Scheinert v. SOUTHERN RUBBER CO., INC.
Docket: 2990175
Court: Court of Civil Appeals of Alabama; March 16, 2000; Alabama; State Appellate Court
Ernest Edward Scheinert, Jr. sued Southern Rubber Company, Inc. for defamation and invasion of privacy. Southern Rubber successfully moved for summary judgment, leading Scheinert to appeal. Southern Rubber contended that Scheinert lacked standing due to a prior bankruptcy filed in 1998, which had resulted in the discharge of his debts. The bankruptcy trustee reopened Scheinert's estate prior to Scheinert filing his lawsuit in March 1999, leading Southern Rubber to argue that Scheinert's claims became part of the bankruptcy estate under 11 U.S.C. § 1306(a)(1). The trial court agreed, substituting James G. Henderson, the bankruptcy trustee, as the plaintiff and ruling that Scheinert no longer had standing to prosecute the case. Scheinert did not appeal this substitution order. The court referenced several legal precedents affirming that once a cause of action is part of a debtor's estate, the bankruptcy trustee assumes the right to pursue it, effectively removing the debtor's standing. Despite Scheinert's appeal being styled as coming from the trustee, it was actually filed by Scheinert himself, with no substitution of the trustee as the proper party to the appeal. The court concluded that Scheinert lacked standing, resulting in a dismissal of the appeal due to a lack of subject-matter jurisdiction. The judges concurred in the dismissal.