3685 San Fernando Lenders, LLC v. Cross Equities Partners, LLC

MEMORANDUM

These consolidated interlocutory appeals arise from the related bankruptcy proceedings of USA Commercial Mortgage (“USACM”) and Asset Resolution, LLC (“Asset Resolution”), as well as subsequent civil litigation brought by certain creditors (the “Direct Lenders”). These matters are all now before Chief Judge Robert C. Jones of the District of Nevada.

USACM was in the business of underwriting and brokering short-term commercial loans on behalf of private investors, some of whom are the Direct Lenders involved in the present litigation. USACM also acted as the servicer for these loans pursuant to Loan Service Agreements (“LSAs”) made with the Direct Lenders. Following USACM’s bankruptcy, Compass Partners, LLC and Compass USA SPE, LLC (collectively “Compass”) acquired all of USACM’s relevant assets, including its rights under the LSAs. Silar Advisors, LP (“Si-lar”) financed Compass’s acquisition of these assets and subsequently foreclosed, conveying all interest in the relevant LSAs to Asset Resolution. Prior to this development, the parties here had already been engaged in litigation over whether USACM’s successor in interest may be terminated as the loan servicer under…