Monge v. Rojas, No. 15-50180 (5th Cir. 2016)Annotate this Case
Debtors challenged the district court’s judgment that adopted in part the bankruptcy court’s proposed findings of fact and conclusions of law. The court concluded that the district court need not sustain debtors’ objections merely because they are unopposed; it may overrule the objections if they lack merit, as the district court indeed found. In this case, the district court overruled debtors’ objection to the bankruptcy court’s proposed finding that they must have realized there was no equity in the Thoroughbred Property. Under the circumstances, the court could not say that the district court clearly erred in concluding that debtors knew or should have known, by the closing date, that defendants would receive no equity in the Thoroughbred Property. Accordingly, the court affirmed the district court's adoption of the bankruptcy court's finding. The court also concluded that debtors' claim that the district court erred in overruling their objection to the bankruptcy court’s proposed finding that defendants did not misrepresent to debtors that defendants expected to make their rental payments solely from the equity received through the sale of the Thoroughbred Property was both meritless and waived. The court rejected debtors' remaining claims and affirmed the judgment.