Canter

*1152 OPINION

Creditors/Appellants Alan (“Alan”) and Elizabeth (“Elizabeth”) Canter, and the Canter Family Trust (“Canter Trust”) appeal the district court’s sua sponte withdrawal of reference, and its order denying their motion to vacate the stay of the municipal court’s judgment in an unlawful detainer action against Debtor/Appellee Deborah M. Canter (“Deborah”).

Because the district court erred when it sua sponte withdrew the reference to the bankruptcy court without showing cause, and improperly enjoined the enforcement of the municipal court judgment, we vacate the withdrawal of reference and stay order, and remand the matter to the bankruptcy court.

BACKGROUND

On September 11, 1991, Alan and Elizabeth Canter purchased 446 S. Highland Avenue, Los Angeles, California (“446 S. Highland”) as an investment. Alan and Elizabeth’s son, Gary Canter (“Gary”), and Gary’s wife Deborah resided in Alan and Elizabeth’s house from September 25, 1991, until February 24, 1999, when Gary and Deborah separated. Since purchasing the property in 1991, Alan and Elizabeth have been the only persons with legal or equitable title to the property. They transferred title to the Canter Family Trust…