Underhill v. Huntington National Bank (In re Underhill)

(6th Cir. Sep. 10, 2014)

The Sixth Circuit reverses the B.A.P.’s and the bankruptcy court’s decisions finding the debtor’s tortious interference claim against a competitor was property of the estate. The competitor’s improper acts that led to the supplier breaching its contract with the debtor began before the debtor’s bankruptcy petition was filed. However, the supplier did not breach the contract with the debtor until after the petition date. Because the actual injury to the debtor did not occur prepetition (i.e., the tortious interference claim was not established until the contract was breached), the cause of action was not property of the estate. Judge Donald dissents. Opinion below.

2014-09-10 – in re underhill