Eden Place, LLC v. Sholem Perl (In re Sholem Perl)
- Summarized by Kevin Baum , Windels Marx Lane & Mittendorf, LLP
- 9 years 3 days ago
- Citation:
- Eden Place, LLC v. Perl (In re Perl), No. 14-60039, --- F.3d --- (9th Cir. Jan. 8, 2016)
- Tag(s):
-
- Ruling:
- Reversing the Bankruptcy Court, the Ninth Circuit held that an entity that had purchased the debtor's real property through a non-judicial foreclosure sale did not violate the automatic stay by evicting the debtor because the Ninth Circuit concluded that the debtor did not have any legal or equitable interest remaining in the property at the time of the eviction since a state court unlawful detainer judgment and writ of possession, which had been issued prior to the debtor's bankruptcy case, bestowed all legal title and rights of possession to the purchasing entity.
- Procedural context:
- The Bankruptcy Court ruled that the purchasing entity violated the automatic stay by evicting the debtor. The Bankruptcy Appellate Panel affirmed. The purchasing entity appealed to the Ninth Circuit
- Facts:
- The purchasing entity obtained an unlawful detainer judgment and writ of possession against the debtor after the debtor refused to vacate real property, which had been sold to the entity at a non-judicial foreclosure sale. Rather than complying with the state court, the debtor instead filed for bankruptcy under chapter 13 of the Bankruptcy Code. The debtor then removed the state court proceedings to the Bankruptcy Court. The purchasing entity responded by (1) seeking to remand the proceedings and (2) arguing that the automatic stay did not apply. Before the Bankruptcy Court held a hearing on the stay relief motion, the sheriff evicted the debtor. The debtor then filed an emergency motion to enforce the automatic stay.
- Judge(s):
- Susan P. Graber, Johnnie B. Rawlinson, and Paul J. Watford, Circuit Judges
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