06/21/2005
Chapter 7 Trustee Lacks Standing to Pursue Malpractice Claims Against Attorneys that Belonged to the Creditors of the Bankrupt Entities and Not the Bankrupt Entities Themselves
In re Senior Cottages of America, LLC
320 B.R. 895 (Bankr. D. Minn. 2005)
320 B.R. 895 (Bankr. D. Minn. 2005)
Brief Summary
The "ownership" of legal malpractice and related claims pertaining to a bankrupt entity and the ability or inability of a trustee in bankruptcy to pursue such claims notwithstanding defenses that the attorney defendants might have had against third party creditor-plaintiffs, can truly be a life or death matter for law firm and attorney defendants. This case notes the importance of avoiding an overbroad interpretation of plaintiff's' rights in such circumstances.
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