The Trustee in Bankruptcy brought a motion for the payout of its 50% share of proceeds from the sale of a property, which had been vested in the Trustee following a finding of fraudulent conveyance.
The bankrupt's spouse brought a cross-motion claiming deductions from the Trustee's share for carrying costs, improvements, and a line of credit debt.
The court granted the Trustee's motion and dismissed the cross-motion, finding that the parties' prior agreement did not provide for such deductions, the expenses did not increase the property's capital value, and the equitable claims were barred by cause of action estoppel.
