U.S. Bank N.A. Ex Rel. CWCapital Asset Management LLC v. Village at Lakeridge, LLC (In Re Village at Lakeridge, LLC)

MEMORANDUM

The bankruptcy court did not err in declining to designate Rabkin’s claim as being assigned and voted in bad faith pursuant to 11 U.S.C. § 1126 (e). We affirm.

We review for clear error the bankruptcy court’s finding that a party acted in good faith. Figter Ltd. v. Teachers Ins. & Annuity Ass’n of Am. (In re Figter Ltd.), 118 F.3d 635, 638 (9th Cir.1997). In reviewing a decision for clear error, we

United States v. Hinkson, 585 F.3d 1247, 1261 (9th Cir.2009) (citing United States v. Yellow Cab Co., 338 U.S. 338 , 70 S.Ct. 177 , 94 L.Ed. 150 (1949)).

Under. § 1126(e), “the court may designate any entity whose acceptance or rejection of [a reorganization] plan was not in good faith, or was not solicited or procured in good faith or in accordance with the provisions of this title.” Acceptance or rejection is made in bad faith if a creditor is “not attempting to protect [his] own proper interests, but [is], instead, attem.pl> ing to obtain some benefit to which [he is] not entitled,” such as an “untoward advantage over other creditors for some ulterior motive.” In re Figter Ltd., 118 F.3d at 638-39 . Ulterior motives include “malice, ‘strikes’ and blackmail,” or…