Carroll v. RedPen Properties

After William Douglas Carroll and Carolyn K. Carroll filed for bankruptcy in 2008, RedPen Properties, whose membership consisted solely of the Carrolls, filed for bankruptcy in the same year. The trustee in both these bankruptcy cases sought relief against the Carrolls and their daughters based on their conduct in the bankruptcy case. The bankruptcy court granted the trustee's motion in part and detailed a series of notable actions taken by the Carrolls in bad faith, including seeking to frustrate the sale of property, filings related to movables adversary brought by the Carroll daughters, orders of contempt, attempts to frustrate the sale of the Carrolls' residence and movables, and two attempts to remove the trustee that were wholly unsupported by evidence. The court concluded that the record fully supported the bankruptcy court's determination of bad faith, and the Carrolls have not established that any of the bankruptcy court's findings were clearly erroneous. Therefore, the court affirmed the judgment as well as the attorney fee award. View "Carroll v. RedPen Properties" on Justia Law