Keenan

MEMORANDUM *

Debtor James Keenan and his wife, Judy Keenan (“Keenans”), appeal the district court’s decision affirming the bankruptcy court’s order approving the settlement of a legal malpractice claim against Joel Pressman, Robert Kolodny, John Miller, Ronald Mix, and Kolodny & Pressman, A.P.C. (collectively “Kolodny”). The Keenans argue that the agreement is illegal because it is an assignment of a malpractice action. Because we find that the Kolodny agreement was merely a creative, as well as fair, settlement, we affirm.

“In an appeal from the district court’s affirmance of a decision of the bankruptcy court, our role is essentially the same as that of the district court, and we are, in essence, reviewing the final order of the bankruptcy court.” Martin v. Kane (In re A & C Props.), 784 F.2d 1377, 1380 (9th Cir.1986). We review the bankruptcy court’s order approving the trustee’s proposed compromise of a claim for an abuse of discretion. Id.

The Keenans argue that the Kolodny agreement, originally entitled “Sale, Compromise, and Settlement Agreement,” is illegal because California law forbids the sale of legal malpractice claims to third parties, including malpractice claims…