In Re Nance

556 F.2d 602 (1977)

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Nature of the Case

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Facts

Nance was a pro-football player for the Boston Patriots. Nance was in debt to Coolidge Bank and signed a document entitled 'Assignment of Contract.' The assignment recited Nance's compensation under his Patriots contract and had a clause that assigned a portion of his contract earnings to Coolidge. Nance was told that the instrument was merely something to keep the board of the bank happy. The bank denies that statement. Nance was traded to another club, and Myers his agent had full power of attorney on all monies due Nance. More trouble came from the bank and Nance executed a 'Declaration of Revocable Trust' naming himself as sole beneficiary with the Bank and Myers trustees with all rights to the monies from the Patriots and a notice provision. More trouble ensued, and Nance attempted to get the deferred compensation from the Patriots, and a balance of $29,000.09 was paid to Nance. Nance only paid $5000 of that to the bank. The Bank sued him, and Nance filed for bankruptcy. The bank sought a petition to the bankruptcy court for $24,000.09 of the monies due to be declared nondischargable. The bankruptcy judge ruled that there was an effective assignment of the monies. Nance appealed, and the district court reversed citing the fact that the assignment was ineffective under Mass. Gen. Law Ann ch.154. The bank then appealed.