Bankr. L. Rep. P 70,629 in Re Transcontinental Energy Corporation, Debtor. Richard A. Davis, Trustee v. Owen E. Jackson

Owen E. Jackson, an unsecured creditor of the estate of Transcontinental Energy Corporation, opposed a compromise settlement between Trustee Richard A. Davis and an unsecured creditor. The district court affirmed the bankruptcy court’s ap proval of the compromise settlement. We affirm.

I

BACKGROUND

This appeal is the latest stage in a lengthy, complex dispute involving geothermal leases in Southern California. The present action arose out of a settlement agreement executed in 1968 between Transcontinental Power Company (“TPC”) and Geothermal Energy and Mineral Corporation (“Gemcor”). Pursuant to the settlement agreement, Gemcor received an assignment of various contractual rights under an agreement between Chloride Products, Inc. and TPC. Gemcor filed an action against Chloride Products in the United States District Court for the Southern District of California, seeking damages and royalties under the assigned contracts. Chloride Products filed various answers and counterclaims.

In 1970, Gemcor filed suit against TPC in Nevada state court. Gemcor alleged that TPC and its president, Owen E. Jackson, had exercised control over Chloride Products and had caused Chloride Products…