Coeptis Equity Fund LLC v. Hoskins (In re Coeptis Equity Fund LLC)
- Summarized by David Treacy , U.S. Bankruptcy Court, Eastern District of Kentucky
- 1 year 11 months ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- No. 23-60001 (9th Circuit, Mar 15,2024) Not Published
- Tag(s):
-
- Ruling:
- The U.S. Court of Appeals for the Ninth Circuit held a bankruptcy court didn't err in denying a chapter 11/subchapter V debtor's motion for relief under Fed. R. Bankr. P 9024/Fed. R. Civ. P. 60(b)(6). Debtor didn't appeal the order removing it from possession. It cited no exceptional circumstances preventing it from directly appealing that order when seeking relief therefrom under Civil Rule 60(b)(6). Also, the debtor's merits arguments failed as (1) a sub V trustee isn't a receiver, so 11 U.S.C. § 105(b) wasn't at issue, and (2) a local rule on noticing didn't apply to orders to show cause.
- Procedural context:
- The Ninth Circuit applied an abuse of discretion standard in evaluating whether the bankruptcy court erred when it (a) found no extraordinary circumstances existed to warrant relief from its order removing Debtor from possession under 11 U.S.C. § 1185(a), and (b) did not provide Debtor with 28 days' notice to respond to an order to show cause in accordance with a local rule.
- Facts:
- Debtor Coeptis Equity Fund LLC filed a petition for relief under chapter 11 in the U.S. Bankruptcy Court for the Northern District of California, electing to proceed under subchapter V. The U.S. Trustee appointed a Subchapter V Trustee. The bankruptcy court later issued an order to show cause to Debtor as to why it should not be removed as a debtor in possession under 11 U.S.C. § 1185(a). The court found Debtor failed to show cause, removed Debtor as debtor in possession, and granted the Subchapter V Trustee authority to operate Debtor's business under 11 U.S.C. § 1183(b)(5). After Debtor did not timely file a plan, the Subchapter V Trustee moved to convert the case to chapter 7, and the court granted the motion. Debtor then moved for relief under Fed. R. Bankr. P. 9024 (incorporating Fed. R. Civ. P. 60(b)(6), contending the bankruptcy court erred in removing Debtor from possession and granting the Subchapter V Trustee authority as trustee in possession. The bankruptcy court denied that motion, and the Bankruptcy Appellate Panel for the Ninth Circuit affirmed.
- Judge(s):
- S. THOMAS, MCKEOWN, and CHRISTEN
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!
