Transcorp/Wilbur S. Avant, Jr., M.D. Rollover I.R.A. v. Pioneer Liquidating Corp. (In Re Consolidated Pioneer Mortgage Entities)

205 B.R. 422, 97 Cal. Daily Op. Serv. 2453, 97 Daily Journal DAR 6105, 1997 Bankr. LEXIS 546, 1997 WL 87398
CourtUnited States Bankruptcy Appellate Panel for the Ninth Circuit
DecidedJanuary 7, 1997
DocketBAP No. SC-95-1980-AsJV, Bankruptcy No. 91-00214-M11, Adv. No. 95-90066-M11
StatusPublished
Cited by7 cases

This text of 205 B.R. 422 (Transcorp/Wilbur S. Avant, Jr., M.D. Rollover I.R.A. v. Pioneer Liquidating Corp. (In Re Consolidated Pioneer Mortgage Entities)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Appellate Panel for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Transcorp/Wilbur S. Avant, Jr., M.D. Rollover I.R.A. v. Pioneer Liquidating Corp. (In Re Consolidated Pioneer Mortgage Entities), 205 B.R. 422, 97 Cal. Daily Op. Serv. 2453, 97 Daily Journal DAR 6105, 1997 Bankr. LEXIS 546, 1997 WL 87398 (bap9 1997).

Opinion

OPINION

ASHLAND, Bankruptcy Judge:

STATEMENT OF FACTS

Between 1986 and 1990, Naimeo-Claire-mont, Inc. made three loans to a group of borrowers. The loans were secured by promissory notes and trust deeds encumbering property in Julian, California. Naimco-Clairemont assigned the promissory notes and trust deeds to various investors.

In October 1990, Nenner Enterprises, Inc. made a $1,350,000 loan to borrowers, secured by a deed of trust on the property in Julian. Nenner Enterprises intended that the Naim-co-Clairemont liens be subordinated to the Nenner Enterprises lien, granting Nenner Enterprises a senior lien position. Subsequently, Nenner Enterprises assigned its beneficial interest in the trust deed to appellants.

Consolidated Pioneer Mortgage Entities is a consolidation of the bankruptcy estates of numerous corporations, including Naimco-Clairemont, Inc. Pioneer Liquidating Corporation is a liquidating corporation which was vested with substantially all of Consolidated Pioneer Mortgage’s assets. Hence, Pioneer holds the beneficial interests in the three promissory notes and trust deeds encumbering the property in Julian.

*424 In February 1994, Pioneer filed a state court complaint seeking to foreclose the notes and trust deeds. Pioneer named appellant as a defendant and sought a declaration that appellant’s trust deed was junior to Pioneer’s trust deeds.

Appellant filed a motion for judgment on the pleadings. Relying on a recent adversary proceeding involving Pioneer, in which the bankruptcy court held that Pioneer could not assert a claim against certain third parties, appellant argued that Pioneer was acting beyond the scope of its authority because here, too, it was attempting to assert claims against third parties. Appellant’s motion for judgment on the pleadings was eventually denied.

In January 1995, appellant filed a complaint in the bankruptcy court against Pioneer. The complaint sought: a declaration that Pioneer’s prosecution of claims against appellant is beyond Pioneer’s scope of authority; to enjoin Pioneer from prosecuting such claims against appellant; and a recovery of damages incurred by appellant in defending itself in the state court.

Concurrently, appellant filed a request for immediate injunctive relief from the bankruptcy court. Stating that it did not have jurisdiction, the court denied the request. The court further elaborated that, if it had jurisdiction, it would decline to exercise it for reasons of comity.

Meanwhile, a settlement between appellant and Pioneer was entered in state court on February 10, 1995. The state court granted Pioneer’s motion to enforce the settlement over appellant’s objections. Shortly thereafter, appellant filed a writ of petition with the California Court of Appeals. On June 2, 1995, the appeals court stayed enforcement of the state court’s settlement order until further notice. Thus far, the stay is in effect.

In May 1995, Pioneer filed a motion seeking to dismiss appellant’s complaint in the bankruptcy court. Pioneer’s motion is based on its contention that the bankruptcy court lacks jurisdiction over the subject matter of the complaint and that the complaint fails to state a claim for relief, pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6), respectively. Fed.R.Civ.P. 12(b)(1) and 12(b)(6) are made applicable to bankruptcy proceedings through Federal Rule of Bankruptcy Procedure 7012. The bankruptcy court granted Pioneer’s motion to dismiss without leave to amend. Appellant appeals the court’s order.

ISSUES ON APPEAL

1. Whether the bankruptcy court erred in granting Pioneer’s motion to dismiss appellant’s complaint based on Fed.R.Civ.P. 12(b)(1) and 12(b)(6).

2. Whether the bankruptcy court erred in denying appellant an opportunity to amend its complaint.

STANDARD OF REVIEW

A dismissal for failure to state a claim pursuant to Fed.R.Civ.P. 12(b)(6) is a question of law and as such is reviewed de novo. Oscar v. University Students Co-operative Ass’n, 965 F.2d 783, 785 (9th Cir.1992). The existence of subject matter jurisdiction is also a question of law subject to de novo review. Reebok Int'l Ltd. v. Marnatech Enterprises, Inc., 970 F.2d 552, 554 (9th Cir.1992). The district court’s factual findings on jurisdictional issues must be accepted unless clearly erroneous. Reebok, 970 F.2d at 554. Abstention decisions are reviewed under the abuse of discretion test. C-Y Development Co. v. City of Redlands, 703 F.2d 375, 377 (9th Cir.1983). A dismissal without leave to amend receives de novo review. Polich v. Burlington Northern, Inc., 942 F.2d 1467, 1472 (9th Cir.1991).

De novo means considering the matter anew, as if it had not been heard before and as if no decision previously had been rendered. United States v. Silverman, 861 F.2d 571, 576 (9th Cir.1988). In reviewing decisions of the district court, the court of appeals may affirm on any ground supported by the record. Trimble v. City of Santa Rosa, 49 F.3d 583, 584 (9th Cir.1995).

DISCUSSION

I. Dismissal for Lack of Subject Matter Jurisdiction and Failure to State a Claim

A Standing

When reviewing a motion to dismiss a complaint, the court is required to read the *425 complaint charitably and assume that all general allegations embrace whatever specific facts may be necessary to support them. Peloza v. Capistrano Unified School Dist., 37 F.3d 517, 521 (9th Cir.1994), cert. denied, — U.S. —, 115 S.Ct. 2640, 132 L.Ed.2d 878 (1995). Additionally, dismissal is warranted only if it appears to a certainty that the plaintiff would be entitled to no relief under any state of the facts that could be proved. NL Industries, Inc. v. Kaplan, 792 F.2d 896, 897 (9th Cir.1986).

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205 B.R. 422, 97 Cal. Daily Op. Serv. 2453, 97 Daily Journal DAR 6105, 1997 Bankr. LEXIS 546, 1997 WL 87398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/transcorpwilbur-s-avant-jr-md-rollover-ira-v-pioneer-liquidating-bap9-1997.