Smeding v. Ahcom, Ltd. (In re Nuttery Farm, Inc.)

Summarized by Jamie Edmonson , Robinson & Cole LLP
14 years 1 month ago

Citation:

Case No. 10-17800; D.C. No. 3:10-cv-03146-WHA (not for publication and not precedent except as provided by 9th Cir. R. 36-3)

Tag(s):

Ruling:

Affirm ruling of district court dismissing appellants' appeal for lack of standing.

Procedural context:

Appeal from United States District Court for the Northern District of California.

Facts:

Bankruptcy court approved the sale of the Debtor's causes of action to Appellee, Ahcom. Appellants were initially identified as potential purchasers of the Debtor's causes of action, although the Trustee's notice indicated that the sale was subject to overbids based on Ahcom's interest in the assets. Appellants argued that the Trustee was obligated to provide a new notice period when he accepted Ahcom's counter-offer. The bankruptcy court held that the Trustee provided requisite notice of his intention to sell the causes of action. Appellants appealed to the district court, which dismissed the appeal for lack of standing. On appeal to the Ninth Circuit, Appellants argued that the causes of action originally to be sold did not include a fiduciary duty claim, but those sold to Ahcom did include the claim. The Court noted that Appellants did not raise this issue in their objections to the bankruptcy court, gave no indication of surprise, and did not identify any prejudice they suffered as creditors. Thus, the Court determined that Appellants lacked standing to raise the issue on appeal.

Judge(s):

McKEOWN, CLIFTON, and BYBEE, Circuit Judges

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