Hughes v. Tower Park Props.

Plaintiff appealed the bankruptcy court's order approving a settlement agreement in the Chapter 11 bankruptcy of debtor. At issue was whether a beneficiary of a trust who disagrees with the way the trust was administered by former trustees is a “party in interest” with standing to object to the bankruptcy court’s approval of a settlement agreement between a debtor, creditor entities held by the trust, and the former trustees. The court held that the trust beneficiary does not have party-in-interest standing under 8 U.S.C. 1109(a) to object to the settlement, at least where his interests are adequately represented by a party-in-interest trustee. Accordingly, the court affirmed the district court's dismissal for lack of standing. View "Hughes v. Tower Park Props." on Justia Law