Pringle
Pringle v. Facility Servs. of Am., Inc. (In re S. Pac. Janitorial Grp., Inc.)
Opinion
Lead Opinion
Clarkson, J.
The Court has received and reviewed the Motion for Default Judgment filed on June 12, 2018 [Dk. 10] ("Motion") by Plaintiff John P. Pringle, Chapter 7 Trustee ("Plaintiff"). Having reviewed and considered the Motion and attached evidence, as well as all the pleadings on the docket, the Court finds this matter is appropriate for disposition without a hearing. For the reasons set forth below, the Motion is DENIED without prejudice and the July 11, 2018 hearing is VACATED.
Plaintiff has requested turnover of property pursuant to 11 U.S.C. § 542 (a). § 542(a) is not applicable in this case. The Trustee seeks turnover of funds owed to the Debtor pursuant to an account receivable. The account receivable, i.e. the right to receive funds, is property of the Estate. See, e.g. , In re Anaheim Elec. Motor, Inc. , 137 B.R. 791 , 796 (Bankr. C.D. Cal. 1992) (finding that account receivables are property of the Estate but are not cash equivalents). However, the funds themselves that are owed pursuant to the account receivable are not property of the Estate that may be used, sold, or leased under § 363 until the account receivable has been converted into cash. See id .