IN RE COHEN

BAP No. OR-03-1306-KMuB, Bankruptcy No. 02-35671-tmb13, Adversary No. 02-03586-tmb.

305 B.R. 886 (2004)

In re Lewis Irving COHEN and Peggy Lynn Chesnut-Cohen, Debtors. Christine Houston and Helen Getsey, Appellants, v. Kenneth S. Eiler, Chapter 7 Trustee; IRA Freydkis; Bank of Astoria; Lewis Irving Cohen; Peggy Lynn Chesnut-Cohen; Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Filed February 24, 2004.


Attorney(s) appearing for the Case

Tara J. Schleicher, Farleigh, Wada & Witt, Portland, OR, for Christine Houston and Helen Getsey.

Robert Vanden Bos, Vanden Bos & Chapman, Portland, OR, for Lewis I. Cohen and Peggy Chesnut-Cohen.

Before KLEIN, MUND, and BRANDT, Bankruptcy Judges.


OPINION

KLEIN, Bankruptcy Judge.

The substantive question is whether appellants' contractual right to receive funds from the settlement of a tort action can evade the trustee's "strong-arm" avoiding power either as an automatically-perfected "payment intangible" under Revised Article 9 of the Uniform Commercial Code ("UCC"), or as an enforceable equitable assignment not subject to UCC Article 9.

The jurisdictional question is whether chapter 13 debtors...

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