In Re Castro

MEMORANDUM OPINION

INTRODUCTION

James Joseph, Chapter 7 trustee (“Trustee”), brought this proceeding against John Hewitt, an individual, and Hewitt Industries of Los Angeles, Inc. (collectively “Hewitt”) to quiet title to real property located in Montevideo, Uruguay (the “Property”). After hearing cross-motions for summary judgment, I granted judgment for Hewitt. I found that Hewitt had paid the entire purchase price, all maintenance costs, and taxes on the Property and was the equitable owner of the Property. Further, I found that such ownership was not defeated by Trustee’s avoidance powers under § 544(a)(3) of the Bankruptcy Code (the “Code”) since Trustee had constructive notice of the equitable claim from Debtors’ schedules. On Trustee’s motion for reconsideration, I took under submission the question of whether Trustee had constructive notice of an equitable claim based upon information contained in late filed schedules.

JURISDICTION

This Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1334 (a) (the district courts shall have original and exclusive jurisdiction of all cases under Title 11), 28 U.S.C. § 157 (a) (authorizing the district courts to refer all…