In Cantu v. Stone (In re Cantu), Case No. 14-40762 (5th Cir. May 20, 2015), the Fifth Circuit ruled that a professional negligence claim that accrued during the pendency of the debtors’ Chapter 11 case was property of the Chapter 7 estate when the Chapter 11 case converted to Chapter 7:
“Because the misconduct alleged against [the DIP’s accountant] that gave rise to the settlement depleted the estate’s assets, delayed the [Chapter 11] bankruptcy, and injured the creditor body by preventing confirmation of a reorganization plan that could have resulted in a larger recovery for the creditors, the causes of action against him accrued prior to conversion and therefore belong to the estate rather than the Cantus.
See also Cantu v. Schmidt (In re Cantu), — F.3d — –, 2015 WL 1809013 (5th Cir. Apr. 16, 2015)
