Okun

Okun v. Cassimer

Good Law
156 F. App'x 981
United States Court of Appeals for the Ninth CircuitDecember 12, 2005Nos. 02-56836, 02-56841, 02-56847, 02-56878, 02-56880, 02-56883, 02-56885, 02-56886, CC-01-01640-PBN, 02-56888, CC-01-01639-PBN, 02-56940, CC-01-01641-PBNCalifornia1,148 words

Opinion

Lead Opinion

MEMORANDUM *

Appellants challenge the bankruptcy court’s dismissal of ten involuntary bankruptcy petitions on Appellees’ motions to dismiss, which were treated as motions for summary judgment. Appellants do not argue that we should vacate the dismissal orders and reinstate the involuntary bankruptcy proceedings; rather, they contend that we should reverse the bad faith finding relied upon by the bankruptcy court as *984 one of the grounds for dismissal of nine of the ten involuntary bankruptcy petitions. We have jurisdiction pursuant to 28 U.S.C. § 158 (d), and we affirm.

There is ample evidence in the record to support the bankruptcy court’s finding that Appellants failed to conduct a reasonable inquiry into the relevant facts and pertinent law before commencing the involuntary bankruptcy actions. First, Appellants’ counsel repeatedly admitted at the June 13, 2001, hearing that his clients provided no evidence in their oppositions to the motions to dismiss indicating that they had made a reasonable inquiry into the relevant facts and pertinent law before commencing the involuntary bankruptcy actions. That Appellants supposedly could have presented such evidence is irrelevant.…

Concurring Opinion

Berzon, J.

concurring in the result.

I agree that we should affirm the dismissal of the ten petitions for involuntary bankruptcy. I write separately because I do not believe it necessary to reach the question whether involuntary bankruptcy petitions can be dismissed on the ground that they were filed in bad faith.

All ten petitions were dismissed on the ground that the debtors were generally paying their debts as they became due. The bankruptcy court noted that nine of the ten petitions could also have been dismissed on the alternative ground that the petitions were filed in bad faith. Appellants do not challenge the determination that the petitions were properly dismissed because the debtors were generally paying their debts as they became due. I would therefore not reach the question of whether dismissal on bad faith grounds was appropriate. The bad faith question can and should be addressed in proceedings under 11 U.S.C. § 303 (i)(2), if raised.

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