CIT Bank, N.A. v Ryan (In re Ryan)

Case Type:
Case Status:
Reversed and Remanded
HI-16-1391-TaLB (9th Circuit, Jan 04,2018) Not Published
BAP for 9th Circuit reversed and remanded ruling of bankruptcy court (D. Hawaii) after bankruptcy court entered order approving of chapter 7 debtors' revised statement of intention regarding real property. BAP ruled appeal moot after state court dismissed debtors' claim challenging foreclosure based on expiration of statute of limitations. State court dismissal mooted bankruptcy appeal because reversal of substance of bankruptcy court ruling would not revive debtors' claim in state court. Contingency of pending state court appeal did not cure mootness or provide necessary jurisdiction.
Procedural context:
Bankruptcy court granted chapter 7 debtors motion for order approving amendment of statement of intention regarding real property over creditor's objection. Creditor appealed to BAP.
Debtors purchased real property in 2004, which they later used to secure loan. In 2009, Debtors filed bankruptcy under chapter 7. They scheduled their ownership statement in the bankruptcy, but in statement of intention declared they intended to surrender property. Debtors filed separate statement declaring they relinquished all interests in the property. Lender obtained relief from stay, which debtors did not oppose. Debtors obtained discharge and court closed bankruptcy. Lender foreclosed in 2010. In 2016, debtors brought wrongful foreclosure action in Hawaii state court. Lender defended with various defenses, including statute of limitations and judicial estoppel based on debtors' filings in bankruptcy. Debtors moved to reopen bankruptcy case, which bankruptcy court granted. Debtors then moved to amend their statement of intention and revoke their statement of relinquishment. Lender opposed. Bankruptcy court granted motion. The next day, the state court dismissed granted creditor's motion to dismiss debtors' wrongful foreclosure action based on expiration of statute of limitations. Debtors appealed state court ruling to intermediate appellate court.
Taylor, Lafferty, Brand

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