In re RW Meridian LLC

MEMORANDUM DECISION RE MOTION FOR COMFORT ORDER RE AUTOMATIC STAY FILED BY THE COUNTY OF IMPERIAL TREASURER-TAX COLLECTOR

Before the court is a motion for a comfort .order regarding the automatic stay (“Motion”) filed on February 12, 2016 by the County of Imperial Treasurer-Tax Collector (“County”). In its Motion, the County requests the court confirm that the automatic stay was not violated by the conclusion of County’s post-petition tax sale (“Sale”) of a 58.53 acre parcel of unimproved land located in Imperial County (“Property”) on February 9, 2016. The County claims Debtor RW Meridian, LLC (“Debtor”) held no interest in the Property when it filed its Chapter 7 petition commencing this case on February 8, 2016 because Debtor’s right of redemption under Cal. Rev. & Tax.Code (“Tax Code”) § 3707(a)(1) expired pre-petition, and that the Country’s conduct of the Sale post-petition was a ministerial act. Debtor’s Chapter 7 Trustee Ronald E. Stadtmueller (“Trustee”) opposes the County’s Motion and contends that the Sale not only violated the automatic stay, but it is also void.

The County’s argument rests on the holding of In re Tracht Gut, LLC, 503 B.R. 804, 812 (9th Cir. BAP…