Del Toro Loan Servicing Inc. v.Takowsy (In re Takowsky)

Summarized by David Hercher , U.S. Bankruptcy Court, District of Oregon
11 years 3 months ago

Citation:

In re Takowsky, No. CC-13-1376-TaSpD (9th Cir. B.A.P. Nov. 12, 2014).

Tag(s):

Ruling:

The bankruptcy court could enter final judgment in a noncore, related action with the parties’ consent. Not-for-publication memorandum.

Procedural context:

The bankruptcy court entered judgment for the chapter 13 debtor-plaintiff in an adversary proceeding for the California state-law claim of wrongful foreclosure. At the conclusion of the trial, the defendant’s lawyer expressly agreed to entry of final judgment by the bankruptcy court. The bankruptcy court entered judgment for the plaintiff, and the defendant appealed to the BAP, which affirmed.

Facts:

Under 28 U.S.C. § 157(c)(2), a bankruptcy court may hear, determine, and enter appropriate orders and judgments in a related-to proceeding with the parties’ consent. In the Ninth Circuit, a bankruptcy court may constitutionally enter final judgment on a claim against a nonclaimant to the estate with the consent of the parties. Mastro v. Rigby, 764 F.3d 1090, 1095 (9th Cir. 2014) (addressing core matter). The adversary proceeding was a noncore proceeding that was related to the bankruptcy case because nonexempt proceeds sought by the plaintiff were subject to administration by the chapter 13 trustee.

Judge(s):

Laura S. Taylor, Randall L. Dunn, and Gary S. Spraker, Bankruptcy Judges. Judge Spraker, Chief Bankruptcy Judge for the District of Alaska, sat by designation.

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