UnionAmerica, Inc. v. Meteora Properties, Inc. (In re Meteora Properties, Inc.)
Opinion
Lead Opinion
Rainville, J.
OPINION AND ORDER
I. This order to show cause for a preliminary injunction was heard on April 7, 1982. This ease having been submitted on the oral arguments of counsel and written briefs filed, the court now makes its opinion and order as follows:
1. On November 14, 1977, Meteora filed a case under Chapter XI of the Bankruptcy Act in the Bankruptcy Court for the Northern District of California entitled In Re Meteora Properties, Inc., Chapter XI Case No. 3-77-1476.
*933 2. A receiver was appointed January 17, 1978.
3. At the time of the filing, there were two lawsuits in progress involving Meteora in the San Francisco Superior Court against Genstar (then Western Mortgage). 1 The receiver entered into an agreement with Genstar to compromise the said lawsuits, the compromise providing for sharing some of the interpleaded money and for dismissals.
4. The receiver applied to the court for an order of approval of the compromise. The debtor, Meteora, opposed the compromise. Hearing was set for April 12, 1978, and was continued several times at Meteo-ra’s request to allow Meteora to obtain counsel. A hearing was finally held on July 28, 1978, resulting in an order of approval of the…