Fraud requires actual or constructive intent, which is a longstanding principle in bankruptcy law. The Ninth Circuit's decision in In re EPD Investment Co., LLC, however, establishes a significant precedent: proof of a Ponzi scheme's existence alone constitutes...
In Rey v. Urquijo (In re Rey), BAP No. CC-23-1120-SGC (March 29, 2024), the United States Bankruptcy Appellate Panel of the Ninth Circuit (“BAP”) affirmed the bankruptcy court’s decision and held that two separate residential structures on a single plot of land, one...
In Issa v. Royal Metal Industries, Inc (In re X-treme Bullets, Inc.), Case No. 22-16143 (February 28, 2024), the Court of Appeals for the Ninth Circuit (“Ninth Circuit”) reaffirmed the long-standing principle that a creditors’ committee can obtain derivative standing...
In Law Finance Group, LLC v. Key, --- P.3d ---, 2023 WL 4168752 (2023), the Supreme Court reversed and remanded the lower courts' decisions, and instead held that the deadline under § 1288.2 for seeking vacatur of an arbitral award is a non-jurisdictional statute of...
In In re Clifton Capital Group, LLC v. Sharp (In re Matter of: East Coast Foods, Inc.), No. 21-55967 (9th Cir. May 8, 2023), the United States Court of Appeals for the Ninth Circuit ("Ninth Circuit") upheld the Bankruptcy Court’s determination that a creditor...
In Sphere Acquisition LLC v. Bella Hospitality Group, LLC et al. (In re Bella Hospitality Group, LLC), BAP No. NV-22-1144-BGC (March 22, 2023), the United States Bankruptcy Appellate Panel of the Ninth Circuit ("BAP") held that the bankruptcy court erred in...
In In re Simon Vernon Rodriguez and Marilyn Kay Schipull ("Rodriguez/Schipull"), BAP No. NV-22-1174-CBG, the United States Bankruptcy Appellate Panel of the Ninth Circuit ("BAP") found that, because the Nevada state court determined a debtor had violated Nevada...
In Babaee v. Marshack (In re Babaee), No. 22-60022, the Ninth Circuit affirmed the decision of the Bankruptcy Appellate Panel ("BAP"), holding that the Debtors do not have constitutional or prudential standing to challenge the short sale of their property. A short...
In G Companies Management LLC v. LREP Arizona LLC, (No. G060992, 2023 WL 2011816 (Cal. Ct. App. Feb. 15, 2023)) ("G Companies") the Court of Appeals, Fourth District, Division 3, answered the question: Does California's usury limitations constitute a "strong public...
The webinar led by Judge Albert and J. Scott Bovitz discussed the implications of the United States Supreme Court decision in In re Bartenwefer. Judge Albert highlighted that, historically under the United States Bankruptcy Code, you have to have a "bad actor" to deny...