Chase Manhattan Mortgage Corp. v. Thompson (In re Thompson)
Docket: Docket No. 02-5034
Court: Court of Appeals for the Second Circuit; October 9, 2003; Federal Appellate Court
Chase Manhattan Mortgage Corp. extended a loan of $143,036 to Norma A. Thompson in 1996, secured by her three-unit property in Hartford, Connecticut, along with an interest in the rental income. Following Thompson's Chapter 13 bankruptcy filing on May 2, 2000, her debt to Chase amounted to approximately $138,900.88. On June 8, 2000, Thompson moved to bifurcate Chase’s claim under 11 U.S.C. 506(a), seeking to reduce it to the collateral's value and classify the remaining balance as unsecured. The stipulated fair market value of the property was $75,000, but Chase contended that their secured claim should exceed this value due to their interest in rental income.
On November 16, 2000, the bankruptcy court ruled that Chase's secured claim was limited to $75,000, dismissing the claim for rental income since it was factored into the property's fair market value. Thompson's second amended Chapter 13 plan, confirmed on January 23, 2001, allowed her to keep the property and mandated payment of Chase's $75,000 claim, with Chase's unsecured claim discharged. Chase’s appeal to the district court was affirmed, leading to a further appeal. The appellate court upheld the prior rulings, emphasizing Chase's stipulation regarding the property’s value and dismissing their arguments as meritless. The court also addressed a jurisdictional question regarding the timeliness of Chase's appeal but deemed it unnecessary to resolve given the outcome on the merits. The district court’s judgment was affirmed.
