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Bankr. E.D.N.C.: In re Fifield- Burden of Establishing Proof of Claim Amount

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By Ed Boltz, 7 January, 2013
Summary: The Chapter 13 Debtors owned 26 lots in the Waterside Villages, secured by a Deed of Trust to the Bank of Currituck, which had foreclosed on the properties on July 29, 2009. Waterside Villages filed a Proof of Claim asserting homeowners dues of $77,844.00. The Debtors objected to the Proof of Claim on basis that they had been denied access to the properties after Wachovia Bank foreclosed on the subdivision developer, preventing the Debtors from marketing the properties. Further, the Debtors alleged that Waterside Villages had done little to maintain the properties during this time, providing no basis for the asserted dues. The bankruptcy court found that the Debtors presented sufficient evidence to rebut the presumption of the validity of the Proof of Claim. This shifted the burden to Waterside Villages to establish the amount of the claim. See In re Harford Sands Inc., 372 F.3d 637, 640 (4th Cir. 2004). Based on the evidence presented, the claim was reduced to $56,160.00. For a copy of the opinion, please see:   Fifield- Burden of Establishing Proof of Claim Amount.pdf

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