Pioneer Liquidating Corp. v. San Diego Trust & Savings Bank

AMENDED ORDER GRANTING DEFENDANT SAN DIEGO TRUST & SAVINGS BANK’S MOTIONS FOR JUDGMENT AS A MATTER OF LAW AND DENYING PLAINTIFF PIONEER LIQUIDATING CORPORATION’S MOTIONS FOR JUDGMENT AS A MATTER OF LAW

Plaintiff Pioneer Liquidating Corporation (“PLC”) is a liquidating corporation, created in bankruptcy, and vested with substantially all the assets of the Consolidated Pioneer Mortgage Entities. The Consolidated Pioneer Mortgage Entities are a consolidation of the debtor estates of six related corporations that filed for bankruptcy in January 1991: Naiman Financial Corporation; Naimpro, Inc.; Naimco-Clairemont, Inc.; Naimco, Inc.; Alvarado Investment Corporation; and Frontier Service Corporation (collectively “debtors” or “Pioneer”). PLC was formed to take title to Pioneer’s assets, liquidate the assets, and distribute them to creditors and investors according to a Joint Plan of Reorganization. PLC’s assets include claims against third parties. This suit is an adversary proceeding against third-party defendant San Diego Trust & Savings Bank (“SDT” or “Bank”) and its successor-by-merger, Wells Fargo Bank.

Pioneer was in the business of granting mortgages in the San Diego real…