Redwood Trust v. American Budget Storage, LLC

MEMORANDUM *

Redwood Trust (“Redwood”) appeals the Bankruptcy Appellate Panel’s (“BAP”) af *376 firmance of a bankruptcy court order approving a compromise, arguing that the bankruptcy court failed to consider the relevant factors under Martin v. Kane (In re A & C Props.), 784 F.2d 1377, 1381 (9th Cir.1986), to determine that the compromise was “fair and equitable.” We agree with the BAP and affirm.

As a preliminary matter, the bankruptcy court did not abuse its discretion in determining that Redwood had standing. Despite some ambiguities, the debtor’s name on the amended petition matched the name of the grantor in the document establishing the Redwood Trust. Thus, if the bankruptcy trustee (“Trustee”) successfully prosecuted the adversary lawsuit, Redwood stood to benefit. Consequently, Redwood has standing as an aggrieved party because the settlement could “diminish [its] property ... [and] detrimentally affect its rights.” Duckor Spradling & Metzger v. Baum Trust (In re P.R.T.C., Inc.), 177 F.3d 774, 777 (9th Cir.1999).

Nor does Redwood’s failure to file a proof of claim or interest preclude its ability to pursue this appeal. As the BAP noted, Rule 3002 of Bankruptcy…