSSHDOLVDWWKHGLVFUHWLRQRIWKHSDQHO,QUH5RGHULFN7LPEHU&R %5DW7KHVWDQGDUGVVHWIRUWKLQ86&†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

LQWHUSUHWLQJ  86& †  D   'H QRYR PHDQV WKDW WKH DSSHOODWH FRXUW GHWHUPLQHVWKHODZLQGHSHQGHQWO\RIWKHWULDOFRXUWjVGHWHUPLQDWLRQ)LUVW8QLRQ0RUWJDJH &RUS Y (XEDQNV ,Q UH (XEDQNV   %5   %$3 WK &LU   FLWDWLRQ RPLWWHG 

,,,)$&76

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jDWWRUQH\VZHUHQHFHVVDU\WR WKHDGPLQLVWUDWLRQRIWKHWZRHVWDWHVDQGDZDUGHGWKHIHHV7LPHO\DSSHDOVIROORZHG



,9',6&866,21

3ULRUWR86&†H[SUHVVO\FRQWHPSODWHGDQDZDUGRIFRPSHQVDWLRQ WRWKHGHEWRU VDWWRUQH\,Q86&† D ZDVVXEVWDQWLDOO\DPHQGHGDGGLQJ DPRQJ RWKHU WKLQJV PRUH GHWDLOHG JXLGDQFH DERXW KRZ D FRXUW VKRXOG GHWHUPLQH WKH UHDVRQDEOHQHVVRIWKHFRPSHQVDWLRQIRUSURIHVVLRQDOV8QLWHG6WDWHV7UXVWHHY*DUYH\ 6FKXEHUW %DUHU ,QUH&HQWXU\&OHDQLQJ 6HUYV,QF )G WK&LU    7KH DPHQGPHQW DOVR GHOHWHG WKH ODVW VHYHUDO ZRUGV RU WKH GHEWRU V DWWRUQH\ RULJLQDOO\FRQWDLQHGDWWKHHQGRIROG SUH †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†  D  FRQWDLQV WZR SDWHQW GUDIWLQJ HUURUV  )LUVW LQ †  D   WKH OLVW RI SHUVRQV ZKR PD\ EH FRPSHQVDWHG LV PLVVLQJ D FRQMXQFWLRQ  6HFRQG †  D  $

H[SUHVVO\LQFOXGHVDWWRUQH\ZKLOH† D  GRHVQRW6LQFHVXEVHFWLRQ D  $ LV QHFHVVDULO\DSDUWRIVXEVHFWLRQ D  WKLVUHQGHUV† D LQKHUHQWO\LQFRQVLVWHQW,Q RWKHUZRUGVWKHZRUGmDWWRUQH\lVKRXOGDSSHDULQERWK† D  DQG† D  $ RU LQQHLWKHU7KHVHWZRGUDIWLQJHUURUVUHQGHUWKHVWDWXWHDPELJXRXV,GDW6HHDOVR ,QUH&HQWXU\&OHDQLQJ6HUYV,QF)GDW7KXVZLWKUHJDUGWR WKH LVVXH EHIRUH WKH SDQHO WKH VWDWXWH GRHV QRW KDYH D SODLQ PHDQLQJ  ,Q WKHVH FLUFXPVWDQFHVLWEHFRPHVRXUUHVSRQVLELOLW\WRGHWHUPLQHZKHWKHU&RQJUHVVLQWHQGHGE\ WKHDPHQGPHQWVWRSURKLELWFRPSHQVDWLRQWRFKDSWHUGHEWRUVjDWWRUQH\V)RUWKH IROORZLQJUHDVRQVWKH3DQHOFRQFOXGHVWKDW&RQJUHVVGLGQRWKDYHVXFKDQLQWHQW )LUVWSULRUWRLWZDVWKHSUDFWLFHWRDOORZFRPSHQVDWLRQRIDGHEWRU VDWWRUQH\ IURPWKHHVWDWH6XUSULVLQJO\WKHUHLVQRH[SHFWHGOHJLVODWLYHKLVWRU\GLVFXVVLQJVXFKD VLJQLILFDQWDOWHUDWLRQRIDQH[LVWLQJVWDWXWRU\VFKHPH,QUH&HQWXU\&OHDQLQJ6HUYV,QF )G FLWLQJ'HZVQXSY7LPP866&W  



Free access — add to your briefcase to read the full text and ask questions with AI

In re: Hilburn's v., (bap6 2000).

In re: Hilburn's v. (In re: Hilburn's v.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.