Sears v. Sears (In Re AFY, Inc.)

COLLOTON, Circuit Judge.

Korley Sears and Robert Sears appeal a decision of the Bankruptcy Appellate Panel affirming a bankruptcy court's 1 dismissal of their claims in a protracted family dispute. We agree with the BAP that the claims are barred by the shareholder standing rule, and we therefore affirm.

I

In 2007, a group of relatives owned shares in a Nebraska corporation called Ainsworth Feed Yards Company, Inc. ("AFY"). Several of these parties-Rhett Sears, Ronald Sears, and Dane Sears-sold their interest to AFY and Korley Sears through a stock sale agreement. The agreement conditioned the…