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General Creations, LLC v. Callahan (In re General Creations, LLC) (Case No. 03-03058; A.P. No. 06-07095) 5/2/2008

The Court previously issued a decision and order granting the Plaintiffs constructive trusts in portions of settlement proceeds held by the Chapter 7 trustee.  The Chapter 7 trustee then filed a motion to amend findings pursuant to Federal Rule of Civil Procedure 52 or to alter or amend judgment pursuant to Rule 59(e), arguing that a valid constructive trust did not exist, and the Court, by setting an evidentiary hearing on the matter, essentially confirmed that the Plaintiffs failed to properly trace the funds and account for its commingling with other monies.  The Court denied the trustee's motion, finding that the Plaintiffs were able to clearly trace the funds, and have therefore satisfied their burden of identifying and tracing the res of the constructive trust.  The Chapter 7 trustee had the duty to determine the amount of the profits.

Date: 
Friday, May 2, 2008
Category: 
Chapter 11 Issues
Chapter: 
7