Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Um v. Spokane Rock I, LLC

United States Court of Appeals, Ninth Circuit

September 14, 2018

Hyun J. Um; Thomas W. Price; Patricia A. Price, Appellants,
v.
Spokane Rock I, LLC, Appellee.

          Argued and Submitted May 17, 2018 Seattle, Washington

          Appeal from the United States District Court No. 3:15-cv-05787-BHS for the Western District of Washington Benjamin H. Settle, District Judge, Presiding

          J. Todd Tracy (argued) and Steven J. Reilly, The Tracy Law Group PLLC, Seattle, Washington, for Defendants-Appellants.

          Charles R. Ekberg (argued), Ryan P. McBride, and Laura Marquez-Garrett, Lane Powell PC, Seattle, Washington, for Plaintiff-Appellee.

          Before: Marsha S. Berzon and Andrew D. Hurwitz, Circuit Judges, and Raymond J. Dearie, [*] District Judge.

         SUMMARY[**]

         Bankruptcy

         The panel affirmed the district court's affirmance of the bankruptcy court's summary judgment denying discharge, under 11 U.S.C. § 1141(d)(3), of two individual Chapter 11 debtors' debt arising from a state-court judgment for fraud and misrepresentation.

         The panel affirmed, albeit on somewhat different grounds, the district court and bankruptcy court's conclusion that the debtors, co-founders of several real-estate management companies, were not entitled to discharge of the debt. The panel concluded that the Chapter 11 plan provided for the liquidation of all or substantially all of the property of the bankruptcy estate under § 1141(d)(3)(A). The panel also concluded that the debtors did not engage in business after consummation of the Chapter 11 plan, under § 1141(d)(3)(B), because they were simply employees in businesses owned or operated by others. The panel held that, assuming § 1141(d)(3) does not require that the debtor engage in a pre-petition business, the statute is not satisfied by mere employment in someone else's business after consummation of a Chapter 11 plan.

          OPINION

          HURWITZ, CIRCUIT JUDGE.

         Confirmation of a Chapter 11 plan of reorganization generally discharges a petitioner from pre-confirmation debts. 11 U.S.C. § 1141(d)(1)(A). But, under 11 U.S.C. § 1141(d)(3), a debt is not discharged if:

(A) the plan provides for the liquidation of all or substantially all of the property of the estate;
(B) the debtor does not engage in business after consummation of the plan; and
(C) the debtor would be denied a discharge under section 727(a) of [the Bankruptcy Code] if the case were a case under ...

Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.