Stone v. 350 Encinitas Investments, LLC
Stone v. 350 Encinitas Investments, LLC
Opinion of the Court
MEMORANDUM
A business known as 350 Encinitas, LLC (“LLC”), filed for Chapter 11 bankruptcy. A plan of reorganization was confirmed in 2003, and the bankruptcy court administratively closed its file in 2005. Thereafter, the previous owner of the LLC filed claims against the LLC, and others, in state court. Eventually some of the parties, including the LLC, reached a settlement agreement involving the state claims and also involving several new allegations concerning the bankruptcy plan. The settling parties presented their settlement agreement to the bankruptcy court for approval. That court approved the settlement over the objection of Barry Stone and Gas Plus, Inc. (“Stone parties”). The Stone parties appealed to the district court, which affirmed the bankruptcy court. The Stone parties timely appeal.
2. We review for abuse of discretion the bankruptcy court’s approval of a settlement. Martin v. Kane (In re A & C Props.), 784 F.2d 1377, 1380 (9th Cir. 1986). The settlement agreement was not a de facto amendment of the confirmed plan, because nothing in the settlement of later-arising claims altered the plan itself. Additionally, the bankruptcy court did not err in approving the settlement. The same judge presided over the settlement hearings as had presided over the underlying ease; the court heard extensive oral arguments concerning the wisdom of the settlement; and the court considered the appropriate factors and permissibly concluded that the settlement was fair. See id. at 1382-83 (approving settlement in similar circumstances).
AFFIRMED.
This disposition is not appropriate for publication and is not precedent except as provided by Ninth Circuit Rule 36-3.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.