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Home New Cases Trustee Collins Seeks Recovery for Alleged Excessive Charges By Tennessee Debtor

Trustee Collins Seeks Recovery for Alleged Excessive Charges By Tennessee Debtor

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May 18, 2022, Bankruptcy Court for Western District of Tennessee – Michael E. Collins, in his capacity as chapter 11 trustee (the “Trustee”) of the bankruptcy estate of William H. Thomas, Jr. (the “Debtor”), seeks declaratory relief and recovery of money and damages against Ley-Aik Tan and Dee-Leng Choo (collectively “Defendants”). 

The Trustee claims existence of a joint venture among the Debtor and the Defendants concerning a condominium. The Debtor arguably paid more than his allocable share of the expenses and advances for the joint venture and transferred his interest in the condominium to the Defendants. The Trustee argues that the Debtor’s Bankruptcy Estate has not been reimbursed for the “excess expenses and advances” made by the Debtor nor has the Debtor received any consideration for transfer of its interest in the real property.

Alternatively, the Trustee maintains the allegations of unjust enrichment and demands payment from the Defendants against the “presumed loan”. Trustee Collins deems the above stated transfers and advances as “oral loans” to the Defendants.

The Trustee makes the request for a declaratory judgment that the Defendants hold the condominium in constructive trust for the benefit of the bankruptcy estate of the Debtor. The Trustee also seeks a money judgment against the Defendants in the amount of 50% of the value of the condominium and the proportion of amount by which the Debtor’s advances exceed the Defendant’s advances for purchase of condominium. 

Michael E. Collins, Chapter 11 Trustee v. Ley-Aik Tan AND Dee-Leng Choo (In re William H. Thomas, Jr.), AP No. 22-057, US Bankruptcy Court Western District of Tennessee 

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