459 B.R. 526
Bankr. D. Mass.2011Background
- Gauthier filed Chapter 13 bankruptcy on September 19, 2010, listing an undisputed debt to Bank of America Inquiries of $32,661.15 on account ending 3186.
- FIA Card Services filed its claim No. 3 on October 25, 2010, asserting an unsecured claim of $35,254.93 and stating FIA was successor to Bank of America NA on accounts ending 3186 and 8527.
- A Notice of Transfer/Assignment indicated FIA transferred its claim to Portfolio Recovery Associates, LLC, prompting an amended objection to include Portfolio.
- At the June 28, 2011 hearing, neither FIA nor Portfolio appeared to respond to the amended objection.
- Debtor asserted under Massachusetts law that FIA failed to prove ownership of the Bank of America account, requiring disallowance of claim No. 3 under 11 U.S.C. § 502(b)(1).
- The court held that under Massachusetts law an assignee must prove ownership of the account to have an enforceable claim, and no evidence of assignment had been provided.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether ownership of the account was proven to support claim No. 3 | Gauthier contends the assignee failed to prove ownership. | FIA/Portfolio did not provide evidence of assignment; ownership not established by the record. | Ownership not proven; claim disallowed in full. |
Key Cases Cited
- In re Melillo, 392 B.R. 1 (1st Cir. BAP 2008) (assignee must prove ownership of the account; statute of frauds does not require writing)
- Ginther v. Commissioner of Ins., 427 Mass. 319 (Mass. 1998) (standing requires evidence of ownership to sue in state court)