Picerne Construction Corp. v. Castellino Villas, A. K. F. LLC (In Re Castellino Villas, A. K. F. LLC)

Good Law
836 F.3d 1028·2016 WL 4608146·63 Bankr. Ct. Dec. (CRR) 23·76 Collier Bankr. Cas. 2d 202·2016 U.S. App. LEXIS 16360
United States Court of Appeals for the Ninth CircuitSeptember 6, 201612-57186California3,511 words

Opinion

Opinion

Ikuta, J.

We are asked to determine whether the bankruptcy court erred as a matter of law by holding that attorneys’ fees in-curred during litigation after the confir-mation of a Chapter 11 bankruptcy plan were discharged by that bankruptcy. We have jurisdiction under 28 U.S.C. § 158 (d). Picerne’s claim for attorneys’ fees arose before Castellino filed its bankruptcy petition, and Castellino’s post-discharge con-duct did not amount to “a whole new course of litigation,” Siegel v. Fed. Home Loan Mortg. Corp., 143 F.3d 525, 534 (9th Cir. 1998). Therefore, under the cir-cumstances of this case, Picerne’s attor-neys’ fees claim was discharged in Castel-lino’s bankruptcy.

I

Castellino Villas LLC (Castellino) hired Picerne Construction Corp. dba Camel-back Construction (Picerne), a general contractor, to construct a 120-unit apartment complex on Castellino’s property. Pi-cerne and Castellino entered into an agreement for the work that contained an attorneys’ fees provision, which stated, in pertinent part:

Castellino defaulted on its obligations and failed to pay Picerne and its subcon-tractors for their work. In response, Pi-cerne filed a demand for arbitration and a mechanic’s lien…

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