In re CUA Autofinder, LLC (05-50480)
The chapter 7 debtor's sole shareholder used his personal funds to pay the debtor's obligation to deposit certain escrow funds with an escrow agent. The shareholder contended that he was equitably subrogated to the debtor's right to receive a return of the escrow funds because the shareholder had personally guaranteed the debtor's obligations. The Court held that the shareholder had not personally guaranteed the debtor's obligation to deposit the escrow funds and that the shareholder had waived any right to subrogation. The Court held that the debtor's bankruptcy estate was entitled to the funds held by the escrow agent.
File:
Date:
Tuesday, April 29, 2008