Lee v. Farrar (In re Gold Strike Heights Homeowners Assoc.)
- Summarized by Lars Fuller , BakerHostetler
- 7 years 7 months ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- BAP No. EC-16-1169-KuBH & BAP No. EC-16-1283-KuBH (9th Circuit, Jul 12,2018) Not Published
- Tag(s):
-
- Ruling:
- BAP for 9th Circuit affirmed bankruptcy court (ED Cal.) entry of judgment on the pleadings in favor of defendant-trustee, and grant of motion for attorney's fees as prevailing party. Tenant had no standing to contest pre-bankruptcy foreclosure by debtor, and failed to plead adequate facts to allege duty from debtor to tenant, risk of injury demonstrating serious emotional distress to support negligence claim, or intent to support intentional tort claim. California statute supported award of attorney's fees for defendant-trustee based on action to enforce "governing documents" of HOA.
- Procedural context:
- In removed adversary proceeding, bankruptcy court (ED Cal.) granted defendant's motion for judgment on the pleadings, and then granted defendant's motion for attorney's fees. Plaintiff appealed to BAP for 9th Cir.
- Facts:
- Distressed developer sold lots in a subdivision, but only developed one lot. Lee leased lot, residing in manufactured home. Developer formed homeowner's association (HOA1), but HOA1 was suspended by California Secretary of State. Developer formed second HOA (HOA2), and paid monthly assessments for years, but ceased making payments for various reasons, including alleged mismanagement of HOA2. HOA1's agent foreclosed on lots, including Lee's lot, and acquired trustee's deeds on lots. HOA2 sought rent from Lee. Lee disputed HOA2's ownership and right to receipt of rent. HOA2 sought to evict Lee for nonpayment of rent. Lee sued HOA1 and HOA2 for declaratory relief and damages. HOA2 then filed bankruptcy under chapter 7. Chapter 7 trustee removed Lee's state court action to bankruptcy court and moved for judgment on pleadings, asserting that Lee had no standing to challenge foreclosure sale as a tenant, and no basis for claim against bankruptcy estate.
- Judge(s):
- Kurtz, Brand, Hursh
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