Stone v. 350 Encinitas Investments, LLC

MEMORANDUM *

A business known as 350 Encinitas, LLC (“LLC”), filed for Chapter 11 bankruptcy. A plan of reorganization was confirmed in 2003, and the bankruptcy court administratively closed its file in 2005. Thereafter, the previous owner of the LLC filed claims against the LLC, and others, in state court. Eventually some of the parties, including the LLC, reached a settlement agreement involving the state claims and also involving several new allegations concerning the bankruptcy plan. The settling parties presented their settlement agreement to the bankruptcy court for approval. That court approved the settlement over the objection of Barry Stone and Gas Plus, Inc. (“Stone parties”). The Stone parties appealed to the district court, which affirmed the bankruptcy court. The Stone parties timely appeal.

*72 1. We review de novo whether subject matter jurisdiction exists. Kingman Reef Atoll Invs., LLC v. United States, 541 F.3d 1189, 1195 (9th Cir.2008). Contrary to the Stone parties’ argument, the bankruptcy court had subject matter jurisdiction over this non-core proceeding. See Montana v. Goldin (In re Pegasus Gold Corp.), 394 F.3d 1189, 1193 (9th Cir.2005) (explaining core…