Gloria Jennifer Ezechukwu
ORDER
Before the Court is the Motion for Return of Personal Property or Compensation for Unauthorized Removal (Doc. 87, the “Motion“), filed by Prince Mathias (“Movant“). The Motion is opposed by Neil C. Gordon in his capacity as the Chapter 7 trustee (the “Trustee“) of the bankruptcy estate of Gloria Ezechukwu (“Debtor“). See Docs. 89, 92, & 129 (the “Response“). This dispute constitutes a core proceeding, over which this Court has subject matter jurisdiction. See
Procedural History
Debtor filed a voluntary petition under Chapter 7 of the Bankruptcy Code1 (the “Code“) on December 12, 2023. The Trustee was appointed as Chapter 7 trustee. On January 17, 2024, the Trustee filed a report of assets and requested a claims bar date be set. (Doc. 11). On April 15, 2024, the Trustee filed a Motion for an Order (A) Compelling Debtor to (I) Perform Her Statutory Duties and (II) Turn Over Property of the Estate and (B) Prohibiting Debtor from Removing Fixtures or Property of the Estate. (Doc. 26, the “Motion to Compel“). In the Motion to Compel, the Trustee requested entry of an order directing Debtor to
On July 10, 2024, the Trustee filed his Notice of Default, Request for Show-Cause Hearing, and Renewed Motion for Turnover of the Property. (Doc. 40, the “Show Cause Motion“). In the Show Cause Motion, the Trustee alleged that Debtor had failed to comply with the First Consent Order by being “very resistant” to all showings of the Property. Specifically, Debtor followed the agent and potential buyers from room to room telling them that her lawyer said there is no
On October 17, 2024, the Trustee filed his Motion for an Order Authorizing (I) the Sale of Property of the Bankruptcy Estate Free and Clear of All Liens, Interests, and Encumbrances and (II) Disbursement of Certain Proceeds at Closing. (Doc. 48, the “Motion to Sell“). The Motion to Sell sought Court approval to sell the Property to Devarious and Shanice Butler (the “Buyers“), to pay the valid liens on the Property, and to pay a portion of the expected surplus to Debtor. The contract attached to the Motion to Sell indicated the sale would close on November 15, 2024, or within ten days of the date upon which the Court
The Court held a hearing on the Motion to Sell and the Emergency Motion on November 14, 2024. Debtor did not file a written response but appeared at the hearing pro se, her counsel having moved to withdraw from the case with Debtor‘s consent on October 31, 2024. Movant did not appear at the hearing. The Court heard argument regarding the matters. Debtor did not raise any substantive objections to the sale itself or put forth any alternative solution that would allow for payment of creditors without the sale of the Property. Accordingly, given that the case was nearly a year old and Debtor had known about the possibility of a sale of the Property for several months, the Court was constrained to overrule Debtor‘s objection and approve the sale and did so by
On April 8, 2025, Movant filed the Motion, in which he alleges that: (1) Movant is the adult son of Debtor; (2) Movant owned personal property that was stored at the Property in a room separate from Debtor‘s property, such that there was no reason for the Trustee to conclude that the personal property was property of Debtor‘s bankruptcy estate; (3) the Trustee sold the Property on December 4,
In Response, the Trustee asserts that, in order for the final walk-through to occur, the closing of the sale of the Property to take place, and for Trustee to be able to deliver the premises to the Buyers, all personal property had to be removed from the Property and delivered to a storage unit.3 The Trustee also argues that:
Conclusions of Law
The filing of a bankruptcy petition creates a bankruptcy estate that consists of all property of the debtor.
These statutory duties “serve as the basis for fiduciary duties.” In re Kenneth C. Casey, Inc., 2022 WL 2198882, at *13–14 (Bankr. D. Colo. June 17, 2022); see also In re Spence, 497 B.R. 99, 108 (Bankr. D. Colo. 2013) (“Stemming
Having considered the Motion and the Response, the Court concludes that, assuming Movant‘s allegations are true for the sake of argument, the Trustee is protected from liability by either absolute or qualified immunity. See In re J & S Props., LLC, 545 B.R. 91, 100 (Bankr. W.D. Pa. 2015), aff‘d sub nom. Phoenician Mediterranean Villa, LLC v. Swope, 554 B.R. 747 (W.D. Pa. 2016), aff‘d sub nom. In Re: J & S Props., LLC, 872 F.3d 138 (3d Cir. 2017) (noting that a trustee who acts in accordance with a court order is entitled to absolute derived judicial immunity and a trustee who acts while performing his statutory duties is entitled to qualified judicial immunity). Movant‘s complaint is with regard to the Trustee‘s decision to
Conclusion
For the reasons stated above,
IT IS ORDERED that the Motion is DENIED.
END OF DOCUMENT
Distribution List
Neil C Gordon
Gordon & Pettie LLC
P. O. Box 671441
Marietta, GA 30006-0025
John K. Rezac
Ardis Law LLP
2300 Windy Ridge Pkwy.
Ste 1165N
Atlanta, GA 30339
Gloria Jennifer Ezechukwu
2418 Brookgate Way
Ellenwood, GA 30294
Alan Hinderleider
Office of the United States Trustee
362 Richard B Russell Federal Building
75 Ted Turner Drive, SW
Atlanta, GA 30303
Prince I. Mathias
2418 Brookgate Way
Ellenwood, GA 30294