Paco Financial, Inc. v. Miguel (In re Miguel)

MEMORANDUM OPINION AND DECISION

October 2, 1981, Placida S. Miguel and Leon R. Miguel filed a joint voluntary petition for relief pursuant to Chapter 11 of the Bankruptcy Code of 1978. On November 4, 1981, Paco Financial, Inc., and Linden Financial, Inc. [plaintiffs hereinafter], filed an adversary “Complaint for Reclamation” against Placida Miguel and Leon Miguel and against Leonidas, Inc., a corporation owned solely by Leon and Placida Miguel.

The primary allegation of plaintiffs’ complaint is that Leonidas, Inc.-, transferred title to real property in Yolo County designated in these proceedings as the Aldersen Convalescent Hospital and sometimes Countryside Nursing Home [hereinafter The Hospital] from Leonidas, Inc., to the Migu-els in their individual capacities. The Plaintiffs allege that this transfer of title took place for the sole purpose of hindering and delaying plaintiffs in their efforts to foreclose on The Hospital on which they held a second deed of trust. Plaintiffs seek relief from this Court in the form of an order directing all defendants to deliver the real property to the court or the court’s agent to be held for a Trustee’s Sale together with an award of…