Estate of Daily v. Lilipuna Associates

SCHROEDER, Circuit Judge:

Two corporations referred to collectively as “the Lilipuna Entities” appeal the district court’s affirmance of the bankruptcy court’s order requiring that certain funds in the corporations’ hands be paid to the Chapter 7 trustee of the debtor, Sammy Daily. See In re Daily, 107 B.R. 996 (D.Haw.1989). The bankruptcy court’s ruling was based upon its conclusion that the corporations were alter egos of the debtor, and that the corporate form should therefore be disregarded and assets of the corporations deemed to be owned by the debt- or. The actual stock ownership of the…