Havens v. Arnold Leong (In re Leong Partnership)

Case Type:
Case Status:
NC-17-1015-STaB; NC-17-1034-STaB (related appeals) (9th Circuit, Mar 23,2018) Not Published
Bankruptcy court's summary judgment dismissing involuntary chapter 11 petition filed against alleged debtor Leong Partnership affirmed.
Procedural context:
Appeal from the Bankruptcy Court for the Northern District of California; reviewed de novo.
Havens and Leong were involved in protracted litigation over their respective interests in FCC radio licenses. Leong filed a lawsuit in state court against Havens, and the state court ordered the parties into arbitration. After 10 years of pending arbitration, Leong moved for appointment of a receiver. The state court granted the appointment motion in large part because of Havens' recalcitrant conduct in FCC proceedings. Havens subsequently filed an involuntary bankruptcy petition against an entity called the Leong Partnership. Havens alleged that, through the receivership, Leong and his "partners" effectively sought to control Havens' companies and their FCC licenses. After an unsuccessful attempt to dismiss the involuntary petition, Leong filed a summary judgment motion, alleging that the claims of the petitioning creditors were subject to bona fide dispute. The bankruptcy court agreed with Leong and granted his summary judgment motion. Havens timely appealed.
Spraker, Taylor, Brand

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