Opinion ID: 2973639
Heading Depth: 2
Heading Rank: 1

Heading: Allocation of the two farms

Text: The bankruptcy and divorce proceedings that give rise to this appeal have spanned a decade, far longer than the marriage between Kasben and Hoffman. These proceedings are fully detailed in several state and federal court opinions. See In re Hoffman, No. 04-CV-75075, slip op. at 1-5 (E.D. Mich. May 11, 2005); Kasben v. Hoffman, Nos. 247297, 253201, 254295, 2005 WL 678158 (Mich. Ct. App. Mar. 24, 2005); In re Hoffman, No. 03-CV-71279, slip op. at 1-7 (E.D. Mich. Aug. 25, 2003). Appellant Edwin Kasben (Edwin) is Kasben’s father and Hoffman’s former father-in- -2- No. 05-1701 Kasben v. Dery law. The Kasbens both argue that Edwin is the rightful owner of one of the farms at issue in this case. In November of 1997, Hoffman filed a voluntary petition for bankruptcy under Chapter 7. Divorce proceedings were pending at that time, and a contentious dispute ensued regarding the fate of two pieces of property, one known as the Marital Farm and the other as the Boone Farm. The trustee of Hoffman’s bankruptcy estate was initially awarded both pieces of property in a judgment of divorce. Kasben appealed that judgment to the Michigan Court of Appeals. While the appeal was pending, the bankruptcy court authorized Hoffman’s trustee to sell the Marital Farm. The Kasbens, both believing that Edwin was the rightful owner of the property, posted a bond to stay the sale. When Kasben lost the appeal of the sale-authorization order in a previous appeal to this court, the bankruptcy court allowed the trustee to proceed with finding a buyer for the Marital Farm. A settlement was reached in which the Kasbens bought the Marital Farm, subject to their state-court appeal of the divorce decree. The proceeds from that sale were paid to the trustee out of the Kasbens’ previously-posted bond. In addition, the parties agreed to sell Boone Farm to a third party. In November of 2001, the Michigan Court of Appeals reversed the state trial court and remanded the case for further proceedings regarding the allocation of the Marital and Boone Farms. The state trial court, on remand, voided its original judgment and awarded both farms to Kasben, subject to his obligation to pay Hoffman, and thus the bankruptcy estate, $288,000.