Sosa

Kingsway Capital Partners, LLC v. Sosa

Good Law
2016 WL 69909·549 B.R. 897·2016 U.S. Dist. LEXIS 1247
United States District Court, Northern District of CaliforniaJanuary 6, 2016Case No. 15-cv-03138-RSCalifornia4,319 words

Opinion

Lead Opinion

Seeborg, J.

ORDER AFFIRMING JUDGMENT OF THE BANKRUPTCY COURT AND DENYING KINGSWAY’S REQUEST FOR A TEMPORARY RESTRAINING ORDER

I. INTRODUCTION

This bankruptcy appeal began as a dispute between a tenant, appellant-debtor Kingsway Capital Partners, LLC, and its landlord, appellee Maria Sosa. After Kingsway’s sole owner-member, president, and responsible individual, Nathanial So-bayo, interacted with Sosa’s insurance inspector in an unprofessional manner and filed questionable monthly operating reports, the bankruptcy court issued an order to show cause why the case should not be dismissed or converted to Chapter 7 bankruptcy pursuant to 11 U.S.C. § 1112 (b)(1). When Kingsway’s responses proved to be unsatisfactory, the court having lost all confidence “in the veracity or competence of [Sobayo],” dismissed the chapter 11 case. Appellant App’x (“AA”) at 989.

Kingsway filed this timely appeal, advancing numerous theories as to why the bankruptcy court abused its discretion by dismissing Kingsway’s chapter 11 bankruptcy, none of which carries the day. Thus, the bankruptcy court’s order of dismissal is affirmed. Subsequently, on January 4, 2016, Kingsway filed an application for a temporary…

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