In Re Cooper Commons, Llc, Debtor, Weinstein, Eisen & Weiss, LLP v. David A. Gill, Chapter 11 Trustee Comerica Bank

Good Law
430 F.3d 1215·2005 WL 3299912·2005 U.S. App. LEXIS 26642
United States Court of Appeals for the Ninth CircuitDecember 7, 200503-56818California1,979 words

Opinion

Opinion

O'Scannlain, J.

ORDER

The Court sua sponte recalls the mandate issued on November 18, 2005. The opinion filed on September 13, 2005, and reported at 424 F.3d 963 , is hereby amended. The amended opinion is filed concurrently with this order. The Court directs the Clerk to reissue the mandate forthwith.

OPINION

We must decide whether a lender to a bankrupt condominium development can effectively specify that post-petition loans it makes may be used only for certain purposes.

I

Cooper Commons, LLC, voluntarily entered Chapter 11 bankruptcy on February 22, 2002. Its business consisted of the construction and sale of a 62-unit condominium development in West Hollywood, California. Its principal creditor was Comerica Bank, which has a senior security interest in the development.

Cooper Commons acted as debtor-in-possession for nine months, until the appointment of David A. Gill as trustee. During this period, Weinstein, Eisen and Weiss, LLP, (“the Weinstein firm”), acted as its general counsel and helped Cooper Commons negotiate three agreements, or stipulations, with Comerica Bank for continued financing necessary to the completion of the condominiums.

In the first stipulation, Comerica agreed…

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