Gregory Garvin v. Cook Investments
- Summarized by Laura Coordes , Sandra Day O'Connor College of Law Arizona State University
- 5 years 8 months ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- 18-35119 (9th Circuit, May 02,2019) Published
- Tag(s):
-
- Ruling:
- District court's decision affirming bankruptcy court's order confirming debtor's chapter 11 plan affirmed.
- Procedural context:
- Appeal from the District Court for the Western District of Washington. Reviewed de novo.
- Facts:
- Five real estate holding companies filed for chapter 11. One of the debtor companies leased property to a company that grew marijuana on the property. The U.S. Trustee objected to confirmation of the debtor's plan, arguing that the lease violated the Controlled Substances Act and that the plan was therefore unconfirmable under § 1129(a)(3) because it was proposed by means forbidden by law.
A panel of the Ninth Circuit Court of Appeals affirmed confirmation of the plan, holding that § 1129(a)(3) requires bankruptcy courts to police the means of a plan's proposal rather than the substantive provisions of the plan itself. Thus, the panel held that the plan was not proposed by any means forbidden by law and could be confirmed.
- Judge(s):
- Graber, McKeown, and Christen
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