Romeo Charlie, Inc. (RCI) appeals a district court order affirming a bankruptcy court's denial of RCI's post-confirmation motion to compel Trustee Howard J. Berlin of the Piper Aircraft Irrevocable Trust to provide records used by actuaries for a recomputation process mandated by the Trust Instrument. Piper Aircraft Corporation, the debtor, filed for Chapter 11 reorganization in 1991, and a confirmation order was entered in 1995, establishing the Trust to address creditor claims. RCI, as a Class Interest Holder, has a contingent financial interest in the Trust, with potential distributions dependent on a Recomputation Date, July 11, 2002.
The Trustee engaged two actuarial firms to prepare reports assessing the Trust's financial viability to cover future claims, which indicated insufficient funds. RCI's motion sought disclosure of information provided to the actuaries, but the bankruptcy court ruled that the Trust Instrument did not obligate the Trustee to disclose such information, leading to RCI's appeal. The district court upheld the bankruptcy court's decision, and RCI subsequently appealed to the Eleventh Circuit, which is tasked with reviewing whether the district court erred in affirming the bankruptcy court's denial of the motion to compel.
Review of discovery orders is conducted for abuse of discretion, as established in case law. Specifically, the bankruptcy court's denial of the trustee’s request for additional discovery was upheld, with precedents indicating that similar denials do not constitute an abuse of discretion. In this instance, the bankruptcy court found that RCI was provided all necessary information as stipulated by the Trust Instrument regarding financial distribution reports to creditors, and RCI acknowledged receipt of this information. RCI had ample opportunity to analyze the data to ascertain any potential breach by the Trustee and to take appropriate action. Furthermore, during the negotiation of the Trust Instrument, RCI could have sought terms for additional information but did not do so. The Trust Instrument explicitly details how distributions are determined and does not allow for participation by Interest Holders in the re-computation process. Additionally, applicable regulations regarding the Trustee's disclosure obligations do not mandate further information beyond what RCI had received through the Trust Instrument unless a court orders otherwise. Consequently, the bankruptcy court properly concluded that there was no equitable basis to compel the additional information RCI sought. The decision was affirmed.
