IN RE: LIVELIFE, LLC V. BAY POINT CAPITAL PARTNERS, LP, ET AL
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- 23-15815 (9th Circuit, Apr 11,2024) Not Published
- Tag(s):
-
- Ruling:
- As had the tria, court below, the U.S. Court of Appeals for the Ninth Circuit (Circuit) affirmed orders issued by the U.S. Bankruptcy Court for the District of Nevada (BC) that denied the claim of LiveLife LLC (LLC) to a first-priority lien on 16 Soaring Bird Court, Las Vegas, NV (Property), and confirmed that Bay Point Capital Partners LP (BP) and the trustee (TR) for the chapter 7 estate of Arron Afflalo (DR) had retained any security interest in the Property per Nevada law, which requires that the intention to create an equitable lien must be clear when an express contracts is its basis.
- Procedural context:
- The BC denied LLC's claim for a lien in the course of disposing of one or more motions for summary judgment. The U.S. District Court for the District of Nevada thereafter affirmed these same orders on appeal pursuant to 28 U.S.C. § 158(a)(1).
- Facts:
- The DR, an American former professional basketball player in the National Basketball Association, first executed a recorded subordination agreement with LLC, later followed by a deed of trust with that same LLC and later yet a secured note, another deed of trust, and a personal guaranty, with different parties. Indeed, while the subordination agreement states that that a separate deed of trust would create the LLC's security interest, "nobody drafted, executed, or recorded that separate deed of trust." Thus, at the beginning of the DR's case, the records of the Clark County Recorder would have shown entries for the LiveLife Deed of Trust and the Recorded Subordination Agreement, "both invalid documents giving notice of a conveyance that did not exist," and a deed of reconveyance to the DR from BofI Federal Bank, the entity whose lien position LiveLife later sought to assume, and thus no more than notice of Bofl's discharged lien.
- Judge(s):
- Mary H. Murguia; Salvador Mendoza Jr.; and Ana de Alba
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