IN RE CLAYSON

Bankruptcy No. 03-14651 B, Adversary No. AP 03-1252 B.

341 B.R. 137 (2006)

In re Hiram E. CLAYSON, Debtor. John H. Heyer, Trustee, Plaintiff, v. Conesus Milk Producers Cooperative Association, Inc., Defendant.

United States Bankruptcy Court, W.D. New York.

March 24, 2006.


Attorney(s) appearing for the Case

John H. Heyer, Esq., Olean, NY, Trustee and Attorney for Trustee.

Michael J. Kelly Esq., Perry, NY, for Defendant.


DECISION & ORDER

CARL L. BUCKI, Bankruptcy Judge.

To avoid controversy for an improper distribution of funds, stakeholders will often issue checks made payable jointly to all potential claimants. But this shorthand solution may have other implications. In the present dispute, an auctioneer distributed the proceeds of sale by means of a check made payable jointly to the owner and to a party claiming to hold a security interest in the collateral...

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