Turnover Claim Defeated For Non Party Management Company In Construction Receivables Dispute

A Chapter 7 trustee for a construction company filed an adversary proceeding seeking turnover of $60,370.07 in alleged receivables under 11 U.S.C. §§ 541 and 542 from a property management firm and a homeowners association. The Trustee contended that both defendants were jointly liable for unpaid construction services rendered on a large structural repair project.

Representing the management company, our firm showed that it was never a contracting party and had no independent obligation to pay the debtor. The underlying construction agreement identified the homeowners association as the “Owner” and contracting counterparty, while the management company was referenced only in a “c/o” capacity and as an owner’s representative or point of contact—not as a signatory or obligor. The contract was executed solely by the association’s representative, and all change orders and invoices were issued to the association, further confirming that the management company acted only in an administrative role.

We supported our position with case law explaining that a “care of” designation does not, by itself, make an entity a party to a contract or liable for its obligations. Faced with this record and the absence of any contract or signature binding our client, the Trustee agreed to dismiss all claims against the management company, leaving any contract dispute to proceed solely between the estate and the homeowners association.

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