Question
Giovanni has always been a religious man. He grew up as a member of the Church of Rock and has stayed very active in the
Giovanni has always been a religious man. He grew up as a member of the Church of Rock and has stayed very active in the religious community. The Church is a qualified charitable entity in New Jersey that actively recruits young members to join the board of directors. Giovanni is a successful attorney and he makes frequent donations to the church for all sorts of fundraising events.
In 2000, when Giovanni "accidentally" comingles his funds with a client's funds, he is disbarred from the practice of law. He continues to make a little money lecturing on "bad legal practices," but he cannot keep up the lifestyle he has come to know. He turns to the church for support and befriends Ethel, an elderly congregant who gives Giovanni hope that his life will turn around. When Ethel passes away in February 2003, she leaves Giovanni a $45,000 inheritance. Grateful for her support and encouragement, and knowing that he would not have received this request without his continued church activities, he immediately donates $40,000 to the church.
In August of 2003, Giovanni can no longer afford his home and he has substantial credit card debt and medical bills. He files for Chapter 7 bankruptcy and hopes he can work out a fresh start. While the bankruptcy is underway, his Chapter 7 Trustee files a motion for summary judgment seeking to avoid the $40,000 donation, saying that this money should go to his creditors instead. Giovanni is terribly upset and says that he has always donated to the church. He gives the Trustee a chart outlining his income and donation in years past.
19992000200120022003
Church Donations $56,000$3,210 $2,018$1,312$44,650
Income $622,222$80,250$33,633$26,240$48,720
Donations as a percent of income 9% 4% 6% 5% 92%
Who is entitled to this $40,000? Will the church be allowed to keep the money? Why or why not? use statutory law and case law
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started