Date of Decision:
February 18, 2009
Whether Debtor's contractual right to a share of certain real estate sales commissions, which was contingent on successful closings that did not take place until after the filing of Debtors' petition, was property of the estate?
Yes. Property of the estate includes contingent interests such as Debtor's contractual right to a share of the real estate sales commissions.
The U.S. District Court, the Hon. Richard H. Battey, affirmed stating the trustee’s motion for turnover plainly shows that Debtors had other property, in addition to the real estate commissions, in excess of their allowed exemptions. The property identified by the trustee as non-exempt was itemized with descriptions and values. The amount the bankruptcy court ordered to be turned over to the trustee was precisely the amount identified as non-exempt property in the trustee’s motion for turnover.
Full Bankruptcy Appellate Panel/District Court Appeal Opinion: