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In re Johnson, Case No. 18-71446 (7/27/2020)

The Debtor filed an objection to a proof of claim filed by the Debtor’s business partner disputing that the Debtor was liable to the creditor for any amount for reimbursement of various sums, including capital contributions made in a joint venture arrangement, unpaid real estate taxes, attorney’s fees, improperly taken commissions, and other matters related to a real estate investment.   The claim arose out of a largely undocumented joint venture between the Debtor and the creditor, which soured over time.  The arrangement was that the creditor would provide most of the funds to purchase and renovate properties and the Debtor would provide her experience to rehabilitate and maintain the properties.  The objection to claim was sustained in part and overruled in part.  This is a fact specific opinion discussing the burden of proof on objections to claims and the Virginia Uniform Partnership Act.  Certain portions of the claim were allowed, and others will be paid upon the sale of the real estate or upon settlement of the partnership accounting and were thus disallowed in the Debtor’s bankruptcy case. 

Date: 
Monday, July 27, 2020
Category: 
Burden of Proof
Claim Objections
Proofs of Claim
Chapter: 
13