9th Circuit Rulings From Last Week

United States Ninth Circuit, 01/24/2012
In the Matter of Thorpe Insulation Co.,  
Insurance companies that did not reach settlements with the debtors are allowed to challenge the Chapter 11 reorganization plan where: 1) the appeal was not equitably moot; 2) the appellants met statutory, constitutional, and prudential standing requirements; 3) the appellants had standing in bankruptcy court to object to confirmation of the plan; and 4) anti-assignment provisions contained in contracts between the appellants and debtors were preempted by federal bankruptcy law. 

United States Ninth Circuit, 01/27/2012
Matter of Meruelo Maddux Properties, Inc., 
Debtor is a single asset case where: 1) the debtor existed solely to operate a 92-unit apartment complex; 2) the Code gives no basis for a “whole business enterprise” exception to single asset real estate debtor status that would allow the court to consider parent corporation and sister subsidiaries; and 3) relief from the automatic stay appropriate even though questions left about whether the debtor took timely corrective action to the bankruptcy court in the first instance.

California Court of Appeal, 01/25/2012
Flores v. Kmart Corp., 
In a wrongful death action brought against a corporation that had filed for Chapter 11 bankruptcy and confirmed a Plan, demurrer not appropriate where on the limited record of bankruptcy proceedings provided by the corporation, and consistent with due process principles, the corporation failed to demonstrate, at the demurrer stage, that the approval of the reorganization plan barred all of the plaintiffs’ claims. 

Thanks to Findlaw.com

Leave a Reply


+ two = 4