Legal Opinion

GMAC Mortgage Corp. v. Salisbury (In Re Loloee)

United States Bankruptcy Appellate Panel for the Ninth Circuit

Decided November 2, 1999No. BAP No. CC-98-1778-KMoB. Bankruptcy No. LA 97-46746-BRPublishedCited by 36 opinions

1Opinion of the Court

OPINION

KLEIN, Bankruptcy Judge.

We confront a backhanded resolution of a lien priority dispute incident to a sale of overencumbered property free and clear of liens. The issue is the legitimacy of the procedure used to assign a junior position to a residential mortgage lender who did not react fast enough to a motion to sell for less than the full amount of liens.

We conclude that due process was denied when a lien priority dispute was resolved in a sale motion without appropriate notice and without an adversary proceeding. Since the sale order was void to the extent that it purported to…

2Cases cited9 opinions

  1. Mullane v. Central Hanover Bank & Trust Co.Supreme Court of the United States · 1950
  2. Memphis Light, Gas & Water Division v. CraftSupreme Court of the United States · 1978
  3. Pavelich v. McCormick, Barstow, Sheppard, Wayte & Carruth LLP (In Re Pavelich)United States Bankruptcy Appellate Panel for the Ninth Circuit · 1999
  4. In Re Center Wholesale, Inc.Court of Appeals for the Ninth Circuit · 1985
  5. 15 Collier bankr.cas.2d 1459, Bankr. L. Rep. P 71,522 in Re Golden Plan of California, Inc. State Loan Servicing, Inc. Financial Securities Agency, Inc. Mid-Central California, Inc., Debtors. Jesse Bear v. Melvyn J. Coben, Trustee of Golden Plan of California, Inc., Defendant- Al Fox v. Melvyn J. Coben, Trustee of Golden Plan of California, Inc., Defendant- Robert Ackerman v. Melvyn J. Coben, Trustee of Golden Plan of California, Inc., DefendantCourt of Appeals for the Ninth Circuit · 1987

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3Cited by36 opinions

  1. Ruvacalba v. Munoz (In Re Munoz)United States Bankruptcy Appellate Panel for the Ninth Circuit · 2002
  2. Garner v. Shier (In Re Garner)United States Bankruptcy Appellate Panel for the Ninth Circuit · 2000
  3. Beneficial California, Inc. v. Villar (In Re Villar)United States Bankruptcy Appellate Panel for the Ninth Circuit · 2004
  4. Brawders v. County of Ventura (In Re Brawders)Court of Appeals for the Ninth Circuit · 2007
  5. Demos v. Brown (In Re Graves)United States Bankruptcy Appellate Panel for the Ninth Circuit · 2002

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