United States Ninth Circuit

In this bankruptcy case, appellant Rev Op Group, a group of pass-through investors with an actual interest in underlying loans belonging to debtor Mortgages Ltd., challenged the proposed sale of some of the loans by the manager of the loans remaining in the debtor's portfolio, ML Manager. The bankruptcy court's declaratory judgment that ML Manager had agency authority to sell property of the bankruptcy estate of Mortgages Ltd. is reversed, where: 1) Rev Op Group was not bound to the agency agreements because it denied in its answer that its investors had signed any documents that included the agency provisions; and 2) under the federal pleading rules, a court cannot disregard statements in a pleading unless there is a determination that the statement was made in bad faith.

Appellate Information

• Decided 11/12/2014
• Published 11/12/2014

Judges

• Wallace

Court

• United States Ninth Circuit

Counsel