Field v. Henshaw (In re Henshaw)

AMENDED MEMORANDUM OF DECISION ON MOTION FOR SUMMARY JUDGMENT

Robert J. Faris, United States Bankruptcy Judge

This adversary proceeding presents the question whether the defendants can seek reformation of a deed in the face of the trustee’s rights as a bona fide purchaser of real estate.

I. Background

Most of the historical facts are undisputed, with one important exception.

The defendants in this adversary proceeding, Philip and Barbara Henshaw, are the parents of Michael Dylan Henshaw, one of the debtors. In 2007, Mr. and Mrs. Henshaw and the debtors acquired property in Kailua-Kona.1 The deed…