Citibank, N.A. v. Kipperman (In re Commercial Money Center, Inc.)

MEMORANDUM *

Citibank challenges the bankruptcy court’s approval of a settlement agreement between Kipperman and two creditors: ACE American Insurance Company and Illinois Union Insurance Company (together “ACE”). The district court affirmed the bankruptcy court’s approval on appeal. We affirm.

At the outset, we decline ACE’s invitation to dismiss the appeal as moot. Meaningful relief can be fashioned, even though the settlement between ACE and the estate has been accomplished (both are parties before the bankruptcy court), and without creating an unmanageable situation for the bankruptcy court. Cf. In re Roberts Farms, Inc., 652 F.2d 793 (9th Cir.1981).

Citibank’s arguments on the merits turn on its submission that the bankruptcy court approved a settlement that affects its interests in an insurance policy (the “Citibank Policy”). All are answered by the fact that the settlement agreement does not purport to affect any interest other than that of the debtors. See In re Marine Distribs., 522 F.2d 791, 795-96 (9th Cir.1975).

First, the bankruptcy court had jurisdiction over the bankruptcy estates of Commercial Money Center, Inc. and Commercial Servicing Corporation…