Maria Vista Estates v. Mi Nipomo, LLC
- Summarized by Laura Coordes , Arizona State University, Sandra Day O'Connor College of Law
- 9 years 5 days ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- CC-16-1111-TaLN (9th Circuit, Feb 21,2017) Not Published
- Tag(s):
-
- Ruling:
- Bankruptcy court's ruling that debtor could not pursue fraud claim and that fraud claim did not survive a court-approved settlement affirmed.
- Procedural context:
- Appeal from the bankruptcy court for the Central District of California; reviewed for an abuse of discretion.
- Facts:
- Chapter 7 debtor and its principal asserted that a lender fraudulently altered the legal description in a deed of trust securing a development loan. Both debtor and its principal filed for bankruptcy, and in both cases, the chapter 7 trustee administered the alleged fraud claim. Bankruptcy court found that trustee had not abandoned the fraud claim when it abandoned real property and that instead, trustee had entered into a settlement in which the debtors' ability to pursue the fraud claim was prohibited as part of related releases.
- Judge(s):
- Taylor, Lafferty, Novack
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