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Justia Weekly Opinion Summaries

Bankruptcy
May 1, 2020

Table of Contents

In re: Point Center Financial, Inc.

Bankruptcy

US Court of Appeals for the Ninth Circuit

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Bankruptcy Opinions

In re: Point Center Financial, Inc.

Court: US Court of Appeals for the Ninth Circuit

Docket: 18-56398

Opinion Date: April 29, 2020

Judge: Marbley

Areas of Law: Bankruptcy

The Ninth Circuit affirmed the district court's judgment affirming the bankruptcy court's order granting a Chapter 7 trustee's motion to exercise management rights over Dillon and authorizing the trustee's assumption of the operating agreement with Dillon. Dillon is a limited liability company created to hold title to foreclosed property securing investments by private investors in Point Center Financial, and appellants are the former principal of Point Center Financial, the debtor, and members of Dillon. The panel held that the Harkey parties have standing to pursue this appeal; the bankruptcy court had subject matter jurisdiction to confirm the vote establishing the trustee as manager of Dillon and to hear the assumption motion; the bankruptcy court properly authorized the trustee to exercise management rights over Dillon after the majority of Dillon's members voted for the trustee to manage Dillon; the bankruptcy court properly extended its own deadline for assumption of the operating agreement pursuant to Fed. R. Bankr. P. 9006(b)(1)(2); and the panel need not reach the question of equitable mootness because it affirmed the district court on other grounds.

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