Larsen v. Metropolitan Life Insurance (In Re Larsen)

MEMORANDUM DECISION

PEDER K. ECKER, Bankruptcy Judge.

ACTION

A case of first impression as to whether a warranty deed in escrow agreement may be given equitable adjustment considerations accorded an executory contract under South Dakota law, is before the Court. For reasons articulated below, the Court concludes that a deed in escrow is entitled to equitable adjustment treatment under South Dakota law. Restitution to the defaulting vendee debtor is appropriate where the monetary benefits paid under the contract exceed detriments the vendor creditor suffered and up to $30,000 of an executory land…