Now Updating
George Czaplinski v. Bank of America

Summarizing by Lars Fuller

Capital Options, LLC v. Loomis, et al. (In re Capital Options, LLC)

BAP Nos. AZ-15-1165, 1166, 11167-JuKuJa (May 27, 2016) (unpublished) (3 related appeals)
Bankruptcy court properly ruled that Chapter 11 debtor's alleged 50% interest in an LLC was based upon a breach of an alleged oral agreement, which claim was time-barred under CCP Section 339's 2-year statute of limitations. Accordingly, the Debtor's Plan and claims against third parties, all of which relied upon the alleged 50% interest, were properly found to be without merit.
Procedural context:
Debtor filed 3 related appeals from the bankruptcy court's orders (1) denying confirmation of the Debtor's Chapter 11 plan, (2) dismissing the Debtor's case; (3) dismissing different adversary proceedings, and (4) denying reconsideration of the orders. The BAP affirmed the bankruptcy court orders.
Chapter 11 Debtor alleged that it held a 50% interest in G2, LLC, which was an asset recovery firm that helped victims of financial fraud determine the perpetrators of the fraud and recapture the misappropriated funds. Debtor filed an action for declaratory relief that it was entitled to 50% of the net income of G2. The bankruptcy court determined that the Debtor was aware that G2 denied the Debtor's alleged 50% interest in 2010, and failed to bring an action within 2 years of its knowledge of a breach of the alleged 50-50 ownership agreement, as require by California Code of Civil Procedure Section 339. The Debtor made a Motion for Reconsideration based on among other things, the fact that the contract was written and thsu the 4-year statute of limitations applied. The bankruptcy court declined to consider that argument because it was not, but could have been, raised in the Debtor's initial opposition to G2's motion to dismiss the claims. The bankruptcy court further determined that without an interest in G2, the Debtor's claims against third parties should also be dismissed.
JURY, KURTZ, and JAIME, Bankruptcy Judges.

ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!

About us in numbers

3144 in the system

3025 Summarized

1 Being Processed