- Ashurst Land and Cattle, LLC v. Rancho Mountain Properties, No. 13-56204 (9th Cir. July 14, 2015) (NOT FOR PUBLICATION)
- AFFIRMING the district court's order granting defendant's motion to dismiss pursuant to Fed. R. Civ. P. 12(b)(6) de novo, the Ninth Circuit Court of Appeals held that (a) the district court properly concluded that plaintiffs lacked standing to raise the alleged unlawful foreclosure claims, as such claims were exclusively property of the bankruptcy estate, and (b) the district court did not abuse its discretion by dismissing plaintiffs' claims with prejudice, as plaintiffs brought action in bad faith to defendants' detriment. The panel reasoned that bankruptcy code endows the bankruptcy trustee with the exclusive right to sue on behalf of the estate.
- Procedural context:
- Plaintiffs appeal the district court's order granting defendant's motion to dismiss under Fed. R. Civ. P. 12(b)(6) and denying plaintiff additional opportunity to amend complaint.
- The district court entered an order granting defendant's motion to dismiss pursuant to Fed. R. Civ. P. 12(b)(6). All claims asserted by plaintiff and arising out of the real property at issue were released by the bankruptcy trustee in his settlement agreement with defendants.
- W. FLETCHER, PAEZ, and BERZON, Circuit Judges.
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