|Title||Wolff v. Moncada (In re Carlos Moncada)|
Maria Ellena Chavez-Ruark
A Chapter 7 Trustee brought an adversary proceeding against the Defendant, the Debtor’s brother, seeking to avoid an alleged fraudulent transfer of real property made by the Debtor to the Defendant, recover the Debtor’s interest in the real property, and sell the property free and clear of any interest for the benefit of the bankruptcy estate. The Defendant moved for summary judgment on all counts claiming the Debtor held bare legal title to the real property in a resulting trust. The Trustee opposed summary judgment arguing that the doctrine of unclean hands prevented any equitable relief. Judge Ruark granted summary judgment finding that the Debtor’s interest in the real property was not property of the estate because a resulting trust existed and that the unclean hands doctrine did not apply.