Leslie v. Mihranian, No. 17-60090 (9th Cir. 2019)Annotate this Case
A party moving for substantive consolidation must give notice of the motion to creditors of a putative consolidated non-debtor. The Ninth Circuit affirmed the bankruptcy appellate panel's (BAP) decision affirming the bankruptcy court's denial of a Chapter 7 trustee's motion to substantively consolidate debtor's estate with the estates of various non-debtors. The panel held that there was no notice given in this case and the panel rejected the trustee's argument that he provided notice to the same extent as was provided in In re Bonham. Furthermore, the BAP did not err by concluding that the trustee failed to adequately research and serve non-debtors' creditors.