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Prochnow v. Apex Properties, Inc.
United States District Court for the Central District of Illinois
467 B.R. 656 (2012)
Jeffrey Prochnow (plaintiff) was a realtor for Apex Properties, Inc., which was doing business as Remax Choice of Bloomington, Illinois, (Remax) (defendant), a real-estate broker. Prochnow entered into a Broker-Realtor-Associate Contract (Contract) with Remax in 2006, allowing for Prochnow to be paid on a commission basis. The commission was not to be paid to Prochnow until after the closing of the property was completed and after Remax received a commission. Prochnow filed for Chapter 7 bankruptcy in August 2009, but continued working under the Contract with Remax until January 2010. Prochnow’s bankruptcy case closed in February 2010. Prochnow filed a motion to reopen his case in June 2010 in order to obtain his commissions on property closings that occurred after he filed for bankruptcy. The bankruptcy court ruled in favor of Remax, stating that the contracted commission was part of Prochnow’s bankruptcy estate because the commission was earned prior to the bankruptcy petition. The bankruptcy court also stated that Prochnow was judicially estopped from recovering the commission because Prochnow had not disclosed the commission as part of his estate on his schedules. Prochnow appealed the bankruptcy court’s decision.
Rule of Law
Holding and Reasoning (Myerscough, J.)
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