Ashurst Land & Cattle, LLC v. Rancho Mountain Properties, Inc.

MEMORANDUM

Ashurst Land and Cattle, LLC, Ray Gray, and Linda Gray (“Plaintiffs”) appeal the district court’s order granting defendant Rancho Mountain Properties, Inc.’s (“Rancho”) motion to dismiss pursuant to Rule 12(b)(6). Reviewing the district court’s order de novo, see Andersen v. DHL Ret. Pension Plan, 766 F.3d 1205, 1210 (9th Cir.2014), we affirm.

1. The district court properly concluded that Plaintiffs lack standing to raise the alleged unlawful foreclosure claims, as such claims are exclusive property of the bankruptcy estate. “[T]he bankruptcy code endows the bankruptcy trustee with the exclusive right to sue on behalf of the estate.” Estate of Spirtos v. Superior Court, 443 F.3d 1172 , 1176 (9th Cir.2006) (emphasis added); see also 11 U.S.C. § 323 (b). Also, all claims arising out of the Ashurst Ranch property were released by the bankruptcy trustee in its settlement agreement with Rancho, and so may no longer be litigated.

2. Acknowledging they lack standing to bring claims arising from the alleged foreclosure as to any real property, Plaintiffs contend that they should be granted leave to amend their complaint to raise claims relating to personal property at…