Steinberg v. Morton (In re Buchanan)

CLIVE W. BARE, Bankruptcy Judge.

At issue is whether the plaintiff trustees may avoid, pursuant to 11 U.S.C.A. § 544 (1979), an unrecorded deed executed by the debtors when the debtors’ title to the property involved is likewise derived from an unrecorded deed. Citing Tenn.Code Ann. § 66-5-106 (1982)1 and § 66-26-103 (1982),2 the trustees insist they may avoid the debtors’ unrecorded deed to defendant David F. Hill. However, defendants Hill maintain that the deed in question, executed in furtherance of a settlement agreement, was merely intended to serve as a release of any claim of the…