JPMCC 2007-C1 Grasslawn Lodging v. Transwest Resort Properties, No. 12-17176 (9th Cir. 2015)
Annotate this CaseLender challenged the district court's denial of Lender's appeal from the bankruptcy court's order confirming a Chapter 11 plan of reorganization based on equitable mootness grounds. At issue was whether a lender that made colorable objections to a plan of reorganization in bankruptcy court and then diligently sought a stay in order to litigate those objections may obtain review of its objections on appeal even though the plan has been implemented. The court held that the lender’s objections are not equitably moot and should be considered on appeal because it would be possible to devise an equitable remedy to at least partially address the lender’s objections without unfairly impacting third parties or entirely unraveling the plan. Accordingly, the court reversed and remanded for further proceedings.
Court Description: Bankruptcy. The panel reversed the district court’s decision dismissing on equitable mootness grounds an appeal from the bankruptcy court’s order confirming a Chapter 11 plan of reorganization. The panel held that even though the plan had been implemented, a lender’s colorable objections to the plan were not equitably moot because the lender had diligently sought a stay, and it would be possible to devise an equitable remedy to at least partially address the lender’s objections without unfairly impacting third parties or entirely unraveling the plan. The panel remanded the case for further proceedings. Dissenting, Judge M. Smith wrote that the district court’s decision should be affirmed because the remedies the lender proposed would be grossly inequitable to a third-party investor and would surely jeopardize the reorganization. IN RE TRANSWEST RESORT PROPERTIES 3
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.