In re Point Center Financial, Inc., No. 16-56321 (9th Cir. 2018)
Annotate this CaseAn appellant's failure to attend and object at a bankruptcy court hearing has no bearing on the question of whether that appellant has standing to appeal a bankruptcy court order. The Ninth Circuit reversed the district court's dismissal of an appeal from the bankruptcy court's order authorizing a Chapter 7 trustee to assume the operating agreement of an LLC whose interests were implicated in the bankruptcy proceedings. The district court dismissed the appeal on the ground that appellants lacked standing to challenge the bankruptcy court order. The panel held that appellants' attendance and objection were not prerequisites for satisfying the "person aggrieved" requirement for prudential standing. Therefore, the panel remanded to the district court.
Court Description: Bankruptcy. The panel reversed the district court’s dismissal for lack of standing of an appeal from a bankruptcy court order that authorized a Chapter 7 trustee to assume the operating agreement of a limited liability company whose interests were implicated in the bankruptcy proceedings. The district court concluded that the members and original president of the company lacked standing to challenge the bankruptcy court order because, despite receiving adequate notice of the trustee’s assumption motion, they did not file an objection or attend the hearing before the bankruptcy court. Reversing, and agreeing with the Fourth Circuit, the panel held that attendance and objection are not prerequisites for satisfying the “person aggrieved” requirement for prudential standing. The panel remanded the case to the district court. IN RE POINT CENTER FINANCIAL 3
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