Boynton v. American Modern Insurance Company
- Charles Breyer
- 3:18-cv-00374
- U.S. District Court · Northern District of California
- 3
Boynton v. American Modern Insurance Co.: Judge Breyer granted summary judgment because Boynton’s undisclosed lawsuit remained part of her bankruptcy estate.
The ruling affects Peggy G. Boynton’s lawsuit against American Modern Insurance Company and the bankruptcy estate, whose trustee the court identified as the real party in interest.
What happened
In Boynton v. American Modern Insurance Company, American Modern Insurance Company asked the court to grant summary judgment in a lawsuit Peggy G. Boynton had filed. Boynton had filed for bankruptcy in June 2020 but did not list this lawsuit as a claim against a third party.
The court said the lawsuit became part of Boynton’s bankruptcy estate when she filed for bankruptcy. The bankruptcy trustee had not formally abandoned the lawsuit, and Boynton’s omission meant the lawsuit was not automatically returned to her when the bankruptcy case closed. The court therefore concluded that the bankruptcy trustee, not Boynton, was the proper person to prosecute the lawsuit. The opinion also states that Boynton did not timely oppose the motion.
Judge Charles R. Breyer granted American Modern Insurance Company’s motion for summary judgment. The ruling was based on the bankruptcy estate and proper-party issues described in the opinion.
The detailed version
- Boynton v. American Modern Insurance Company · No. 3:18-cv-00374
- Charles Breyer
- Aug. 30, 2021
Background
Peggy G. Boynton sued American Modern Insurance Company in state court in 2017. American Modern removed the case to the U.S. District Court for the Northern District of California. After the court dismissed Boynton’s original complaint while allowing her to amend it, Boynton filed an amended complaint in April 2018. The court later appointed counsel for Boynton on two occasions for the limited purpose of settlement discussions, but the discussions failed and the court eventually relieved the appointed counsel.
American Modern then moved for summary judgment under Rule 56 of the Federal Rules of Civil Procedure. The opinion states that Boynton did not timely file an opposition. American Modern submitted documents showing that Boynton filed for bankruptcy in the Eastern District of California in June 2020. Neither her original nor amended bankruptcy petition listed claims against third parties. The bankruptcy trustee issued a final report on December 30, 2020, and the bankruptcy court adopted that report on February 2, 2021.
Court’s Analysis
Summary judgment is proper when there is no genuine dispute about a material fact and the moving party is entitled to judgment as a matter of law. The court held that Boynton’s lawsuit became part of the bankruptcy estate when she filed her bankruptcy petition. Under 11 U.S.C. § 541(a)(1), the estate includes the debtor’s legal and equitable interests in property, including causes of action.
The court considered whether the trustee had abandoned the lawsuit. It found no indication that the trustee had provided notice or held a hearing to abandon it. The court also concluded that the lawsuit was not automatically abandoned to Boynton when the bankruptcy case closed because she had not listed, or “scheduled,” the lawsuit in her bankruptcy petition. As a result, the lawsuit remained part of the bankruptcy estate.
Ruling
Under Rule 17(a)(1), a lawsuit must be prosecuted in the name of the real party in interest—the person or entity legally entitled to pursue it. The court determined that the bankruptcy trustee, rather than Boynton, was the real party in interest. The court therefore granted American Modern Insurance Company’s motion for summary judgment. The order does not state that the motion was granted with or without prejudice.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.