IN RE: AIR NEW ORLEANS, INC. CHAPTER 7, DEBTOR.

CASE NO. 88-10164, SECTION A.United States Bankruptcy Court, E.D. Louisiana.
June 23, 2010

REASONS FOR DECISION
ELIZABETH MAGNER, Bankruptcy Judge

On June 3, 2010, the Court ordered Tony B. Jobe (“Jobe”) to turn over $41,611.14 to Jean O. Turner, Trustee of the Estate of Air New Orleans, Inc. (“Trustee”).[1] Jobe timely filed a Motion for Reconsideration and for Evidentiary Hearing.[2]

Pursuant to FRCP 59, which is made applicable to this proceeding by FRBP 9023, the Court may grant a new trial “for any reason for which a rehearing has heretofore been granted in a suit in equity in federal court.” The Court may also:

open the judgment if one has been entered, take additional testimony, amend findings of fact and conclusions of law or make new ones, and direct the entry of a new judgment.[3]

On February 24, 2010, the Court ordered a status conference to determine why this case was still pending.[4] In the status conference, Trustee requested turnover of $41,611.14 from Jobe, which ultimately resulted in the Court’s Order dated June 3, 2010, of which Jobe seeks reconsideration.

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Section 542 of the Bankruptcy Code requires entities in control of estate property to turn it over to the trustee.[5] However, section 542 is not self-executing, and “when the entity obligated to perform fails to perform, the trustee’s remedy is to obtain a court order . . . “[6]

“A request for an order . . . shall be by written motion,” unless authorized by the Bankruptcy Rules.[7] Accordingly, the Motion for Reconsideration is granted, and the Court will vacate its Order requiring turnover to Trustee of $41,611.14. Trustee may file a Motion for Turnover in the record of the case, and set it for hearing.

[1] Pl. 524.
[2] Pl. 529. Motions for Reconsideration are essentially Motions for New Trial or to Amend Judgment under FRBP 9023. FRBP 9023
provides that such motions shall be filed no later than 14 days after entry of judgment.
[3] FRCP 59(a)(2).
[4] Pl. 501.
[5] 11 U.S.C. § 524.
[6] In re Bernstein, 252 B.R. 846, 852 (Bankr.D.Dist.Col. 2000).
[7] FRBP 9013.

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