Town Center Flats, LLC v. ECP Commercial II LLC (In re Town Center Flats, LLC)

(6th Cir. Mar. 7, 2018)

The Sixth Circuit affirms the bankruptcy court’s decision finding that the debtor had redeemed real property following a pre-petition foreclosure action. If the debtor could establish that it had not redeemed the property then its affiliate may have title to the property and the bank’s mortgage would no longer encumber the property. However, because Michigan law permits parties to extend the redemption period and the evidence supported a finding that the parties agreed to an extension and negotiated the redemption payment, the mortgage is still effective. Opinion below.

Judge: Cole

Attorney for Appellant: Robert N. Bassel

Attorney for Appellee: ECP Commerical II LLC

2018-03-07 – in re town center flats

Author: Matt Lindblom

Town Center Flats, LLC v. ECP Commercial II LLC (In re Town Center Flats, LLC)

(6th Cir. May 2, 2017)

The Sixth Circuit reverses the bankruptcy court, finding that the assignment of rents acted as a complete transfer of ownership and the assignor did not retain any interest in the rents. The court analyzes Michigan law on such assignments and concludes that because the debtor/assignor had no rights in the rents assigned, they were not property of the bankruptcy estate. Opinion below.

Judge: Stranch

Attorney for Appellant: Robert N. Bassel

Attorney for Appellee: Jeremy S. Friedberg

2017-05-02 – in re town center flats

Author: Matt Lindblom

Holley v. Corcoran (In re Holley)

(6th Cir. Oct. 25, 2016)

The Sixth Circuit reverses the bankruptcy court’s order permitting the Chapter 7 trustee to be paid her administrative fee from proceeds of the sale of the debtors’ Michigan real property. The debtors claimed the Michigan exemption for real property they owned. The trustee sold the property, paid creditors, and then obtained an order from the court permitting her administrative fee to be paid from the remaining proceeds. The bankruptcy court reasoned that the debtors used the full benefit of the exemption by the trustee accepting a lower purchase price from the debtors’ preferred purchaser. The Michigan statute provides that the exemption covers sale proceeds, and the bankruptcy court incorrectly applied the statute. Opinion below.

Judge: Cook

Attorney for Debtors: Melonee L. Monson-Holley

Attorney for Trustee: Beadle Smith, Thomas L. Beadle

2016-10-25-in-re-holley

Author: Matt Lindblom