Bankr. E.D.N.C.: In re Gene Express- Standing as a Party in Interest

Summary: AccuGenomics, Inc.’s (“AccuGenomics”) sought a determination pursuant to 11 U.S.C. § 365(p)(1)of whether certain patent rights under the license agreement between the debtor and the University of Rochester (“Rochester”) were considered property of the estate. The Chapter 7 Trustee objected, arguing that AccuGenomics lacked standing because it was neither a creditor or party in interest in this proceeding. A “party in interest,” is not defined by the Bankruptcy Code, but “is generally understood to include all persons whose pecuniary interests are directly affected by the bankruptcy proceedings” Yadkin Valley Bank & Trust Co. v. McGee (In re Hutchinson), 5 F.3d 750, 756 (4th Cir. 1993) (citations omitted), but not a just party or entity merely concerned with the outcome or result of a bankruptcy proceeding. Nor can a party establish standing by asserting the legal rights or interests of third parties. In re Village Rathskeller, Inc., 147 B.R. 665, 668 (Bankr. S.D.N.Y. 1992). Lacking any pecuniary interest and absent any response from Rochester, AccuGenomics did not have standing to raise this issue. For a copy of the opinion, please see: Gene Express- Standing as a Party in Interest.pdf