UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF KENTUCKY
MICHEAL B. MINIX CASE NO. 90-00315
This matter is before the Court upon an Objection to Notice of Abandonment filed herein by Donald Amerson objecting to a Notice of Clarification of Abandonment filed by the Successor Trustee, Lucinda Masterton Hall.
The debtor filed his voluntary proceeding under Chapter 7 of the Bankruptcy Code on June 18, 1990. Susan Mullins Johnson was appointed trustee. An agreement was reached between the debtor, trustee and First National Bank of Paintsville ("First National") to terminate the stay with respect to certain real property of the debtor on which First National had a mortgage. An Agreed Order Terminating Stay was signed by those parties and entered by this Court on August 20, 1990. The operative portion of that order contained the following paragraph:
1. That the stay afforded by 11 U.S.C.
The file contains correspondence between the trustee and counsel for First National which suggests that the trustee and First National understood that the trustee reserved certain rights regarding the collection of sums claimed due to the estate from rentals due from the property which was the subject of the agreed order. Amerson, the objector herein, was a tenant of part of the property which was the subject of the agreed order.
The original trustee, Susan Mullins Johnson, was appointed to a state court judicial position and was replaced by Lucinda Masterton Hall, who presently serves as successor trustee.
Subsequently a state court action was brought and the property foreclosed upon and First National bid the property in at the foreclosure sale and became the owner of the property leased to Amerson. An action was brought against Amerson by the successor trustee and First National to recover rents claimed due. At least a portion of those rents represent rents accruing postpetition.
Amerson apparently questioned the trustee's authority to bring an action to collect postpetition rents in light of the abandonment language in the agreed order of August 20, 1990 and the trustee then filed her Notice of Clarification of Abandonment which asserts that the trustee did not intend to abandon any accrued postpetition rents accruing prior to the date of the agreed order of August 20, 1990 and attaching thereto the above referenced correspondence suggesting the trustee's arrangement with First National mentioned above. Amerson objected to the trustee's Notice of Clarification of Abandonment and a hearing was held on the matter at which the Court heard arguments of counsel on the matter.
The trustee asserts that the abandonment language did not abandon any postpetition rent claims that the estate had against Amerson and that, in any event, Amerson is without standing to object to the clarification sought since he is not a creditor or otherwise involved in this proceeding. Amerson responds that the abandonment language in the agreed order is a final determination that the estate has no interest in the property he leased from the debtor.
The Court agrees with the trustee's contention that the objector, Dr. Amerson is without standing in this proceeding to object to the trustee's notice regarding the scope of abandonment of property. The objector is a party who may owe the estate money and it would be strange indeed if he were allowed to avoid the assertion of claims against him in state court by objecting in this proceeding. Dr. Amerson would not have been entitled to notice of any abandonment of the rent claims in this proceeding had any such notice been given.
A separate order will be entered overruling the objection.
Dated this ______ day of November, 1992.
By the Court-
Attorney for Debtor
Anna Melvin, Esq.
Joseph Rosenbaum, Esq.
United States Trustee