George
George v. City of Morro Bay (In re George)
Opinion
Lead Opinion
Debtors James and Margie George contend that the bankruptcy court did not have jurisdiction to dismiss their 42 U.S.C. § 1983 takings claim, and that the dismissal was incorrect as a matter of law. The defendants, the City of Morro Bay and numerous city officials, move for attorneys’ fees and double costs for defending a frivolous appeal. We affirm the Bankruptcy Appellate Panel’s dismissal of all federal claims and award attorneys’ fees and double costs to the city defendants.
I
In 1987, debtors entered into a lease with the city for certain nonresidential real property. See In re George, 177 F.3d 885, 886 (9th Cir.1999). In 1994, debtors filed a petition for protection under Chapter 11. Id. at 887 . They did not assume or reject the lease of the property within 60 days of the petition, as required by 11 U.S.C. § 365 (d)(4). 2 Id. After the city moved for *1162 surrender of the property, debtors moved to assume the lease. The bankruptcy court granted the city’s motion for surrender and denied debtors’ untimely motion to assume. Id.
A number of appeals of that order ensued, the net result being that the bankruptcy court was upheld on all substantive issues. Relevant…