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Opinion 346

Case Name: 

Cottage Farms, Ltd. v. Sloan (In re Larsen)

Judge: 
U.S. District Court, Utah
Date: 
Jan-29-1992
Case Number(s): 
90PC-0720
Status: 

UNPUBLISHED (District Court)

Body: 

Debtor previously held a percentage interest in a limited partnership that owned real property, which it sold on an installment basis. Debtor transferred all of his interest in the partnership to a third party, who subsequently transferred half of that interest to debtor's wife. When the first installment payment was made on the sale of the property, the limited partnership received conflicting claims to the amount that would have been paid on debtor's previous percentage interest. The trustee in debtor's bankruptcy claimed that debtor's transfer of his interest in the partnership had been fraudulent, under 11 U.S.C. § 548(a)(2)(A), and demanded that the partnership pay the full value attributable to debtor's prior interest to the estate, while the third party and debtor's wife each claimed a one-half interest in that share. The limited partnership filed an interpleader action in the bankruptcy court and deposited the full percentage payment with the bankruptcy court clerk. The third party filed a motion in district court to withdraw the reference to the bankruptcy court, claiming she was entitled to a jury trial on the interpleader issues. That motion was supported by debtor's wife and opposed by the trustee. Holding that interpleader is an equitable remedy that does not give rise to a right to a jury trial, the district court denied the motion to withdraw the reference.

Internal Ref: 
Opinion 346
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