C & S Co. v. Nelson (In Re South Edge, LLC)

MEMORANDUM

C & S Company appeals the district court’s order affirming the bankruptcy court’s decision allowing C & S’s claim to proceed as nonrecourse, but barring recovery from South Edge’s bankruptcy estate. We have jurisdiction under 28 U.S.C. § 158 (d)(1). Reviewing the bankruptcy court’s rulings independently, Neilson v. United States (In re Olshan), 356 F.3d 1078, 1083 (9th Cir.2004), we affirm.

C & S argues that the bankruptcy court made an error of law, and therefore abused its discretion, when it determined that the Stipulation Regarding Relief from the Automatic Stay unambiguously prevented C & S from recovering against South Edge’s bankruptcy estate. See Koon v. United States, 518 U.S. 81, 100 , 116 S.Ct. 2035 , 135 L.Ed.2d 392 (1996) (“The abuse-of-discretion standard includes review to determine that the discre tion was not guided by erroneous legal conclusions.”)- We hold that the bankruptcy court did not abuse its discretion in sustaining the Estate’s objection to C & S’s proof of claim.

“The interpretation of a settlement agreement is governed by principles of state contract law.” Botefur v. City of Eagle Point, 7 F.3d 152, 156 (9th Cir. 1993) (citing Jeff D. v.…