Blixseth v. Glasser (In Re Yellowstone Mountain Club, LLC)

MEMORANDUM

Timothy L. Blixseth appeals from a district court order affirming the bankruptcy court’s judgment in favor of the Yellowstone Club Liquidating Trust (‘YCLT”). YCLT appeals the order as well, because it affirmed the bankruptcy court’s decision to reduce damages under the in pari delicto doctrine. We affirm the judgment in favor of YCLT and reverse the' reduction in damages.

1. There is no jurisdictional issue under Stern v. Marshall, 564 U.S. 462 , 131 S.Ct. 2594 , 180 L.Ed.2d 475 (2011).

Blixseth intervened in the bankruptcy court proceedings, thereby “voluntarily appearing] ... before the non-Article III adjudicator.” Wellness Int’l Network, Ltd. v. Sharif, — U.S. -, 135 S.Ct. 1932, 1948 , 191 L.Ed.2d 911 (2015) (quoting Roell v. Withrow, 538 U.S. 580, 590 , 123 S.Ct. 1696 , 155 L.Ed.2d 775 (2003)). Even if Blixseth is correct that he could not give his knowing and voluntary consent before the case law made him aware of the jurisdictional issue, this Court’s decision in Marshall v. Stern, 600 F.3d 1037 (9th Cir. 2010) gave Blixseth “ample reason to be alert to the possible jurisdictional problem.” In re Bellingham Ins. Agency, Inc., 702 F.3d 553, 569 (9th Cir.…