Donahue

Donahue v. Gunner, LLC

Good Law
197 F. App'x 579
United States Court of Appeals for the Ninth CircuitAugust 9, 2006No. 04-35992California451 words

Opinion

Lead Opinion

MEMORANDUM **

Gunner, LLC appeals the district court’s decision affirming the bankruptcy court’s order granting Trustee Terrence Donahue’s motion for summary judgment; avoiding Gunner’s lien on and subsequent purchase of Debtors Steve and Ginger Wentworth’s mobile home; and allowing Donahue to recover the value of the mobile home for the bankruptcy estate. Gunner argues that because its lien was enforced at a foreclosure sale before the Went-worths filed for bankruptcy, the bankruptcy court erred in holding that its lien was avoidable as a statutory lien pursuant to 11 U.S.C. § 545 . Gunner also contends that because the Wentworths had no equity in the mobile home, which was fully mortgaged to a third party, the bankruptcy court erred in its alternative holding that Gunner’s acquisition of the mobile home at the foreclosure sale was avoidable as a preferential transfer pursuant to 11 U.S.C. § 547 . We have jurisdiction under 28 U.S.C. §§ 158 (d) and 1291, and we affirm on the ground that Gunner’s lien was avoidable pursuant to § 545.

The bankruptcy and district courts correctly held that Donahue could avoid Gunner’s lien, which Gunner concedes was a statutory lien for rent, even…

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