Saba v. Cory (In Re Flamingo 55, Inc.)

MEMORANDUM

John Saba and Gregory Grantham appeal the district court order affirming the bankruptcy court decision dismissing Saba and Grantham’s complaint for dissolution of partnership for failure to state a claim. We have jurisdiction pursuant to 28 U.S.C. § 158 (d). We affirm.

In 2007, the bankruptcy court ruled that Saba and Grantham, who are successors in interest to Broadway-Acacia, LLC, were not entitled to subrogate to Datacom Investment Company’s position as a secured creditor in the Flamingo 55, Inc. bankruptcy proceeding. In re Flamingo 55, Inc., 378 B.R. 893, 919-21 (Bankr.D.Nev.2007). In 2011, this court affirmed the bankruptcy court’s ruling. In re Flamingo 55, Inc., 646 F.3d 1253 (9th Cir.2011). We explained that the bankruptcy court found that Broadway-Acacia and Flamingo 55 “were partners or coventurers in a venture to develop certain property,” and the Data-com loan “was to them for the purpose of pursuing that venture.” Id. at 1254 . We concluded the bankruptcy court’s finding was not clearly erroneous, and as a result of Broadway-Acacia’s status as a partner or coventurer in the development enterprise, Saba and Grantham were not entitled to subrogation. Id.…