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Opinion 227

Case Name: 

Mann v. Duncan (In re Mann)

Judge: 
U.S. District Court, Utah
Date: 
May-26-1987
Case Number(s): 
84A-1011
Status: 

APPEAL
Unpublished

Body: 

When debtors' bankruptcy case was converted from chapter 11 to chapter 7, and a trustee was appointed, debtors' adversary proceeding alleging legal malpractice against their former lawyer was pending. Trustee thereafter negotiated a settlement of debtors' claims with the defendant and sought the court's approval of the settlement agreement under Bankruptcy Rule 9019(a). Debtors objected to the settlement and, at the hearing on the motion, offered $300 more than the agreed settlement amount to have the settlement abandoned or the claim against defendant sold to them by the trustee. The bankruptcy court approved trustee's settlement, and debtors appealed, claiming abuse of discretion based on their offer of more than the approved settlement amount. The district court considered the reasons given by the trustee for the settlement and the bankruptcy court's findings in its approval order, and found no clear abuse of discretion. The district court noted that to hold otherwise on the record before it would potentially turn every Rule 9019(a) motion into a bidding contest, in which, the sole determining factor would be the amount offered.

Internal Ref: 
Opinion 227
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