First Yorkshire Holdings, Inc. v. Pacifica L 22, LLC (In re First Yorkshire Holdings, Inc.)

Summarized by John Marck , OFFICE OF THE DISTRICT ATTORNEY
13 years 9 months ago

Citation:

BAP No. CC-11-1144-KiMkH (9th Cir. May 10, 2012)

Tag(s):

Ruling:

Vacated and remanded the bankruptcy court's order granting a Stay Relief Order under § 362(d)(2) and granting relief under § 362(d)(4). Finding the bankruptcy court abused its discretion by failing to make any findings on the equity and value of Debtor’s property interest in its junior deed of trust under § 362(d)(2). Also finding the bankruptcy court abused its discretion in granting relief under § 362(d)(4), when relief under § 362(d)(4) potentially could affect other non-debtor parties, and the bankruptcy court failed to make any findings on such a matter.

Procedural context:

Appeal of an order from the bankruptcy court granting appellee relief from the automatic stay under 11 U.S.C. § 362(d)(2) and (d)(4).

Facts:

Debtor obtained an interest in three separate parcels of encumbered real property. A non-debtor borrower obtained a purchase money loan to purchase the Real Property. Non-debtor executed a grant deed gifting the Real Property to an outside corporation, which took the Real Property subject to a note and the first deed of trust. The outside corporation executed two more deeds of trust on the Real Property: a second deed of trust in favor the Debtor, and a third deed of trust. The outside corporation assigned its interest in the note and first deed of trust to the appellee. The outside corporation executed a grant deed granting back to the non-debtor a 25% interest in the Real Property, thereby making them co-owners. The debtor filed a chapter 11 petition for relief just 23 days after recording its Lien Interest. Appellee moved for relief from stay under § 362(d)(1), (d)(2)(A) and (B), and (d)(4).

Judge(s):

KIRSCHER, MARKELL, and HOLLOWELL

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