Green v. Zukerkorn (In Re Zukerkorn)

MEMORANDUM

Linda S. Green, the trustee of Herbert M. Zukerkorn and Jennifer K. Zukerkorn’s Chapter 7 bankruptcy estate, appeals from the decision of the bankruptcy court, which was affirmed by the Bankruptcy Appellate Panel, denying Green’s motions for turnover of income distributed to the Zuker-korns from the Herbert Zukerkorn Trust after the Zukerkorns filed for bankruptcy. The Trust is an inter vivos trust with a spendthrift provision and a choice-of-law clause stating that the Trust is governed by Hawaii law. On appeal, Green argues that the Trust should be governed by California law, that California law entitled the bankruptcy trustee to 25% of post-petition distributions from the Trust, and that— under either Hawaii or California law — 11 U.S.C. § 541 (a)(6) and § 541(a)(7) permit the bankruptcy trustee to compel turnover of all post-petition income distributions from the Trust. We review the bankruptcy court’s conclusions of law de novo and findings of fact for clear error. In re Hoopai, 581 F.3d 1090, 1095 (9th Cir.2009).

We apply federal choice-of-law rules in bankruptcy cases. In re Lindsay, 59 F.3d 942 , 948 (9th Cir.1995). Under the considerations from the…