In re Dunn (Chapter 7, Case No. 09-31182, Adv. No. 09-03054)

Some of the prepetition sale proceeds from real estate jointly owned by the debtors and the defendants were placed in an escrow account. After the debtors filed for Chapter 7 relief, the parties disagreed as to the purpose of the escrow. The Court held that there was no meeting of the minds as to the purpose of the escrow, no valid and binding escrow was formed and that the debtors' interest in the escrowed funds were property of the estate.

Friday, September 10, 2010