Gill
Weinstein, Eisen & Weiss v. Gill (In Re Cooper Commons LLC)
Opinion
Opinion
Noonan, J.
Bankruptcy is an intensely practical affair. Bankruptcy seeks fair treatment for everyone. These two principles animate and guide the law within the statutory framework set by the Bankruptcy Code. In this case they appear to clash. On closer examination of the facts, the clash is chimerical.
Weinstein, Eisen and Weiss (the Firm) appeals the judgment of the district court affirming the order of the bankruptcy judge in favor of David A. Gill, Chapter 11 Trustee (the Trustee). In this case of first impression in the Ninth Circuit, we affirm the judgment of the district court.
FACTS AND PROCEEDINGS
On February 22, 2002, Cooper Commons, LLC (the Debtor) filed a petition for relief under Chapter 11 of Title 11 of the Bankruptcy Code. The Debtor as debtor-in-possession continued to operate the enterprise (the construction of housing). Prior to the bankruptcy filing, the Comeri-ca Bank (the Lender) had lent over $16 million to the Debtor. To save the project, the Debtor entered into three agreements with the Lender providing an additional $7 million. These agreements were each approved by the bankruptcy court. Counsel for the Debtor was the Firm. The Firm represented it in negotiating…