United States Ninth Circuit

Jane O'Donnell, through Appellant Pensco Trust Company, challenges the decisions of bankruptcy court and the Bankruptcy Appellate Panel that her claim based on a minority membership interest in the debtor is subject to mandatory subordination under the Bankruptcy Code. Before the bankruptcy petition was filed, the debtor failed to pay O'Donnell the amount an arbitrator awarded for the repurchase of her membership interest, and O'Donnell sought and received a money judgment for that amount in state court. The judgment is affirmed, where the claim was subject to mandatory subordination under 11 U.S.C. section 510(b) because it was a claim for damages arising form the purchase or sale of a security of the debtor.

Appellate Information

• Decided 04/02/2015
• Published 04/02/2015

Judges

• Owens

Court

• United States Ninth Circuit

Counsel