Legal Opinion

Lehman Commercial Paper, Inc. v. Palmdale Hills Property, LLC (In Re Palmdale Hills Property, LLC)

United States Bankruptcy Appellate Panel for the Ninth Circuit

Decided December 15, 2009No. BAP Nos. CC-09-1100-HPaMk, CC-09-1101-HPaMk, CC-09-1102-HPaMk, CC-09-1103-HPaMk, CC-09-1104-HPaMk, CC-09-1105-HPaMk, CC-09-1106-HPaMk, CC-09-1107-HPaMk. Bankruptcy No. SA 08-17206-ESPublishedCited by 23 opinions

1Opinion of the Court

OPINION

HOLLOWELL, Bankruptcy Judge.

The issue presented in this appeal is whether a debtor violates the automatic stay of its creditor’s bankruptcy case when it proposes to equitably subordinate the creditor’s claim and transfer the lien securing the claim under § 510(c).1 Because, in this case, equitable subordination would modify the creditor’s property interest, we find it violates the creditor’s automatic stay. Accordingly, we REVERSE those provisions of the bankruptcy court’s orders on appeal that find otherwise.

I. FACTS

Lehman Commercial Paper Inc. (“Lehman Commercial”) is a debtor in a…

2Cases cited26 opinions

In the Matter of Mobile Steel Company, Debtor. Elaine E. Benjamin v. Lester Y. Diamond, as Trustee in Bankruptcy for Mobile Steel, Inc.Court of Appeals for the Fifth Circuit · 1977
In Re Robert Gruntz, Debtor. Robert Gruntz v. Opinion County of Los Angeles Los Angeles District AttorneyCourt of Appeals for the Ninth Circuit · 2000
In the Matter of Harry Fondiller, Debtor. Rosalyn Fondiller v. Jerome E. RobertsonCourt of Appeals for the Ninth Circuit · 1983
United States v. NolandSupreme Court of the United States · 1996
In Re Baldwin-United Corporation Litigation. Vincent Erti, Joseph and Elizabeth Chupko, George and Margaret Ledney, William Neil Aicholtz and Janet Aicholtz and Genevieve Novicky on Behalf of Themselves and All Others Similarly Situated v. Paine Webber Jackson & Curtis, Inc., Paine Webber Group, Inc., Paine Webber, Inc., Pwjc Insurance Sales, Inc., Planco Inc., Donald B. Marron and Donald E. Nickelson, Paine Webber Group, Inc., Paine Webber Incorporated and Pwjc Insurance Sales, Inc., Third-Party-Plaintiffs-Appellees v. Baldwin-United Corporation and D.H. Baldwin Company, Third-Party-Defendants-AppellantsCourt of Appeals for the Second Circuit · 1985

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3Cited by23 opinions

Palmdale Hills Property, LLC v. Lehman Commercial Paper, Inc.Court of Appeals for the Ninth Circuit · 2011
Ritzen Grp., Inc. v. Jackson Masonry, LLC (In Re Jackson Masonry, LLC)Court of Appeals for the Sixth Circuit · 2018
In Re Lehman Brothers Holdings Inc.District Court, S.D. New York · 2010
Copeland v. Kandi (In Re Copeland)United States Bankruptcy Court, W.D. Washington · 2010
Morgan v. Aurora Pump Co.Court of Appeals of Washington · 2011

18 more not listed; retrieve them via the Exa API.