In Re Century Centre Partners Limited, Debtor, Century Centre Partners Limited v. Federal Deposit Insurance Corporation

Century Centre Partners, Ltd. (“Century Centre”), a Chapter 11 debtor, brought suit against the Federal Deposit Insurance Corporation (“FDIC”) in the bankruptcy court for the Central District of California. Century Centre objected to the FDIC’s secured claims and requested that they be reclassified as equity interests (First Claim); sought equitable subordination of the FDIC claims and requested transfer of the FDIC’s liens to the debtor’s estate (Second Claim); sought turnover of payments by Century Centre to the FDIC as a secured creditor (Third Claim); and alleged breach of the covenant of good faith and fair dealing and of fiduciary duty by FDIC in disapproving a proposed settlement (Fourth Claim).

The bankruptcy court granted summary judgment to the FDIC on the First, Second and Third Claims, declining to do so on the Fourth Claim because material facts remained in dispute. The district court affirmed the judgment of the bankruptcy court. We now affirm the district court.

FACTS

For purposes of this appeal, and for no other purpose in this litigation, we accept the following facts as true. They are taken from the declaration filed March 25, 1990 by Aron B. Katz, president…