Post-Petition Individual Bankruptcy Does Not Affect Corporation’s Standing

In this breach of contract case, the defendant asserted that the plaintiff lacked standing to pursue its claim because the plaintiff’s owner filed for bankruptcy individually.  According to the defendant, the bankruptcy trustee would have been the only party with standing to prosecute the claim.  The Court rejected this argument, however, because the lawsuit was filed two years before the plaintiff filed for bankruptcy and, more importantly, the plaintiff (a coroporation) never itself filed for bankruptcy.  Thus, the plaintiff could establish standing.

Keane Landscaping v. Divine Group

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