In Re Focus Media, Inc., Debtor, Focus Media, Inc. v. National Broadcasting Company Inc. Abc Inc. Paxson Communications Inc.

Good Law

378 F.3d 916·2004 WL 1716447·43 Bankr. Ct. Dec. (CRR) 100·52 Collier Bankr. Cas. 2d 770·2004 U.S. App. LEXIS 15839

United States Court of Appeals for the Ninth CircuitAugust 2, 200403-55808California6,180 words

Opinion

Fisher, J.

This appeal arises from an involuntary Chapter 7 bankruptcy petition filed by eight putative creditors of Focus Media, Inc. (“Focus”). These creditors consisted of appellees National Broadcasting Company, Inc. (“NBC”), ABC Inc. (“ABC”) and Paxson Communications, Inc. (“Paxson”), as well as five affiliates of ABC (collectively with appellees, “petitioning creditors”). Focus appeals the district court’s order affirming the bankruptcy court’s orders (1) granting the petitioning creditors’ motion for summary judgment and (2) denying Focus’ motions to disqualify the bankruptcy judge. Appellees contend that this appeal is moot and that, in any event, the bankruptcy and district courts correctly decided the merits.

We do not dismiss Focus’ appeal as moot. However, because Focus did not present evidence that creates a triable issue of fact regarding the involuntary petition requirements of 11 U.S.C. § 303 , and the bankruptcy judge did not abuse her discretion in deciding not to recuse herself, we affirm.

BACKGROUND

Focus was a media-buying company that placed commercial spots for its clients on television and radio stations. Its two major clients were Sears, Roebuck & Co. (“Sears”)…

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