First Korean Christian Church of San Jose v. Dong Wuk Kim (In re First Korean Christian Church of San Jose)

MEMORANDUM DECISION ON PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT AND DEFENDANTS’ MOTION TO DISMISS

On January 25, 2017, this court held a hearing on the motion for summary judgment (“MSJ”) filed by debtor and plaintiff First Korean Christian Church of San Jose (“FKCC” or “Debtor”), a non-profit religious California corporation, and the motions of the individual defendants-Dong Wuk Kim (“DW Kim”) and Myung II Youm (collectively, “the Kim Defendants”) to dismiss this adversary proceeding (“MTD AP”) and to dismiss the counterclaim filed by Korean Evangelical Church of American (“KECA”) against them (“MTD CC”) and Debtor. 1 For the reasons set forth below, the court will grant the MSJ and deny the MTD AP and the MTD CC. 2

I. BACKGROUND

FKCC filed the underlying chapter 11 bankruptcy case (the “Main Case”) on September 3, 2015, and continues as debtor in possession. FKCC and KECA were co-borrowers on a loan secured by church property located in Sunnyvale, CA (the “Property”). As of the petition date, BBCN Bank held the underlying note and a valid and perfected deed of trust lien on the Property. BBCN Bank filed a motion for relief from stay (“MRS”) on February 24, 2016; the Kim…