Segal v. Bennett (In re Meacham-Brown Ctr., Inc.)
UNPUBLISHED
Defendant moved to dismiss chapter 7 trustee's avoidance claim against it, asserting that debtor had not complied with a state statute requiring it to file an assumed name certificate, which would be an absolute defense to any claim asserted by debtor under state law. The court first discussed the real party in interest rule set forth in Fed. R. Civ. P. 17 (Bankr. R. 7017), noting that the rule is intended to ensure that plaintiff has an interest in the proceeding that is sufficient to cause its diligent advancement. In pursuing avoidance actions, a trustee acts on behalf of debtor's creditors, which is authorized by 11 U.S.C. § 323 and Bankruptcy Rule 6009. Thus, with respect to such claims, trustee, rather than debtor, is the real party in interest. Moreover, the court held that trustee's avoidance powers are not limited to the debtor's right to assert a claim, but also include the rights of creditors. Debtor's failure to file the assumed name certificate under state law was held to have no application to trustee's exercise of his avoidance powers.