Silver Sage Partners, Ltd. v. City of Desert Hot Springs
Silver Sage Partners, Ltd. v. City of Desert Hot Springs
Opinion of the Court
MEMORANDUM
Silver Sage Partners, Ltd. (“Silver Sage”) appeals the district court’s affirmance of the bankruptcy court, which denied Silver Sage’s motion for complete relief from the bankruptcy stay and granted partial relief. We have jurisdiction under 28 U.S.C. § 158(d), and we affirm. Because the facts are familiar to the parties, we will not recite them here.
Silver Sage’s best argument is that the “for cause” exception to the stay set forth in 11 U.S.C. § 362(d)(1) applies because the City of Desert Hot Springs (“City”) filed for bankruptcy in bad faith and/or failed to meet the prerequisites for filing. Silver Sage loses the argument, however, because it has introduced insufficient evidence of bad faith. That City officials may have misunderstood Chapter 9 bankruptcy proceedings or have been overly optimistic about their result does not show that they consciously desired to evade the law.
Silver Sage also argues that the City failed to satisfy two of the five prerequisites for filing.
Silver Sage offers a creative argument that an exception to the stay applies to this case because the court is a governmental unit enforcing its police and regulatory power.
Silver Sage conceded at oral argument that no violation of state law has occurred. Even without that concession, however, this panel would not consider the Tenth Amendment argument as Silver Sage failed to raise it before the district court
For the foregoing reasons, we AFFIRM the district court.
AFFIRMED.
This disposition is not appropriate for publication and may not be cited to or by the courts of this circuit except as provided by Ninth Circuit Rule 36-3.
. 11 U.S.C. § 109(c).
. Carrillo v. Su, 290 F.3d 1140, 1142 (9th Cir. 2002).
. Id.
. See 11 U.S.C. § 362(d).
. Id.
. See, e.g., Berg v. Good Samaritan Hosp., 230 F.3d 1165, 1168 (9th Cir. 2000).
. United States v. Klimavicius-Viloria, 144 F.3d 1249, 1266 (9th Cir. 1998).
Reference
- Full Case Name
- In re: CITY OF DESERT HOT SPRINGS, Debtor, Silver Sage Partners, Ltd., a California limited partnership Robert E. Fillet, Paul Saben, Richard L. Earlix, general partners and individually Michael Linsk v. City Of Desert Hot Springs
- Status
- Published